President Joe Biden unveiled a ambitious $7.3 trillion federal budget for the 2025 fiscal year, aiming to make significant investments in various social programs while also reducing the deficit. The budget includes new initiatives for housing, health care, and child care, with plans to raise taxes on corporations and the wealthiest Americans in order to reduce the deficit by $3 trillion over the next decade.
The budget proposes increasing defense spending by 1% and non-defense discretionary spending by 2.4%, while also introducing tax hikes on billionaires and corporations to raise tax receipts by $4.9 trillion over the next decade. This includes raising the corporate tax rate to 28% from 21% and implementing a minimum tax on the largest billion-dollar corporations to 21%. Additionally, a new 25% minimum tax on the wealthiest 0.01% of Americans is also part of the proposal.
In an effort to extend the solvency of Medicare and ensure steady increases for Social Security, the budget also includes measures for border security, child tax credit expansion, affordable child care programs, mortgage relief credits, and initiatives to lower health care costs. However, the budget must now go to Congress for negotiation and is unlikely to pass in its current form due to Republican opposition to tax hikes and various other proposals.
Overall, President Biden’s budget represents a bold vision for the nation’s future, emphasizing investment in social programs while aiming to reduce the deficit through tax increases on corporations and the wealthy. The coming months will reveal how Congress responds to these ambitious proposals and whether any compromises can be reached to move the budget forward.
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