In his speech, Biden reiterated the main tenets of his budget plan, which were already known in advance. Biden has emphasized that he will not skimp on police forces or social and health programs like Medicaid and Medicare.
Convinced that Republican austerity proposals will not catch up with broad swaths of the population, Biden repeatedly called on Republicans in his speech to finally deliver their budget plans — especially where they wanted to save. Biden has repeatedly referred to them as “MAGA Republicans” and then as supporters of former President Donald Trump, whose slogan was and remains “Make America Great Again” (MAGA). Regarding his tax plans, Biden has emphasized that no one with an annual income of less than $400,000 will have to pay “even a dime” extra under his plan.
Biden’s multi-trillion budget proposal for 2024 includes deficit cuts, tax increases for the wealthy and corporations, and protection of Social Security benefits. As the White House announced Thursday, Biden wants to raise the corporate tax rate from the current 21 percent to 28 percent. In addition, the president wants to introduce a minimum tax rate of 25 percent for the super-rich with assets of more than $100 million (about 95 million euros).
Three trillion through higher taxes on the rich
This aims to reduce the budget deficit by nearly three trillion dollars over the next ten years. Eliminating tax exemptions for oil and gas companies as well as reducing overhead payments to pharmaceutical companies when purchasing medicines should also contribute to reducing the deficit.
At the same time, Biden wants to strengthen Medicare, the public health insurance company, for people over 65 and people with disabilities. Medicare should be guaranteed solvency for another 25 years. Experts warn that the health insurance fund may run out of money by 2028.
Biden’s 2024 budget totals nearly $6.9 trillion. Most of the money is allocated to Social Security, public health insurance, and similar programs. According to the Pentagon, $842 billion has been allocated to defense.
Wish list and selection program
However, Biden’s budget is more like a wish list of the president’s political priorities, and many projects are already doomed. Because in the United States, Congress decides the budget. With opposition Republicans holding a majority in the House of Representatives, Biden’s Democrats will have to look for compromises. Republicans want to advance their budget plans with an eye on spending cuts.
Biden is likely to try to politically exploit the budget dispute and accuse Republicans of being socially cold and close to big business and the wealthy. The president is expected to announce his candidacy for a second term in the foreseeable future.
McCarthy is against higher taxes on the rich
Republican House Speaker Kevin McCarthy has ruled out imposing new taxes. “Raising taxes in a period of stagnant economic growth will hurt us more and lead us into a recession,” he said shortly before Biden’s speech.
He addressed President McCarthy directly in Philadelphia: “I want to make it clear that I am ready at any time to meet with the Speaker of the House, including tomorrow.” McCarthy should submit his budget plans. “Tell me what you want to do. I’ll show you what I want to do and see what we can agree on.”
Last year, the United States recorded a budget deficit of $1.38 trillion. In January, the country officially reached its committed debt ceiling of $31.38 trillion. For months, Democrats and Republicans have been arguing about how to avoid an imminent bankruptcy of the country.
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