WASHINGTON – President Joe Biden on Thursday unveiled a federal budget aimed at transforming the economy and setting the stage for an anticipated re-election campaign, bolstering the government’s social safety net with the wealthiest Americans. We have revived plans to increase taxes on corporations.
Spending and tax increases are unlikely to pass the Republican-controlled House, but the 2024 budget is at odds with Congressional Republicans over raising the nation’s debt ceiling to avert an economic crisis this summer. to establish Biden’s priorities.
The White House asked Republicans to indicate which programs they wanted to cut as Biden announced an extension proposal Medicare solvencywhich funds paid family leave in the country and subsidizes childcare and free community colleges for many low-income students.
Biden’s budget for next fiscal year is $6.9 trillion, which is 8% more than this year’s budget, with a 3.2% increase in the Pentagon’s budget and a 6% increase in non-defense discretionary spending. Businesses and Americans making at least $400,000. The budget will increase his mandatory spending on programs like Medicare, Medicare, and Social Security by 3.2%.
more:President Biden’s 2024 budget has been announced. Increase taxes on the wealthy and reduce the national deficit.live update
Here are 5 points:
$5 Trillion New Taxes, Including New Billionaire Taxes
Biden’s budget will revive several proposals for tax increases on businesses and the richest Americans that Biden failed to pass amid Republican opposition in Congress. popular with the sect.
The budget includes about $5 trillion in new taxes over 10 years. A major proposal is a billionaire minimum tax, requiring her 0.01% of the richest American to pay at least 25% of her income, including her assessed assets. This is higher than the 20% minimum tax rate for billionaires that Mr. Biden proposed last year.
“Billionaires should not pay a lower tax rate than schoolteachers and firefighters,” Biden said in a statement accompanying the 182-page budget document.
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Biden also wants to repeal former President Donald Trump’s tax cuts for the richest Americans by returning the tax rate to 39.6% for singles earning $400,000 or more and for married couples earning $450,000 or more. there is Biden proposed taxing capital gains at the same rate as wage income for Americans earning at least $1 million.
This budget will do away with Trump’s 2017 tax cut that lowered the rate companies pay on profits to 10% and set the tax rate at 28%, still below the 35% before 2017.
Other changes include a new tax on corporate stock buybacks quadrupled, the tax rate for US multinationals doubled from 10.5% to 21%, and the Medicare tax rate for high-income earners increased from 3.8% to 5%. included.
move away from the Republican Party to tackle the deficit controversy
By increasing taxes instead of Republican-backed spending cuts, Biden’s budget would cut the deficit by $2.9 trillion over the next decade.
The White House is trying to keep the deficit controversy away from Republicans.
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Not coincidentally, the projected deficit reduction is roughly in line with the $3 trillion the White House projects that Republican tax cuts will add to the deficit over the next decade.
“I will always be financially responsible to execute on our plans,” said Shalanda Young, director of the White House Office of Management and Budget.
Another Biden proposal seeks to save $160 billion by targeting “wasteful spending by Big Pharma.” His plan is to expand the number of drugs Medicare can choose to negotiate as a result of the president’s Inflation Reduction Act, which was approved last year.
House Speaker Kevin McCarthy and other Republican lawmakers are pushing spending cuts in a package to raise the debt ceiling, but they’re trying to reach their goal of closing the deficit without raising taxes within a decade. You haven’t specified which program you want to target.
“If they say they want to cut the deficit, but their plan is to explode the deficit, how are they going to make the math work?” Biden explained the budget in a speech in Philadelphia. bottom. “What are they going to cut?”
Mr Biden said he was ready to meet with Mr McCarthy “anytime tomorrow” if he had the budget. “Hey, tell me what you want to do. I’ll show you what I want to do.”
Plans for Medicare Payability, Not Social Security
Biden, who has repeatedly accused Republicans of wanting cuts to Medicare and Social Security, has plans in the budget to extend Medicare’s ability to pay beyond 2050.
But he doesn’t have a similar strategy to address the funding shortfalls Social Security faces, instead pledging to protect programs for the disabled and the elderly from future cuts. .
Both programs are major contributors to the national deficit, which is expected to increase by $19 trillion over the next decade.
more:Biden’s budget proposal raises Medicare taxes for Americans earning $400,000 or more
To ensure Medicare is funded for the next 25 years, Biden’s budget proposes using the proceeds from the Medicare tax rate hike to bolster Medicare’s hospital insurance fund. He also wants to expand the net investment income tax to cover more types of income and help fund Medicare.
On Social Security, Biden’s budget proposes $1.4 billion for Social Security staff and information technology, but does not overhaul taxes to allow the program to settle.
Young said Republicans were the “greatest threat” to Social Security and argued that the president’s budget protects the program through budget cuts.
Child Care, Paid Vacation, and More on Biden’s Stalled ‘Building Better’ Agenda
Biden’s budget includes proposals for the nation’s paid family and medical leave, subsidized childcare, expanded community colleges, and other areas that failed to pass as part of his national agenda, Build Back Better. is resurfaced.
While each would represent a dramatic expansion of the government’s social safety net, these proposals were not the only ones in the Senate during Biden’s first two years of presidency, even when Democrats dominated the House. It was not possible to gather support.
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The plan, already dead by the time it reaches the Republican-controlled House of Representatives, appears to contrast with Republicans who want to cut government spending.
Biden’s national paid leave plan gives workers up to 12 weeks of time off to care for a new child, care for a sick loved one, recover from an illness or other emergency, or mourn the death of a loved one. .
This budget provides federal funding to states to increase parenting options for more than 16 million children. It also plans to provide federal funds to the state to provide universal, free preschool for a 3-year-old and her 4-year-old.
With Build Back Better, Biden offered a tuition-free community college. His new budget doesn’t go far, but he offers free community colleges to families with incomes under $125,000, enrolled in historically black colleges, tribal-controlled colleges, and institutions that serve minorities. doing.
Other proposals in the Biden budget include restoring the child tax credit from Biden’s America bailout plan, expanding federal funding for affordable housing and rental assistance, and contributing $150 billion to Medicaid over 10 years. Provide new funding, limit insulin costs to $35 for all Americans, and reduce energy costs.For low-income Americans.
Highlighting climate change and microchips
Biden’s budget doubles down on his administration’s efforts to increase domestic manufacturing in a “green” economy and make the US a leader in microchip production.
The budget includes $21 billion in discretionary funding to support activities authorized by the CHIPS in Science Act, which passed last year with bipartisan support, allowing microchip companies to provide incentives to expand their business in the United States.
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To appeal to blue-collar Americans, Biden has talked about turning depleted factory towns in the Midwest into new centers for microchip production to help America catch up with China.
The budget provides a record $210 billion for federal research and development in science, technology, and calling, and to create a new laboratory within the National Institute of Standards and Technology Services, dedicated to the domestic production of technology. Provides $75 million.
To address climate change, the budget includes $1.2 billion to help decarbonize the Department of Energy’s industries. $5 billion for the Environmental Protection Agency to reduce greenhouse gas emissions and build resilience to the impacts of extreme weather. $16.5 billion for innovation in climate science and clean energy.
The White House said it would help meet Biden’s goal of cutting greenhouse gas emissions in half by 2030.
Reach out to Joey Garrison on Twitter @joeygarrison.