Treasury releases Greenbook, outlining FY 2025 revenue proposals

The U.S. Department of the Treasury recently released is so-called “Greenbook,” which is its General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals

The Greenbook explains the revenue proposals included in President Joe Biden’s budget. It outlines the tax proposals that seek to ensure that the wealthy and large corporations pay their fair share and reduce the deficit. Overall, the revenue proposals would generate roughly $3 trillion in additional deficit reduction over the next decade.

“President Biden’s budget proposal builds on America’s historic economic recovery by making fiscally responsible investments to grow the economy over the medium and long term and lowering costs for working families in key areas, including health care and housing,” U.S. Secretary of the Treasury Janet Yellen said. “The investments in the President’s budget are fully paid for, and the budget would reduce deficits by approximately $3 trillion through a combination of smart savings and tax proposals that ensure wealthy individuals and large corporations pay their fair share.”

Some of the revenue proposals in the Greenbook include:

• Implementing a global minimum tax that will ensure that all multinationals pay at least a 21 percent minimum rate on their earnings in each jurisdiction.
• Increasing the corporate minimum tax rate to 21 percent to align with the global minimum tax rate.
• Implementing a Billionaire Minimum Tax of 25 percent on the wealthiest taxpayers to ensure the top 0.01 percent pay taxes on their income as they go, just like everyone who earns a paycheck.
• Raising the tax rate on corporate stock buybacks from 1 percent to 4 percent to reduce the differential tax treatment between buybacks and dividends and encourage businesses to reinvest profits in their workers and in the company’s growth.
• Denying corporate tax deductions for employee compensation in excess of $1 million paid to any employee by both publicly and privately owned C corporations.
• Closing Medicare tax loopholes and extending solvency of the Medicare Trust Fund indefinitely by expanding the Net Investment Income Tax on income over $400,000 to cover all pass-through business income.
• Making permanent expanded tax credits for health insurance that were first enacted in the American Rescue Plan and extended in the Inflation Reduction Act.
• Expanding the Child Tax Credit and making it fully refundable and available in advance monthly, a more practical solution to ensure that families can receive relief when they need it most instead of in one lump sum at the end of the year.
• Expanding the Earned Income Tax Credit to cover more workers without children.
• Expanding and enhancing the Low-Income Housing Tax Credit, the largest federal incentive for affordable housing construction and rehabilitation.
• Closing the carried interest loophole that allows investment fund managers to reduce the taxes they owe on their earnings by characterizing them as investment gains rather than wages.
• Closing estate and gift tax loopholes that allow the wealthy to reduce their tax by using complicated trust arrangements to transfer their assets to their heirs.
• Closing life insurance loopholes that allow the wealthy to avoid tax on what are effectively customized investment products.

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