The Trump Administration today released its fiscal year (FY) 2020 budget proposal, entitled “A Budget for a Better America.” The budget contains the administration’s recommendations to Congress for spending and taxation for the fiscal year that begins on October 1, 2019.
Read the FY 2020 budget proposals [PDF 1.49 MB] as available on the White House website. [Note that a hyperlink within the FY 2020 budget to “Analytical Perspectives” currently links to the analysis for the FY 2019 budget. It is possible that additional information on the administration’s proposals might be released in the future.]
Very generally, the budget proposes to increase military spending, while cutting spending for domestic programs, including Medicare and Medicaid. It also proposes $8.6 billion for building sections of a wall on the U.S.-Mexico border.
As in the case of most presidential budgets, the current proposal can be viewed as opening negotiations with Congress.
The administration proposes $11.5 billion in base funding for the IRS. It also proposes legislation “enabling additional funding for new and continuing investments to expand and strengthen tax enforcement,” estimated to generate additional gross revenue of approximately $47 billion over 10 years.
The budget also references (without much detail) several other revenue-related proposals, including:
In some recent fiscal years, the Treasury Department has released an explanation of the tax proposals in the budget (known as the “Green Book”) the same day an administration transmitted its budget to Congress. The Treasury Department has not released a Green Book with respect to the Trump Administration’s FY 2020 budget proposals. Last year, the Trump Administration did not release a Green Book.
It is typical for presidential budget proposals to be accompanied by Analytical Perspectives for the fiscal year addressed by those budget proposals. Thus, Analytical Perspectives for the FY 2020 fiscal year (while not yet available) might be forthcoming. Although it is not certain, that analysis might contain additional recommendations for legislation, which potentially could address other revenue issues, such as the expiration of various provisions of the U.S. tax law enacted in December 2017 and often referred to as the “Tax Cuts and Jobs Act” (TCJA).
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