President Biden Unveils Budget With Record Spending, $2 Trillion Tax Hikes
By Bill Galluccio
March 9, 2023
President Joe Biden unveiled his 2024 budget proposal on Thursday (March 9). The budget aims to reduce the deficit by $3 trillion over the next ten years by raising taxes on businesses and wealthy Americans.
Biden's budget includes roughly $2 trillion in new taxes. Those taxes include a minimum 25% tax on billionaires, a 20% tax on the income and unrealized capital gains of households worth more than $100 million, and increasing the excise tax on stock buybacks from 1% to 4%.
The budget will also raise the corporate tax rate from 21% to 28% and increase the tax rates on foreign earnings to 21%. It would also eliminate some tax cuts that were put in place in 2017.
The White House said that the budget will shore up Social Security and Medicare while helping to provide Americans some "breathing room" amid rising inflation. The budget will expand the Child Tax Credit, create a paid family leave program that offers up to 12 weeks of leave, fund universal preschool and expand free community college. It also includes a proposal that would cap the prices of insulin products at $35 for a monthly prescription.
The budget also includes a peacetime record of $842 billion in funding for the Defense Department, including $6 billion earmarked to help Ukraine in its ongoing war with Russia.
The budget has no chance of passing the Republican-controlled House of Representatives. Instead, the budget will serve as the starting point for negotiations between Democrats and Republicans, who must also come up with a deal to lift the debt ceiling.