US government budget proposal: Biden wants to raise taxes for the wealthy

US President Biden wants to impose higher taxes on the super-rich and corporations in the future. This emerged from his government’s budget project. But he has little chance of surviving a Republican-dominated Congress.

The US government under President Joe Biden has submitted its draft budget for the upcoming fiscal year. This includes plans to boost Social Security and health insurance and impose higher taxes on corporations and wealthy citizens.

According to the draft budget, anyone with assets over 100 million US dollars will have to pay a minimum tax rate of 25 percent in the future. Existing tax regulations allow for huge loopholes, which Democrats have criticized in the draft budget. Many wealthier Americans will pay lower tax rates than middle-class families.

In a speech in Philadelphia, Biden stressed that working people have “sacrificed their health” and “the economy has been left behind” for too long. “At the same time, those at the top got away with everything,” said the president. student:

Higher taxes for smaller deficits

According to the budget plans submitted, companies will also have to adjust to higher taxes. The Biden government wants to raise the corporate tax rate from the current 21 percent to 28 percent. Tax benefits for oil and gas companies will be eliminated in the future. “We should ask the richest and largest companies to pay their fair share,” Biden said.

With these tax increases for the wealthy and corporations, the government wants to reduce the budget deficit by about three trillion US dollars within ten years. Last year, the United States posted a deficit of $1.38 trillion. The draft for the new fiscal year, which begins in October, projects a deficit of $1.8 trillion — a higher amount than expected.

More support for Social Security and health insurance

In general, the next budget should include about 6.9 trillion dollars – for the current budget year, the volume is 6.2 trillion US dollars. Most of the money in the draft was earmarked to fund Social Security, public health insurance, and related programs.

This includes, for example, the Medicare public health insurance fund for people over 65 and people with disabilities. According to the US government, the health insurance company’s solvency will be insured for another 25 years. Experts are currently warning that Medicare can only remain solvent until 2028, AFP reports.

But the Biden government also wants to invest more in the defense sector. About $842 billion is planned for the Department of Defense in the draft budget – a record amount. About six billion US dollars has been allocated to support Ukraine, NATO and partner countries in Europe.

There is a risk of violent conflict with the Republicans

But the Biden government’s plans stand little chance of passing in its current form. In the US, Congress must approve the budget — and Democrats lost their majority on the committee at the mid-term last November.

So they count on compromises with opposition Republicans, and above all they push for cuts in government spending. Especially regarding the US debt ceiling of $31.38 trillion which was already reached in January.

Shortly after the budget bill was published, Republican Kevin McCarthy, Speaker of the US House of Representatives, opposed the budget, especially with regard to Biden’s tax plans. He warned, “Increasing taxes in a sluggish economy will only hurt us more and push us into recession.”

In response, the president asked McCarthy and his party to present their budget plans and said they were willing to talk. “Tell me what you want to do,” Biden said. “I’ll show you what I want to do and see what we can agree on.”