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US President Joe Biden presented his proposed budget for fiscal year 2024 on March 9 in Philadelphia, Pennsylvania. Beyond the economic aspect, it is above all a political message.
With our correspondent in Washington, Guillaume Naudin.
Philadelphia is a blue-collar city in a largely industrial state, Pennsylvania, which could decide the next election. In this carefully chosen environment, Joe Biden deployed the main aspects of his proposal: increased social and health benefits, new and more generous public policies. An additional expense, but also a reduction in the deficit.
To finance it, you have to find additional income. The president plans to seek them out among the wealthiest, with higher taxes for those who earn more than $400,000 a year, and among big business, with the aim of aiding oil companies and pharmaceutical giants.
make a difference
As it stands, this budget has no chance of passing in a partially Republican-controlled Congress. But the most important thing for the president, who is preparing a candidacy for a second term, is precisely to make a difference between him and his opponents. He has spent weeks accusing them of wanting to attack the health insurance of modest Americans and that has forced them to deny it.
Joe Biden now expects counterproposals. Because it will be necessary to discuss and find solutions, while avoiding a debt default that is coming. A catastrophe that could occur next summer if nothing is done.
reduce the deficit
“Instead of threatening default, which would be catastrophic, let’s address this issue and have a conversation about how to grow the economy at lower cost and reduce the deficit. I’ve outlined my budget. Republicans in Congress should do the same. So “We’ll be able to sit back and see where we disagree. My Republican friends say they want to cut the deficit, we’ve done the math on what they’ve proposed so far. And our math has quickly proven them wrong,” said Biden, who announced a plan to reduce the deficit by three trillion dollars over 10 years.
“My plan will reduce the deficit by three trillion dollars in 10 years. Based on what we know so far about your plan, it will increase the deficit by more than three trillion dollars in 10 years. If I’m wrong, prove me wrong. They want to cut taxes on the rich and big companies. But if they say they want to reduce the deficit and their plans trigger it, how do they do their accounts? Where are they going to save?”, stressed the US president.
