The Biden administration on Monday unveiled the president’s proposed budget for 2023, which totals more than $5.7 trillion in spending and includes a new tax on billionaires as the president seeks to trim the deficit going forward . In it, President Biden lays out his priorities for the coming year, which could be crucial for the midterm elections. This is the first step in the lengthy budget process and comes just weeks after Congress passed the omnibus spending bill for the remainder of 2022.
“My dad had an expression, he said, ‘Don’t tell me what you value. Show me your budget — I’ll tell you what you value,'” Mr. Biden said Monday. “Don’t tell me what you value – show me your budget and I’ll tell you what you value. Well, the budget I’m releasing today sends a clear message to the American people, which we value. First, financial responsibility. Second, security and third, investments needed to build a better America.
The president said his budget sends a “clear message that we value financial responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America.” In a remark Monday, Mr. Biden specifically criticized his predecessor’s “fiscal mismanagement” and said his administration was “reducing Trump deficits.”
Last year, the economy grew a record 5.7% as the US added more than 6.5 million jobs as the United States recovers from the coronavirus pandemic. But the country was hit by the fastest inflation in 40 years, with prices rising 7.9% year-on-year, and the national debt surpassed $30 trillion this year for the first time in history.
In the budget proposal, the Biden administration is calling for new spending it claims will boost economic growth and create jobs, while also calling for a raft of tax reforms. Overall, the Biden administration expects its budget to reduce the deficit by more than $1 trillion over the next decade.
As part of its efforts to reduce the deficit, the government is proposing a billionaire minimum income tax that would require households over $100 million to pay 20% of their total income per year. The government claims that this alone would reduce the deficit by $360 billion over a decade. The president is also calling for taxes on the top income bracket to be raised from 37 percent to 39.6 percent and the corporate tax rate to be raised from 21 percent to 28 percent, reversing some of President Trump’s tax laws.
As talks continue with Congress on Mr. Biden’s “Building a Better America” agenda, which includes priorities that were once part of the “Build Back Better Act.”Tackling climate change and cutting healthcare costs, the government is proposing tax reforms to meet those priorities and feed a reserve fund so payments for this legislation don’t increase the deficit.
“We have made it clear that the President wants to sign legislation that will lower family costs and reduce the deficit,” said Shalanda Young, director of the Office of Management and Budget.
The Biden administration projects the 2022 deficit to be $1.3 trillion lower than a year earlier — the largest one-year decline in U.S. history, which can be attributed to massive spending to combat the coronavirusand economic consequences.
Some of the proposed new spending would go towards crime reduction efforts, such as: B. $3.2 billion in discretionary funds for state and local law enforcement grants and $30 billion in mandatory support for law enforcement, crime prevention, and community policing.
“I’ve said it before — the answer isn’t to disappoint our police departments,” Biden said. “It’s about funding our police force and giving them all the tools they need — training and fundamentals, and partners and protectors that our communities need.”
The Biden administration is also focused on efforts to address affordable housing with a $50 billion housing construction and supply proposal to fill existing market gaps and help stabilize the housing market long-term.
How the US continues to facethat have helped drive up costs across the country, the president also wants to speed up the movement of goods through ports with $230 million for port development and $1.7 billion for the Harbor Maintenance Trust Fund. Mr. Biden is also targeting an additional $125 million to bolster domestic manufacturing. There’s also $200 million for new solar manufacturing.
While the US and its allies turn their focus to Russia for its invasion of Ukraine, the proposed budget also includes $6.9 billion for the European Deterrence Initiative, NATO and other efforts to counter Russian aggression. The budget also earmarks nearly $1 billion for the State Department, USAID and the Department of Defense to support Ukraine.
As the president’s proposal to tackle climate change stalled in the Build Back Better Act, the budget calls for several provisions to tackle climate change, including $3.3 billion for green energy projects, $18 billion for climate resilience programs in of the entire federal government and 11 billion US dollars of international climate finance, among others.
Efforts to pass the president’s budget will face challenges in Congress, where the Senate is split 50-50 and Democrats have a narrow majority in the House of Representatives.