The proposal, which will be made public on Monday, could be the last item on Biden’s legislative agenda as Democrats face the prospect of losing control of Congress in the upcoming midterm elections. Mr Biden plans to ask Congress to help his government address some of the biggest concerns facing voters, including the surge in inflation that has eroded consumer confidence and contributed to a general sense of financial distress. A senior government official said the president’s budget would propose policies “that would reduce energy, healthcare, childcare and other family costs”, although it was unclear what exactly the White House would propose. The budget will also seek additional funding to help combat the international crisis created by Russia’s invasion of Ukraine, which threatens to slow the global economy. Mr Biden will ask for $ 813.3 billion in national security spending, an increase of $ 31 billion, or 4 percent, from 2022, according to those familiar with the proposal. Funding for the Department of Defense will also include $ 4.1 billion for research and defense capabilities, nearly $ 5 billion for a space missile warning system to detect global threats, and nearly $ 2 billion for a missile defense system. to protect the United States from ballistic missiles threatened by states such as North Korea and Iran. The budget, which is merely a request to Congress and is not binding, will also provide information on how the government plans to promote the spending and tax priorities contained in Biden’s Build Back plan. Better, which had to be reduced last year. amid resistance from moderate Democrats such as West Virginia Sen. Joe Manchin III. It is unclear whether the president’s budget proposal will merely outline the government’s policy priorities or include a plan to get his agenda through a slim majority in Congress. A White House official said the budget would reflect Biden’s speech on the state of the Union, which focused mainly on the Russian invasion of Ukraine, and listed his domestic policy proposals without mentioning the Build Back Better label. which some in the White House see as an obstacle to negotiations. “You’re trying to use a budget to point out how you’re negotiating to really get something done, while also basically saying what we truly believe,” said Jason Furman, an economist at Harvard University and an economist in the former Obama administration. advisor. “And the difficult thing is that the challenge is always how to connect the two.” The White House will propose for the first time to give its own distinct flow of funding to medical veterans’ cases. The government plans to use the budget proposal to send a message to Congress that funding for veterans deserves the same sense of urgency as investing in national security, according to officials familiar with the matter. The proposal also aims to reduce federal deficits by a total of more than $ 1 trillion over the next decade, according to a White House document released Saturday. As part of this plan, the budget will outline a minimum tax for billionaires, which would require US households worth more than $ 100 million to pay at least 20% of their income as well as unrealized cash gains. their assets. , such as stocks and bonds, which can accumulate value for years but are only taxed when sold. This revenue could also be directed to the wider agenda of the president. Cecilia Rose, chairwoman of the White House Financial Advisory Board, said last week that Biden still wants to invest in improving access to childcare, prescription drugs and healthcare, as well as combating climate change. to add to the federal deficit. “The president is not just looking to make this kind of investment as an incentive, which means they are financed by the deficit, but he is committed to reducing the deficit along the way,” Rouse told a conference of the National Association for Business Economics. . “And that will be reflected in his budget.” Economists will also monitor the White House forecast for economic growth and inflation, which is at its highest level in 40 years. Forecasts could also have political implications. “Very low estimate for inflation and will not be credible, but very high and will become political ammunition for Republicans,” Beacon Policy Advisors analysts wrote in a note to clients. Finance Minister Janet L. Yellen acknowledged on Friday that the global economy was heading in the opposite direction and that Russia’s invasion of Ukraine could boost inflationary pressures around the world on energy and food prices. However, he predicted that the US economy would remain in good shape despite these concerns. “The growth over the last year has been excellent. “Job creation remains very high,” Yellen told CNBC. “When you look at the balance sheet of the typical American family, they are in very good shape.”
