Biden faces impossible budget math even with big tax hikes

PResidents Joe BidenThe budget proposal of, due to be released this week, will not come even close to balance or offering a viable route to stabilize the debt, despite his support for major tax increases on high-income earners.

The White House will release President Obama’s documents on Thursday budgetThis is not legislation, but a suggestion for consideration by Congress. It controls the purse strings, and sets out the priorities of the Administration.

Biden spoke of the number involved in his remarks, although it is not possible to provide specifics. State of the Union The budget proposal is expected to reduce deficits of $2 trillion in the next 10 years.

Biden and the nation face a problem: the accumulated deficits for the next 10 year are expected to reach about $20 trillion according to the Congressional Budget Office. latest projections. The debt, or the cumulative annual deficits, will rise to approximately 120% of the annual gross domestic product.

Biden pledged not to reduce Social Security and Medicare. This is because they are two of the major drivers for higher spending. Together, they account more than one third of all government spending.

Additionally, he has pledged to not increase taxes for anyone earning less than $400,000 per year.

These assurances leave little room to correct the imbalance between revenues and spending over the long term.

Biden will not attempt to balance the federal budget, as opposed to past congressional Republicans.

“The goal of balancing the budget over 10 years is unfortunately so far out of reach because our fiscal situation is so bad that perpetuating that as a goal just leaves us with unrealistic hopes and expectations,” Maya MacGuineas is the president of The Committee for a Responsible Federal Budget. This group supports deficit reduction.

The White House prepared Tuesday’s rollout of budget. unveiled a plan To prevent the insolvency the Medicare trust fund for hospital insurance will fail, the trustees of the program project that the trust fund’s assets will run out in 2028.

Biden’s proposal to increase drug pricing reforms would also raise payroll taxes for people earning over $400,000 in order to pay Medicare benefits. The proposal would specifically raise the Medicare tax rates for taxpayers who earn more than $400,000 annually from 3.8% 5% to 5%.

CONGRESSIONAL REBUKE AND LOOMING BIDEN VETO CEMENT ESG AS MAJOR POLITICAL CONFLICT

Although it is not known exactly how much tax increases would result, they would most likely raise hundreds of billions.

Republicans control the House of Repres and would resist this plan.