Biden’s budget plan: higher taxes on the rich, lower deficits

President Joe Biden is releasing a budget blueprint that seeks to tell voters what a diverse and sometimes fragmented Democratic Party stands for.

Bottom line: Biden is proposing a total of 8 5.8 trillion in federal spending for fiscal year 2023, beginning in October, slightly less than what was spent earlier this year before the bill was signed into law. The deficit will be $ 1.15 trillion.

The যাবে 795 billion for defense, $ 915 billion for domestic programs, and the remaining balance will be spent on compulsory spending, such as net interest on Social Security, Medicare, Medicaid, and national debt.

The higher taxes described on Monday would raise $ 361 billion in revenue in 10 years and would apply to the top 0.01% of households. The proposal raises another 1.4 trillion in revenue over the next decade through other tax increases to protect Biden’s promise not to raise taxes on those earning less than $ 400,000.

The 156-page plan also shows the potential gap between the surviving splinters in Biden’s alliance and the reality of what is being offered and what will eventually emerge. Biden supported many of these ideas without necessarily getting a full buy-in from Congress.

The proposal includes a minimum 20% tax on household income worth $ 100 million or more, a proposal similar to the one Democrats began debating in Congress late last year that failed to clear the Senate.

More money could go to law enforcement, but bipartisan efforts to reform police have failed. The budget estimates – with high levels of uncertainty based on last November’s forecast – that inflation at the 40-year high will return to normal next year.

“The budget is a statement of values,” Biden said in a statement, “and the budget I am releasing today sends a clear message that we value fiscal responsibility, security and safety in the country and around the world, and we need investment to continue to grow equitably.” Build a better America. “

It is a midterm election for a nation that is still unbalanced after years of turmoil caused by epidemics, economic recession, recovery, challenges to U.S. democracy, and the war in Ukraine. The Biden budget predicts an annual deficit of more than $ 1 trillion over the next decade. These reductions will be largely due to higher taxes and the expiration of relief costs associated with the coronavirus outbreak that began in 2020.

White House Budget Director Shalanda Young told reporters that the blueprint did not include line items attached to that potential bill because “negotiations with Congress are ongoing.” But the budget plan includes a “deficit-neutral reserve fund” to reach a possible agreement.

The Biden administration looked at tax increases last year that corresponded to a minimum of 20% of the total income of people valued at $ 100 million or more. But Manchin dismissed the notion as divisive. The Biden administration outlined Monday that it would raise 1 361 billion over 10 years and apply to the top 0.01% of households. The proposal lists another $ 1.4 trillion in revenue over the next decade through other tax changes.

Among the tax changes are an increase of both 28% corporate tax rate and 39.6% top personal rate.

Undergrading of the plan is a prediction that the economy will return to normal next year after the unprecedented costs associated with the epidemic and inflation. The budget forecasts inflation at 4.7% this year and 2.3% in 2023, down from 7% in 2021. Yet prices continue to rise in the first two months of 2022, and Russia’s invasion of Ukraine has pushed oil, gasoline and natural gas prices higher, which could spill over into the economy.

Cecilia Raus, chairwoman of the White House Council of Economic Advisers, said the administration expects “the economy to return to normal” as the country works through epidemic waves, eases supply chain pressures and “extraordinary measures” of support tied to the coronavirus role. Budget off. This normalization means that inflation will return to its normal level, “but there is a lot of uncertainty,” Rouse said.

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