The Trump Administration on February 12 released a proposed $4.4 trillion FY 2019 federal budget that projects a $984 billion budget deficit, equal to 4.7 percent of GDP, for the new fiscal year beginning on October 1, 2018. The Administration also proposed an infrastructure plan that calls for $200 billion in new federal spending, to be combined with $1.3 trillion in new surface transportation funding to be provided by state and local governments and the private sector.
With the recent enactment of the 2017 tax reform act (P.L. 115-97), the Administration’s FY 2019 budget does not propose significant new tax legislation, and the Treasury Department is not issuing the traditional ‘Green Book’ detailing the President’s tax proposals. However, the FY 2019 budget does assume a ‘more realistic’ adjusted budget baseline that disregards the scheduled expiration in 2025 of the individual income and estate and gift tax provisions enacted as part of the 2017 legislation.