Earlier this month, the Treasury Department released its “General Explanations of the Administration’s Fiscal Year 2015 Revenue Proposals,” commonly known as the “Green Book.” This alert describes what the Green Book is, the role it plays in the budget process, and why it is important to know what is in it. Brief descriptions of each of the Administration’s proposals and a table comparing the 2014 and 2015 proposals are also included for easy reference.

What is the Green Book?

The Green Book is a compilation of the tax proposals in the Administration’s budget and also includes a brief explanation of each proposal and its estimated revenue effect. It is called the Green Book because it literally has a green cover. The annual Green Book is important because it identifies the President’s tax policy priorities and provides a menu of potential revenue raisers that Congress may consider and adopt. As in recent years, the FY 2015 Green Book also reveals the Administration’s tax reform agenda.

While this year’s Green Book repeats many provisions seen in earlier years, several new proposals have been added with respect to international tax, energy, financial services, and tax administration. Changes in Green Book proposals reflect the evolution of political and policy priorities, enhanced development of issues, responses to stakeholder concerns, and, in the case of international proposals, the influence of tax policies developed by international organizations and other countries.