White House Committing to Raising Taxes in Biden’s Forthcoming Budget: Press Secretary

According to White House Press Secretary Karine Jean-Pierre, the Biden administration has committed to increasing taxes for rich Americans. President Joe Biden will propose his budget next week.

Speaking to reporters Wednesday, Jean-Pierre said that Biden’s budget is aimed at cutting the federal deficit by $3 trillion over the next decade and added it would propose “tax reforms to ensure the wealthy and large corporations pay their fair share while cutting wasteful spending on special interests like Big Oil and Big Pharma.”

Additionally, she criticized Trump’s tax-cutting focus by making forward “a really irresponsible piece of legislation that gave tax breaks to the wealthy, especially millionaires and billionaires,” adding, “That is something that we have had to deal with, and we really have to call out.”

The press secretary was likely referring to the 2017 Tax Cut and Jobs Act that slashed taxes for individuals and businesses, increased the standard deduction as well as family tax credits, reduced the Affordable Care Act’s individual mandate penalty to zero, and cut corporate rates to 21 percent. Some Republicans from Congress want those cuts to be maintained.

Jean-Pierre declined to discuss specific details about Biden’s budget plan during the press conference. She did say that the budget was designed to “[make] the wealthy and big corporations pay their fair share.”

She made these comments in response to queries about Biden’s Tuesday proposal to raise the Medicare tax rate to 3.8 percent from 5 percent for those households earning $400,000 annually or more. This tax hike would be applicable to both. “earned and unearned income” It is above $400,000.

“Since Medicare was passed, income and wealth inequality in the United States have increased dramatically. By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come,” The White House stated in statement This week.

Then, it added: “high-income” Americans are needed “to pay a 3.8 percent Medicare tax on all of their income, but some high-paid professionals and other wealthy business owners have managed to shield some of their income from tax by claiming it is neither earned income nor investment income,” The statement is correct.

According to the White House, Biden will reveal his entire budget on Thursday during a visit to Philadelphia.

Jean-Pierre spoke earlier this week. told Reporters were informed by Biden that he will not raise taxes for those earning less than $400,000 annually and won’t reduce Medicare or Social Security benefits. “The president … is proposing to do the following: increase the Medicare tax rate on income above $400,000; close loopholes in existing Medicare taxes; and give Medicare the power to negotiate lower prices for more prescription drugs,” Sie remarked.

Biden made his State of the Union Speech last month. indicated he would also propose a quadrupling of the stock buyback tax included in the Democrat-backed Inflation Reduction Act of 2022. It was passed. implemented 1.5% excise tax for stock buybacks of corporations

Republicans Response

Some Republicans claimed that the White House has made new promises about raising taxes for wealthy households. Biden’s budget must be approved by the House of Representatives. This is because Republicans control the House of Representatives.

“You know the president’s budget is replete with what they would do if they could—thank goodness the House is Republican—massive tax increases, more spending,” Senate Republican Leader Mitch McConnell (Ky.) told reporters.

Suggesting the budget bill is dead on arrival, McConnell added that “the American people can thank the Republican House” Proposed tax increases “will not see the light of day.”

“Americans are going to feel the pinch of higher taxes. Republicans passed the Tax Cuts and Jobs Act to lower income taxes for everyday Americans,” said Sen. John Kennedy (R-La.) “Pres. Biden wants to get rid of those tax cuts because he thinks you’re not paying your fair share.”

House Republicans had previously said that they wanted to make drastic cuts in the spending of Biden’s initiatives, and also extend Trump tax breaks. Jodey Arrington, Chair of the House of Representatives Budget Committee, told Reuters that Republicans have drafted a budget following the blueprint of Russell Vought’s budget proposal. Vought was Trump’s chief budget officer.

“It is consistent with what’s in his budget,” In an interview, Arrington stated this to the newswire. Arrington, the congressman whose party holds control of the House, didn’t give details about what cuts he suggested to fellow Republicans.

Kevin McCarthy, the House Speaker (Republican from California), has pledged not to permit an increase in $31.4 trillion federal borrowing limit without an agreement by Democrats in Congress.

This report was contributed by Reuters