On May 28, 2021, the Biden Administration introduced its proposed $6 trillion fiscal year 2022 budget, which focuses heavily on infrastructure investments, clean energy initiatives, and potential tax changes affecting both corporations and individuals. The Journal of Accountancy recently published a comprehensive overview on how this proposed budget would affect taxes.

These tax items include proposals to raise the corporate tax rate to 28% from its current 21% and increasing the top marginal income tax rate for high earners from 37% to 39.6% (for taxpayers with taxable income over $509,300 for married taxpayers filing jointly and over $452,700 for single filers). The proposal would limit the deferral of gain from like-kind exchanges and make permanent previously temporary changes to an assortment of tax credits, including the expansion of the earned income tax credit (EITC) for workers without qualifying children and extending ARPA’s child tax credit increase, amongst other changes.

To learn more about how the proposed budget would affect you and your business, read the full Journal of Accountancy article or contact us to learn about your options.