President Biden Releases FY2023 Proposed Budget

President Biden released the Administration’s FY2023 Budget with the U.S. Treasury Department also releasing the companion Green Book, a general explanation of the Administration’s revenue proposals. President Biden’s FY2023 budget proposes $5.8 trillion in spending, and notably includes increased funding for the IRS, specifically a 33% increase in Taxpayer Services, a 25% increase in Enforcement, and a 39% increase in information technology modernization. Additionally, the Department of Justice Antitrust Division would see a 49% increase in its budget. Other agencies with budget increases include the Department of Defense with an almost 6% increase and the Department of Education with an approximate 21% increase in funding. Regarding revenue proposals, the Biden Budget proposes a tax that would require the top 0.1% of earners (those with a net-worth of more than $100 million) to pay at least 20% in taxes on a combination of income and unrealized gains in assets like their stock portfolios. In the SEC’s 2023 congressional budget request Chairman Gary Gensler requested $2.149 billion for the agency in support of 5,261 positions and 4,808 full-time equivalents.

It is important to note that a President’s budget is a reflection of what their Administration’s priorities are rather than what is likely to be passed through Congress and ultimately signed by the President. In the coming months, the House and Senate Appropriations Committees will hold hearings on agencies’ proposed budgets with the goal of passing a budget by September 30. In prior years, a continuing resolution to fund the government is often needed to bridge the gap until a final budget is advanced.