Biden budget plan would raise US taxes by $4.951 trillion over decade -Treasury
By David Lawder
WASHINGTON (Reuters) — President Joe Biden's proposed U.S. government budget would raise tax receipts by $4.951 trillion over 10 years, including more than $2.7 trillion in tax hikes on businesses and nearly $2 trillion on wealthy individuals and estates, the U.S. Treasury said on Monday.
The budget plan also calls for an additional $104.3 billion in mandatory funding for the Internal Revenue Service on top of $80 billion won by the tax agency in 2022, the Treasury said in its «Green Book» estimates of the budget's revenue effects.
This additional funding would add $341 billion in new revenues over the 10-year period compared with current funding, the Treasury said.
The tax increases are part of Biden's election-year budget wish list, which also includes new programs to assist low- and middle-income Americans with high housing and childcare costs and aims to cut the deficit. Congress is likely to discard the proposals, but the document forms a central campaign message for Biden.
PLUGGING SHORTFALLS
The Treasury estimated that reforms to international business taxation, driven by implementation of a 2021 global 15% minimum tax deal by 137 countries, would add $632.2 billion to U.S. receipts over 10 years. But even with the addition of a higher U.S. overseas minimum tax of 21%, this is well below last year's estimate of about $1.16 trillion.
A U.S. Treasury official told reporters the reduction was due to revised assumptions that fewer countries would adopt the minimum tax apart from Britain, Japan, the European Union, Mauritius and Vietnam.
The reduction was made up elsewhere, including through an increase in the domestic large-company minimum tax to 21% from 15%, which the Treasury estimates would raise
Read more on investing.com
