Joe Biden will release his fiscal year budget 2024, which includes significant tax increases for corporations and wealthy individuals, as well as cost cutting measures for families and increased investment in American manufacturing.
Biden will announce his budget plan on Thursday at the northeast Philadelphia Union Hall. This is expected to be an event that has the campaign feel.
A White House fact sheet was released ahead of the event and stated that the budget for the president will concentrate on four main areas.
The Taxes of Wealthy Corporates are Increasing
Biden’s budget proposal will reduce the federal deficit to $3 trillion in the next ten years, which is a much more ambitious goal than President Obama’s $1 trillion deficit reduction plan.
President Obama calls for higher taxes to be levied on ultra-rich corporations and individuals in order to pay for his spending plans. A minimum 25% tax for households with incomes over $100 million is what he calls for. Additionally, Trump’s tax cuts are partially repealed. The top rate for individuals will rise to 39.5 percent (from 37%) and the corporate rate to 28.0% (21%).
Budget also includes proposals to “reform the international tax system” The tax rate for foreign earnings of multinational U.S. companies has been raised to 21 percent, from 10.5 per cent.
The blueprint calls for quadrupling the 1 percent stock purchase tax that was in effect on January 1, which is what the White House claimed would happen. “address the continued tax advantage for buybacks and encourage corporations to invest in productivity and the broader economy.”
He calls for increased taxes on oil and gas companies and also proposes to lower them. “wasteful spending on big pharma, big oil, and other special interests, combats fraud, and makes programs more efficient.”
Reduced costs for families
The President proposes that the Child Tax Credit be restored, as it was created under the American Rescue Plan. According to the plan, credit for children 6 and over would increase from $2,000 per child to $3,000 and for those under 6, to $3,000. To make the credit fully refundable, it would also be fixed in the budget.
This plan proposes to lower prescription drug and health-care costs. The budget will invest $150 billion over a 10-year time period to expand and improve Medicaid home- and community-based programs. Additionally, $59 billion is included in the mandatory funding, as well tax cuts, that are intended to improve the supply of affordable housing.
“We’ve been encouraged by the recent slowdown in inflation, but we know there’s more work to do,” Shalanda, the director of Office of Management and Budget told journalists during a conference call on Thursday. “Families need a little breathing room, and that’s why the budget includes proposals to bring down the cost of everyday necessities and lowers healthcare costs.”
Biden, as previously mentioned, is also increasing the solvency of Medicare trust funds by at least 25 year without cutting benefits.
It includes $652 million to support American manufacturing growth. With the ultimate goal to increase investments in innovation, cutting-edge research and CHIPS activities authorized by Science Act, it also has nearly $21 billion for discretionary spending.
Budget aims to increase workforce skills by funding apprenticeships and training programs.
As part of this effort, the President also requested both mandatory and discretionary resources to help China compete economically.
Equity and Clean Energy Investing
In addition to $4.5 Billion in clean energy, the president’s budget proposes creating jobs in urban and rural areas. The president proposes that it will make “historic investments” His climate agenda is being advanced through science and research.
“The budget invests in reducing global warming pollution and achieving the president’s target to cut greenhouse gas emissions 50–52 percent by 2030,” According to the factsheet.
Biden’s efforts for “advance equity and environmental justice” The fact sheet also states that top priorities remain.
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