President Biden Proposes Budget with Tax Increases for Wealthy and Deficit Reduction

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President Joe Biden is set to reveal his budget for fiscal year 2025, focusing on tax hikes for large corporations and imposing a minimum 25% tax rate on billionaires. This plan, aimed at slashing the federal deficit by about $3 trillion over the next decade, primarily targets the richest Americans and businesses to balance the budget. The White House highlighted that the proposal would lower taxes for numerous low- and middle-income families and introduce measures to reduce costs in childcare, prescription drugs, housing, and utilities.

The budget encompasses efforts to fortify Medicare and Social Security, alongside initiatives supporting climate change action, small business funding, national paid leave, and cancer research. Reflecting the previous year’s objectives, this budget also seeks to elevate the Medicare tax for individuals earning above $400,000 annually.

Given the political landscape, with a Republican-led House and a slim Democratic majority in the Senate, Biden’s budget is unlikely to be enacted as presented. However, it sets a strategic foundation for upcoming debates on the debt ceiling and government funding. Additionally, it aligns with Biden’s reelection campaign messaging, emphasizing deficit reduction and the protection of key welfare programs against proposed cuts, contrasting his administration’s fiscal strategies with those of potential rival, former President Trump.