THE TAX FOUNDATION
Testimony time: Treasury Secretary Janet Yellen testified this week before the Senate Finance Committee and the House Ways and Means Committee on President Biden’s Fiscal Year 2023 Budget Proposals.
Inflation, clean energy, prescription drug pricing, semiconductors, and the global tax agreement were among some of the topics discussed.
By the numbers: Combined with the tax increases in the Build Back Better Act (BBBA), which the budget assumes becomes law, President Biden is proposing raising revenue by more than $4 trillion primarily from new taxes on U.S. businesses and individuals.
Keeping complexity to a minimum: The proposed budget creates several minimum taxes that would greatly increase complexity within the tax code.
As Tax Foundation's Daniel Bunn has emphasized, "Rather than introduce one new minimum tax after another, Congress should have the courage to fundamentally reform and strip away the complexity from our tax code.”
According to our model: The tax increases in BBBA alone would reduce long-run GDP by 0.5 percent and eliminate 125,000 jobs. The proposals would raise new government revenue at the cost of the economy, raising the tax burden on work, saving, and investment and putting us out of step with our competitors.
Under the proposed budget and BBBA, the U.S. would have the highest tax rates on individual and corporate rates in the developed world. See more.