{"id":6364,"date":"2024-04-02T14:02:00","date_gmt":"2024-04-02T14:02:00","guid":{"rendered":"https:\/\/accoventure.com\/?p=6364"},"modified":"2024-05-10T15:41:21","modified_gmt":"2024-05-10T15:41:21","slug":"revenue-tax-proposals-2025","status":"publish","type":"post","link":"https:\/\/accoventure.com\/ja\/corporate-tax\/6364\/","title":{"rendered":"Revenue &#038; Tax Proposals FY 2025"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6364\" class=\"elementor elementor-6364\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-05c4e18 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"05c4e18\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2aa6249\" data-id=\"2aa6249\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e115907 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"e115907\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">The Biden administration has released its&nbsp;<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2024\/03\/budget_fy2025.pdf\" target=\"_blank\" rel=\"noopener\">2025 Budget Proposal<\/a>, outlining the president&#8217;s policy priorities and tax proposals in the next fiscal year from Apr 1, 2024, to Mar 31, 2025. U.S. Department of the Treasury also released the &#8220;Green book,&#8221; as an additional 256 pages for&nbsp;<a href=\"https:\/\/home.treasury.gov\/system\/files\/131\/General-Explanations-FY2025.pdf\" target=\"_blank\" rel=\"noopener\">General Explanations<\/a>&nbsp;providing further detail on the proposals.<\/span><\/p>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">The proposed budget continues to target taxes for corporations and high-net worth individuals, and in line with Biden&#8217;s prior statements, it does not raise taxes for individuals earnings less than $400,000 annually.&nbsp;<\/span><\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">While the proposals may not gain the necessary support from a Republican-controlled Congress, it is a pivotal time for tax policy, as many provisions of the 2017 Tax Cuts and Jobs Act will expire after 2025.<\/span><\/span><\/p>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">Follow the link for a brief review of the provisions of <a href=\"#\">Tax Cuts and Jobs Act 2017<\/a>.<\/span><\/span><\/p>\n<p><span style=\"color: #000000; font-family: Georgia, sans-serif; font-size: 1.5rem; font-weight: bold;\">Budget Proposal Main&nbsp;<\/span><span style=\"color: #000000; font-family: Georgia, sans-serif; font-size: 24px; font-weight: bold;\">Contents<\/span><span style=\"color: #000000; font-family: Georgia, sans-serif; font-size: 24px; font-weight: bold;\">&nbsp;<\/span><\/p>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Reform Business Taxation<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Reform International Taxation<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Strengthen Taxation of High-Income Taxpayers<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Support Workers, Families, and Economic Security<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Modify Estate and Gift Taxation<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Improve Tax Administration &amp;<\/span>&nbsp;Compliance<\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">At a high-level, the Revenue and Tax Proposals have a primary focus on (1) Corporation Income and Globalization, (2) Improving the Tax Administration and Compliance, and (3) Closing Loop \/ Improving the current policies. Reform for Business Income Tax and International Business has been a recurring theme for several years, while&nbsp;<\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">additional priorities have included Clean Energy, Small Business, Growth &amp; Job Creation, Infrastructure, etc.&nbsp;<\/span><\/span><br><b style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><br><\/b><b style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Corporations<\/b><\/div>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Proposals for US Corporations<\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Raise Corporate Income Tax from 21% to 28%<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Increase Corporate AMT tax to 21%<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Raise excise tax on corporate stock buyback from 1% to 4%<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Limit employee compensation deduction for employees earning greater than $1 million<\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><\/div>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">Proposals for International Tax<\/span><\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\"><br><\/span><\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\"><br><\/span><\/span><\/div>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Review of GILTI (combined taxation of non-US low-tax intangible income) and increase the GILTI tax rate from 10.5 to 21%<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Adopt Undertaxed Profits Rule (UTPR) and abolish BEAT (Base Erosion Abuse Tax), consistent with OECD Organisation of Economic Cooporation and Development minium-tax regime<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Replace FDII (Foreign Earned Intangible Income) Tax Deduction with other tax system to promote R&amp;D<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Reduce Section 245A dividend with respect to dividends from non-CFC foreign corporations<\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><span style=\"font-size: 18px; color: #54595f; font-family: Georgia, sans-serif; font-weight: var( --e-global-typography-text-font-weight );\">&nbsp;<\/span><\/div>\n<div>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px; font-weight: bolder;\">Individual Taxpayers<br><\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px; font-weight: var( --e-global-typography-text-font-weight );\">Proposals for High-Income Earners&nbsp;<br><\/span><\/p>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Increase the tax rate from 37% to 39.6% for the highest bracket<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Increase NIIT up to 5% and apply additional Medicare tax and NIIT for nonpassive business income<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Minimum tax for all gains for wealthy exceeding threshold<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Reform capital gain for high-income individuals to be taxed at ordinary income tax rate and unrealized capital gains at death above $5 million<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">&nbsp;&#8220;Billionaire minimum tax&#8221; 25% to tax unrealized capital gains of high-net-worth taxpayers<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Retirement Plan to limit the use of certain tax-favorable accounts, ie. in excess of $10 million. Additional reforms such as limiting backdoor Roth IRA conversions for higher earners.<\/span><\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><\/div>\n<\/div>\n<div>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px; font-weight: var( --e-global-typography-text-font-weight );\">Proposals that Support Workers, Families, and Economic Security<br><\/span><\/p>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Expand Child Tax Credit, Earned Income Tax Credit, and Adoption Tax Credit, by extending American Rescue Plan Act (ARPA) through 2025<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Make permanent for the Health Insurance Premium Tax Credit<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">First-Time home-buyer\/seller Tax Credit<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Income exclusion for forgiven student debt<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Protect Medicare and reduce prescription drug costs<\/span><\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><\/div>\n<div>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\"><b>Closing Loop \/ Improvement on Current Tax Policies<\/b><\/span><\/span><\/div>\n<div>&nbsp;<\/div>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Tax carried interests tax as ordinary income rather than lower capital gain rate<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Limit 1031 like-kind exchange to $500,000 in gains<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Reform to Partnerships including preventing basis shifting and tax administration of partnerships<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Eliminate Fossil Fuel tax preferences, drawbacks on petroleum taxes<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Additional policies for Digital Assets to include &#8212; Excise tax on Digital Asset mining, apply wash sale rules, reporting of digital assets by certain financial institutions and foreign digital assets, include mark-to-market rules for digital assets<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Tax Credit for areas of higher distress, low-income housing, neighborhood homes credit<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Reform for Unemployment Insurance<\/span><\/li>\n<\/ul>\n<\/div>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><\/div>\n<\/div>\n<p><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px; font-weight: bolder;\">Tax Administration &amp; Compliance<\/span><span style=\"color: #54595f; font-family: Georgia, sans-serif; font-size: 18px; font-weight: var( --e-global-typography-text-font-weight );\"><br><\/span><\/p>\n<ul>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Additional $104 billion IRS funding through 2034 in hope to collect on the $700 billion tax gap. Note that the IRS funding $80 billion from Inflation Reduction Act but was later reduced by $20 billion.<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\"><span style=\"font-weight: var( --e-global-typography-text-font-weight );\">Increase penalties for inaccurate or fraudulent tax returns with possibility of criminal charge, increase penalties and oversight of noncompliant preparers<\/span><\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Require employers tax withholding on nonqualified deferred compensation plans<\/li>\n<li style=\"list-style-position: inside; list-style-type: square; color: #54595f; font-family: Georgia, sans-serif; font-size: 18px;\">Increase compliance such as with listed transactions, expatriates, etc.<\/li>\n<\/ul>\n<div><span style=\"color: #54595f; font-family: Georgia, sans-serif;\"><span style=\"font-size: 18px;\">&nbsp;<\/span><\/span><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Tax Policy is a central issue during the current wavering economic conditions and the Presidential Race 2024.\u00a0While the budget proposals would need sufficient support to be passed by Congress, it is a pivotal time for tax policy as the provisions of 2017 Tax Cuts and Jobs Act will expire after 2025. <\/p>","protected":false},"author":1,"featured_media":6366,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[45,32,43,47],"tags":[],"class_list":["post-6364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-corporate-tax","category-featured","category-individual-tax"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/posts\/6364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/comments?post=6364"}],"version-history":[{"count":33,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/posts\/6364\/revisions"}],"predecessor-version":[{"id":6820,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/posts\/6364\/revisions\/6820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/media\/6366"}],"wp:attachment":[{"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/media?parent=6364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/categories?post=6364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accoventure.com\/ja\/wp-json\/wp\/v2\/tags?post=6364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}