The budget includes some new items, such as (1) replacing the Base Erosion and Anti-avoidance Tax (BEAT) with part of the OECD Pillar Two rules, called the Undertaxed Payment Rule (UTPR), and (2) imposing a new minimum tax on wealthy individuals, called the "billionaire's tax." The budget also includes tax provisions that fell out of the House-passed BBBA due to opposition in Congress, including:
- Raising the corporate tax rate to 28%
- Increasing the top marginal income tax rate (to 39. 6%) for high earners
- Reforming the taxation of capital income to tax capital gains of high earners at ordinary income rates
- Taxing carried interests as ordinary income
- Repealing deferral of gain from like-kind exchanges
Other budget proposals seek to modernize rules for reporting on digital assets, including cryptocurrency, primarily by adding these types of assets to the scope of existing reporting requirements, cut benefits for fossil fuel producers and make changes to insurance tax provisions.
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