President Biden is set to reveal his budget plan for the upcoming fiscal year on Monday, proposing tax hikes for major corporations and advocating for a minimum 25 percent tax rate for billionaires.
The proposed budget for fiscal 2025, as outlined by the White House, aims to slash the federal deficit by approximately $3 trillion over a decade primarily through increased taxation on the wealthiest Americans and corporate entities. Additionally, the budget seeks to tighten regulations on corporate profit distribution.
A spokesperson from the White House noted that the budget aims to decrease taxes for numerous low- and middle-income households, alongside initiatives to reduce the expenses associated with childcare, prescription medications, housing, and utilities.
Furthermore, the proposal includes provisions to fortify Medicare and Social Security, aligning with several other administration priorities such as allocating funds to combat climate change, support small businesses, implement national paid leave policies, and advance cancer research.
In many respects, the upcoming proposal mirrors last year’s budget put forth by the White House, which also targeted a $3 trillion deficit reduction, intensified taxes for billionaires, and heightened the Medicare tax for individuals earning over $400,000 annually.
Traditionally, budget requests do not translate directly into law, and Biden’s proposal will likely follow suit, given the Republican control in the House and the Democrats’ slim majority in the Senate.
However, the submission will hold significant weight in the discussions revolving around raising the debt ceiling and financing government operations this year. Additionally, it will serve as a pivotal messaging tool for the White House as Biden pursues reelection.
During his recent State of the Union address and subsequent campaign appearances in Pennsylvania and Georgia, the president highlighted his administration’s strides in deficit reduction, dismissing notions that former President Trump could effectively address the national debt.
Biden has consistently pledged to safeguard Medicare and Social Security, a cornerstone of his appeal to voters, adamantly stating his intention to veto any congressional endeavors aimed at reducing these programs.
Although Trump, presumed to be Biden’s adversary in the forthcoming election, has publicly declared his commitment to maintaining Social Security and Medicare, his budget proposals during his tenure featured reductions in these programs.
