September 12 2022

Biden Pushes for Tax Reform and Relief in Economic Blueprint

Source: IBFD Tax Research Platform News

US President Joe Biden has committed to push for further corporate tax reform and individual income tax relief in his administration's Economic Blueprint released on 9 September 2022. The US White House announced the release of the Economic Blue Print in a 9 September 2022 press release.

The Economic Blueprint includes a worker-centric tax reform as one of its pillars (see Note). Specifically, the President will push to reward work, rather than wealth, by:

  • permanently extending the expanded Child Tax Credit (CTC) and Earned Income Tax Credit (EITC);
  • making further structural reforms to the US Internal Revenue Code (IRS) to:
    • remove incentives to offshore jobs and profits;
    • meet the United States' obligations under the international global tax agreement;
    • close tax loopholes for the rich (including the Medicare tax loophole); and
    • return to pre-Tax Cuts and Jobs Act (TCJA) rates for taxpayers with income of more than USD 400,000;
    • closing the carried interest loophole;
    • ending the step-up in basis for taxpayers at the top; and
    • imposing a Billionaire Minimum Tax.

Note: The President's Economic Blueprint also includes the following as pillars:

  • empowering US workers;
  • making and building it in the United States;
  • giving US families breathing room; and
  • making the US industry more competitive, less concentrated and more resilient.