Biden to Unveil Budget That Hikes Taxes, Increases Spending

By Andrea Shalal

WASHINGTON (Reuters)—U.S. On Thursday, President Joe Biden will visit Pennsylvania to announce a federal initiative. budget Plan laden with spending plans and higher taxes for the wealthy, which will serve as a template for his 2024 election bid.

Biden’s proposal, that resurrects items taken from last year’s sale budget Plan, which was defeated in the midterm election by Republicans in November, will face even more opposition from Congress in this year’s Congress.

The move is in direct opposition to Republican House Speaker Kevin McCarthy’s threat of blocking an increase to the federal borrowing limit at $31.4 trillion unless Biden reduces federal spending.

The Democratic President will speak at a Philadelphia union meeting to highlight his plans for reducing the country’s debt by almost $3 trillion in 10 years. He will raise taxes on people earning over $400,000 per year, and end corporate tax incentives that were enacted under former President Donald Trump.

Unauthorized to talk publicly, a White House official said that Biden’s vision was different from the one of Republicans. budget It would decrease the U.S.’s deficit and lower family costs.

According to the official, it proposes increasing taxes on large and wealthy corporations. “tackles wasteful special interest giveaways.”

Biden’s budget The White House official stated that the plan would fund higher outlays, close the deficit and impose a minimum 25% tax on billionaires. It also proposes to double the capital gains tax which is currently 20%. Biden said that the budget I propose to quadruple a 1% tax on stock buybacks, and go after wealthy individuals and corporations who don’t pay taxes.

Biden will pledge to safeguard Social Security and Medicare, Social Security and Medicaid for those making less than $400,000 per year. Biden will also offer help to families working in the United States by investing billions in childcare to reduce costs and provide free preschool to all 4 million children under 4. He promises increased rail safety.

White House officials claim that decreasing childcare costs will increase the economy and enable more women to go back to work. These proposals are also supported by strong numbers and may help Biden boost his low approval rating as he prepares to announce his candidacy for reelection.

Republicans claim that Biden’s first two years as president drove inflation to near 40-year-highs. They are now readying $150 billion to cut non-defense discretionary programs, including $25 billion to the Department Education.

Are there any common grounds? “Very little, very little,” Reuters spoke with Ben Cline, a Republican representative. “He doesn’t want to cut any spending, he just wants to raise taxes.”

(Reporting from Andrea Shalal & Trevor Hunnicutt. Additional reporting by David Morgan. Editing by Robert Birsel.