First modification:
The deficit reduction target is higher than the $2 trillion Biden had promised in his State of the Union address last month. He also means further friction with Republicans in the House of Representatives, who have called for a path to a balanced budget.
The president of the United States, Joe Biden, presented his plans for public spending and tax increases – for the richest – in Pennsylvania to reveal his program for his foreseeable re-election in 2024.
In a speech at a Philadelphia union, Biden challenged Republicans on fiscal responsibility, outlining their plans to cut the US deficit by nearly $3 trillion over 10 years by betting on higher taxes on which they earn more than $400,000 a year.
The budget would increase federal spending to $6.8 trillion, up from the $6.2 trillion expected to be spent in the current fiscal year. “For too long, working people have been racking their brains, the economy has left them behind, working people like you, while those at the top get away with everything,” Biden said.
Biden’s budget offer will face stiff opposition from Republican lawmakers, who won control of the House of Representatives in November’s midterm elections. It is unlikely that much of his program will pass this Congress.
“I want to make it clear that I am willing to meet with the speaker of the Chamber at any time, tomorrow, if you have your budget. Present it, tell me what you want to do. I will show you what I want to do, see what we can agree on deal,” Biden said.
Asked about areas of possible compromise with the Republicans, the president told reporters at the White House: “We’ll see what his budget is.” His message to Republicans who say the budget is dead on his arrival was: “Watch me.”
Republican House Speaker Kevin McCarthy and other Republicans called Biden’s budget plan “reckless.” The president intends to finance more spending and reduce the deficit by imposing a minimum 25% tax on billionaires and nearly doubling the capital gains tax from 20%.
Biden is looking to quadruple the 1% tax on share buybacks, something that would make the investors he would need to tap to finance any re-election campaign uncomfortable.
The measures would roll back some tax breaks for businesses enacted in 2017 under former Republican President Donald Trump.
What does the budget include?
– Expand the ability of Medicare to negotiate the prices of pharmaceutical drugs, with an estimated spending cut of 160,000 million dollars in a decade.
– Auction the rights of the radio spectrum, which would generate 50,000 million dollars.
– Take steps to reduce identity theft and unemployment insurance fraud.
– Attack insurance companies that overcharge Medicaid, with an expected saving of $20 billion through government reimbursements.
– End $31 billion worth of subsidies to oil and gas companies.
– Eliminate a $19 billion tax break for real estate investors.
The proposal comes at a sensitive time, with the US economy suffering from high inflation. The government is likely to exhaust its emergency measures to keep Washington running, posing a risk of default.
With AP and Reuters
