Spending, Tax Hikes Proposed with President Biden’s FY2022 Budget

On Friday, May 28, President Biden released his proposed budget for fiscal year 2022. The Presidential budget sets forward the administration’s proposed financial framework and provides Congressional committees a blueprint for the Administration’s vision for government spending over the next fiscal year.

The FY2022 budget totals some $6 trillion in spending. You can review the budget here, a fact sheet here and an analysis of the spending proposals here. The budget included many of the priorities outlined in the American Jobs Plan and the American Families Plan in addition to the core $1.5 trillion budget outlined earlier this year. The infrastructure investment proposed in the American Jobs Plan was included and clarified in the Department of Transportation’s Budget Highlights document.

The budget includes a number of tax proposals. For corporations, the budget proposes to raise the corporate tax rate to 28%, establish a minimum book tax, tighten international tax rules and eliminate certain tax credits. For individuals, the budget proposal will raise the top tax bracket, tax income from long-term capital gains and carried interest at ordinary rates, and eliminate step-up in basis of assets for death tax calculations. You can read a full analysis published by Deloitte here. A provision of the 2017 Tax Cuts and Jobs Act allowing closely held corporations to deduct up to 20% from their pre-tax income was not touched.

For more information, contact Andrew Tyrrell at atyrrell@nrmca.org.