The budget proposal for the financial year, which begins on October 1, sets out Biden’s priorities, including campaign promises to make the rich and companies pay more taxes. It’s just a wish list as lawmakers in the Capitol make the final decisions on budget matters. House Speaker Nancy Pelosi said Congress was looking forward to working on Biden’s “bold fiscal plan,” even as some fellow Democrats challenged Biden’s commitment to increase military spending. Biden’s plan drew immediate criticism from Republicans, who along with moderate Democrats killed similar tax proposals in the 2022 budget. Sign up now for FREE unlimited access to Reuters.com Register “The budget I am publishing today sends a clear message to the American people (about) what we value: first, fiscal responsibility, second, security and safety, and third … the investment needed to build a better America,” he said. Biden. journalists in the White House. The Democratic president said he was calling for higher defense spending to bolster the US military and “respond strongly to (Russian President Vladimir Putin) aggression against Ukraine” with $ 1 billion in additional US financial and humanitarian support. Security of Ukraine. The document, based on economic forecasts locked up before the war in Ukraine, offers a new insight into Biden’s thinking as he prepares for the November 8 by-elections, which could see his Democratic Party lose control of Congress. . read more Biden told reporters that his government was “making real progress by clearing out the fiscal chaos I inherited” and would cut the federal deficit by more than $ 1.3 trillion this year to $ 1 trillion in further cuts planned for the next decade. “For most Americans, the last few years have been very difficult, pushing them to the limit. “But billionaires and big companies have become richer than ever,” he said, adding: “This is not fair … Just pay your fair share.” The U.S. federal government, which expects to increase spending on health care and social spending, especially for older Americans, has spent more money than it has received in each of the past 20 years. “TREATMENT” PROCEDURE Democrat John Yarmouth, chairman of the House Budget Committee, predicted a “controversial” battle among Democrats over Biden’s call for big increases in the already mammoth U.S. military budget. Republicans said it did not significantly increase military spending. With a slim majority in House, Yarmouth warned that Democrats could lose no more than three to five votes within the party and approve a budget opposed by Republicans. Yarmuth said the whole process could be delayed again, as happened last year when Congress did not approve a budget until August, long after Parliament wrote the appropriations. Lindsay Graham, the top Republican on the Senate Budget Committee, said Biden tax increases would hurt U.S. workers and the economy as a whole, while widening deficits. According to Biden’s policies, deficits will fall to 5.8% of gross domestic product (GDP) this year and will remain below 5% for the next decade. That compares with 14.9% of GDP in 2020, the last year of the Trump administration, the White House said. The focus on deficit reduction reflects the concerns of Democratic Sen. Joe Manchin, whose expressed concerns about rising US debt have already blocked Biden’s vote on “Renew Better” last year. On the home front, Biden’s plan boosts policing spending, weapons crime efforts and invests heavily in crime prevention, while adding about $ 50 billion to address the critical shortage of affordable housing. The plan does not include line elements to enhance climate change, healthcare, education and the competitiveness of the construction industry, which were largely included in the “Better Back” bill. Instead, it has a deficit-neutral reserve to allow lawmakers to negotiate this data, said Shalanda Young, director of the Office of Management and Budget. TWO-TIME TAX It introduces a new minimum tax that requires the very rich to pay at least 20% of their income in taxes, including gains on investments that have not been sold. read more The tax will apply to 0.01 percent of U.S. households – those valued at more than $ 100 million – with more than half of the new revenue coming from households worth more than $ 1 billion, the White House said. It will reduce the government deficit by $ 360 billion over the next decade. The budget also targets U.S. corporate repurchases, requiring company executives to retain the company shares they receive for several years after a stock purchase. read more It would increase the corporate tax rate to 28%, while making changes to the corporate tax code to reward job creation and investment. It requires $ 773 billion for the Department of Defense, plus $ 40 billion for defense-related programs at the FBI, Department of Energy and other agencies. read more Russia’s invasion of Ukraine on February 24 has heightened European security concerns as the Biden government continues to invest in research and development of supersonic missiles and other modern capabilities. Sign up now for FREE unlimited access to Reuters.com Register Report by Trevor Hunnicutt and Andrea Shalal. Additional references by Mike Stone, David Lawder and Susan Heavey. Editing by Mark Porter, Heather Timmons, Bill Berkrot and Aurora Ellis Our role models: The Thomson Reuters Trust Principles.
