Here’s what Biden’s budget would mean — if it had a chance
WASHINGTON — With Republicans in control of the House, there’s no chance that President Joe Biden’s new budget plan will become law as it stands. Instead, the financial blueprint that he announced Thursday in Philadelphia will serve as a political talking point for a president preparing to run for reelection.
Some of the highlights of Biden’s plan:
COVERS NEXT 10 YEARS
Biden’s budget covers the next 10 years. Overall, he expects an additional $4.7 trillion in tax revenues and $800 billion in savings from making changes to government programs. Biden also wants $2.6 trillion in new spending. That leaves him with an estimated $2.9 trillion reduction in the deficit.
MINIMUM TAX ON BILLIONAIRES
Biden frequently talks about making companies and the wealthy “pay their fair share,” and the budget is designed to further that goal.
The president wants a 25% tax on the richest 0.01% of Americans. The White House calls this a “minimum tax on billionaires.” Biden also wants to roll back tax breaks enacted under his predecessor, former President Donald Trump. For example, people making more than $400,000 a year would once again face a top tax rate of 39.6%.
MEDICARE FUNDING BOOSTED
A key trust fund that funds Medicare, which provides health care to older adults, is on track to become insolvent in about five years, meaning it would be unable to fully cover the cost of benefits. The White House says Biden’s plan would push that date back to the 2050s.
FULLY REFUNDABLE CHILD TAX CREDIT
Congress expanded the child tax credit during the pandemic to help families cope with the economic fallout, but the extra money expired last year. Now Biden wants to restore the credit to its previous level. The change would provide families up to $3,600 per child, up from $2,000.
REDUCTION OF CANCER DEATH RATES
Biden made fighting cancer part of the “unity agenda” that he outlined near the beginning of his administration, and he wants $2.8 billion to advance that goal.
Biden wants to reduce cancer death rates in half over the next quarter-century.
TACKLING CLIMATE CHANGE
Last year’s Inflation Reduction Act provided hundreds of billions of dollars in financial incentives to promote clean energy. Now Biden’s budget proposal would add more to the further the goal of reducing greenhouse gas emissions.
The plan includes $4.5 billion to further clean energy development and $16.5 billion to develop new technologies and conduct scientific research.
EYES ON CHINA
The Pentagon would receive $842 billion, which includes money to modernize the U.S. nuclear arsenal. There’s also a proposed 5.2% proposed pay increase for troops.