On March 9, President Joe Biden released his budget for fiscal year 2024, which begins Oct. 1, 2023. The budget includes the tax-focused “General Explanations of the Administration’s Fiscal Year 2024 Revenue Proposals” (Green Book). The budget is being positioned as a deficit-reduction plan and includes significant tax increases on corporations and the wealthy.
A president’s budget is viewed as an opening bid for negotiations with Congress. However, given the current partisan discord and focus on nontax legislative priorities, including addressing the debt ceiling, this year’s budget is more likely a preview of the president’s priorities for his expected reelection bid than a realistic starting point for discussions with Congress.
Many of the tax provisions in the fiscal year 2024 Green Book are carryovers from the fiscal year 2023 Green Book. New provisions include an increase in the corporate stock repurchase excise tax from 1% to 4%, a revival of several key international tax provisions from the Build Back Better Act, and a few others to better align with Pillar 1 and Pillar 2 of the Organization for Economic Cooperation and Development (OECD) framework. The fiscal year 2024 budget also includes an increase in the IRS’ annual appropriation and provides funding for IRS enforcement and compliance efforts for fiscal years 2032 and 2033, as the $80 billion multiyear funding the IRS received under the Inflation Reduction Act of 2022 runs through fiscal year 2031.
The release of the president’s fiscal year 2024 budget does not change the fact that significant tax legislation is unlikely to get enacted this year. However, Congress still is considering tax legislation this session, including:
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