Jim Watson | AFP | Getty Images WASHINGTON – President Joe Biden’s federal budget for 2023, released Monday, proposes tax increases for the extremely rich and corporations, while providing billions of dollars in new spending to the Department of Defense and the Department of Justice. The bill, which was sent to Congress, calls for a reduction in the federal budget deficit of more than $ 1 trillion over the next 10 years. This is paid for, in part, by raising the corporate tax rate from 21% to 28%, a rate favored by the progressive Democrats but opposed by the key moderates. Biden also proposes a new 20% minimum tax for 0.01% with higher incomes and households worth more than $ 100 million. In a press conference Monday, White House officials blamed Biden’s economic policies for creating economic growth that was strong enough to justify cutting pandemic aid. As a result of lower pandemic safety net spending and higher tax revenues, the White House predicts that the 2022 budget deficit will be $ 1.3 trillion less than the 2021 deficit the Biden government reported Monday. as “the largest reduction ever made in a year. history of the country “. Overall, the budget for fiscal year 2023 shifts the focus away from the pandemic, which has receded after the huge Omicron wave at the end of last year. Please note that no pandemic emergency funds or additional funds are requested. In Covid’s position, the budget focuses on the need to tackle crime and public safety and the global threat posed by Russia’s invasion of Ukraine. Basic expenditure elements:
About $ 31 billion in new defense spending, which will raise total national defense spending to $ 813 billion. As part of this defense spending, $ 6.9 billion goes to NATO, European defense, Ukraine and countering Russian aggression, according to the White House. More than $ 32 billion in domestic crime spending, including more than $ 20.6 billion in the Department of Justice and another $ 3.2 billion in state and local law enforcement and police recruitment grants. About $ 10.6 billion for global health insurance, which includes Covid as well as future pandemics.
Key revenue growth factors:
Increase of the corporate tax rate from the current rate of 21% to 28%. Increase of the maximum tax scale to 39.6%. Impose a minimum tax of 20% on 0.01% of top incomes and households worth more than $ 100 million, the so-called “Minimum Billionaire Tax”. Abolish many tax exemptions for oil and gas producers and processors. Taxes transferred interest as regular income, closing the so-called “window of transferred interest”. End tax arrears on profits from similar exchanges.
The budget also serves as a plan for Democrats in Congress, who currently hold a small majority in House and Senate but face strong headwinds in the November midterm elections. For them, the budget contains little of everything. The progressives in the deep blue regions are likely to focus on Biden’s proposed tax increases and additional funding for the climate change budget. For moderate Democrats, the extra funding Biden is asking for in the Pentagon budget and police force is likely to be popular in their constituencies. The budget proposal came amid a series of new polls showing Biden facing some of the lowest acceptance rates ever. A new NBC News poll released Sunday found that only 40 percent of Americans approve of Biden’s presidency, with 55 percent disapproving. When asked who they blamed for high inflation, a higher percentage of Americans said they blamed Biden and his policies, 38%, than blamed the pandemic, 28%, or corporate price hikes, 23%.
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