The White House has proposed a 15 percent increase in the Internal Revenue Service’s (IRS) budget for Fiscal Year 2024. The proposed increase would give the agency $16.3 billion in discretionary budget authority, with most of the funds directed towards enhancing customer service and outreach to underserved communities. The IRS budget includes a $642 million increase to improve the taxpayer experience and $290 million for information technology modernization.
The budget proposal also includes a range of tax policy highlights, which are intended to reduce the deficit by $1.17 trillion over the next decade. These include tax reforms to ensure that the wealthiest Americans and multinational corporations pay at least a minimum tax rate, as well as increasing the corporate income tax rate to 28 percent. The proposal also invests in working families by cutting taxes for working people and families with children, providing paid leave, and improving home care.
In addition, the budget proposal seeks to restore and make permanent the American Rescue Plan expansion of the Earned Income Tax Credit for workers without qualifying children. It also includes tax provisions such as providing a neighborhood homes credit, expanding and enhancing the low-income housing credit, expanding the child credit, making permanent the income exclusion for forgiven student debt, and making the adoption tax credit refundable.
The Greenbook, which outlines the administration’s revenue proposals for Fiscal Year 2024, provides further clarity on the tax policy proposals. This includes the implementation of a billionaire minimum tax of 25 percent, targeted at the wealthiest 0.01 percent of individuals, to ensure they are paying their fair share of taxes. The budget also proposes health-related tax policy changes, such as closing Medicare tax loopholes and expanding tax credits for health insurance premiums.