Biden Releases Budget, includes Tax Increases that won’t Become Law

March 9, 2023

President Joe Biden delivered to Congress on March 9th his budget request that includes tax increases that are highly unlikely to pass in the current Congress.  

Those tax increases include:

  • Increasing the top marginal income tax rate to 39.6 percent for single filers making more than $400,000 a year and married couples making more than $450,000 per year;
  • Raising the corporate income tax rate to 28 percent;
  • Preventing basis shifting by related parties through partnerships;
  • Preventing excessive accumulations by high-income taxpayers in tax-favored retirement accounts;
  • Taxing carried (profits) interests as ordinary income;
  • Repealing the deferral of gain from like-kind exchange;

A link to these tax provisions (and more) is here.

Republicans control the House of Representatives and have vowed to not pass legislation that increases taxes. Legislation cannot become law if it does not pass the House.

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