President Joe Biden on Thursday unveiled his budget for fiscal year 2024, a sweeping blueprint that includes proposals to increase taxes on corporations and wealthy Americans, restore the expanded Child Tax Credit, increase defense spending and aim to cut the deficit by $3 trillion over a decade. Despite the ambitious spending plan, Biden’s budget has no chance of getting passed by Congress due to the Republican majority in the House.<\/p>\n
The budget Biden proposed details trillions of dollars in new federal spending programs, offset by tax increases on high earners and corporations. It includes a minimum billionaires tax, a higher corporate tax rate, and the expansion of the Net Investment Income Tax to apply to business income as well as investments, wages and self-employment income.[0]<\/a><\/sup> It also proposes raising the Medicare tax from the current rate of 3.8 percent to 5 percent for individuals making over $400,000 per year.<\/p>\n Furthermore, Biden is calling for tax cuts for low- and average-income people and the establishment of a national paid family and medical leave program that provides up to 12 weeks of leave for eligible employees to take time off to care for and bond with a new child, care for a seriously ill loved one, heal from their own serious illness, address circumstances arising from a loved one\u2019s military deployment, or find safety from domestic violence, sexual assault or stalking.[1]<\/a><\/sup> The budget also proposes a 5.2% raise for military pay, the largest boost since a 6.9% average military pay increase in 2002.[2]<\/a><\/sup> Taxes on large corporations, hedge fund managers, stock buybacks, and billionaires are also increased by this.[3]<\/a><\/sup><\/p>\n The budget calls for raising the Medicare tax on income above $400,000, closing a loophole that has shielded some from paying that levy and allow Medicare to negotiate more prescription drug prices, pouring about $200 billion in savings into the program. The administration said the budget would decrease the country\u2019s deficit by nearly $3 trillion over the next decade in part by proposing a new set of tax increases.[4]<\/a><\/sup><\/p>\n Republicans are hoping to extract spending cuts in exchange for raising the debt limit. It is said that spending is out of control.[5]<\/a><\/sup> Although there is support from both parties to reduce the deficit, Republicans will not agree to the tax increases proposed by President Biden’s 2024 budget plan.[6]<\/a><\/sup> Meanwhile, Biden has argued that previous GOP proposals show they might cut Medicare or Social Security.[7]<\/a><\/sup><\/p>\n 0. <\/span>“List of Tax Hikes in Biden’s Budget” Americans for Tax Reform, 9 Mar. 2023, https:\/\/www.atr.org\/list-of-tax-hikes-in-bidens-budget<\/a><\/p>\n 1. <\/span>“What’s in Biden’s budget” CNN, 9 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/09\/politics\/2024-budget-joe-biden-explainer\/index.html<\/a><\/p>\n 2. <\/span>“5.2% pay raise, blocking future Schedule F and more from the 2024 budget request” Federal News Network, 9 Mar. 2023, https:\/\/federalnewsnetwork.com\/budget\/2023\/03\/5-2-pay-raise-blocking-future-schedule-f-and-more-from-the-2024-budget-request\/<\/a><\/p>\n 3. <\/span>“Biden’s Budget Aims to Hit Republicans Where It Hurts” The New Republic, 10 Mar. 2023, https:\/\/newrepublic.com\/article\/171079\/bidens-budget-doomed-still-matters<\/a><\/p>\n 4. <\/span>“Biden seeks Pell increase, renews calls for free community college” Inside Higher Ed, 10 Mar. 2023, https:\/\/www.insidehighered.com\/news\/2023\/03\/10\/biden-seeks-pell-increase-renews-calls-free-community-college<\/a><\/p>\n 5. <\/span>“Here’s what’s in Biden’s 2024 budget plan” NPR, 9 Mar. 2023, https:\/\/www.npr.org\/2023\/03\/09\/1161967948\/biden-is-using-his-budget-as-a-cudgel-in-the-debt-ceiling-fight-and-for-2024<\/a><\/p>\n 6. <\/span>“15 budget asks that are actually Biden’s reelection pitch” POLITICO, 9 Mar. 2023, https:\/\/www.politico.com\/news\/2023\/03\/09\/biden-budget-reelection-campaign-00086452<\/a><\/p>\n