It may be doomed to fail in a Congress where Republicans control the House of Representatives, but president of the united states, Joe Biden and budget project Approval isn’t the only measure of success he’s presenting this Thursday.
This ambitious accounts. They continue the Democratic president’s efforts to transform the United States into a more just model economically and socially. They also serve as a presentation of the main message for a group. re-election campaign not yet officially announced but underestimated AND heavily focused tax increases for top earners for protect pensions and public health trying reduce the deficit, They put the ball in the Republican court. They have not yet submitted their own budget proposals, but general demands for brutal spending cuts they are bringing the US economy to the brink of a nervous breakdown as a condition for raising the debt ceiling.
The setting Biden chose for the presentation of his budget plan is neither accidental nor in doubt about his intentions: local union in Pennsylvania, one of the key hinge states in the election, for which he made some statements this afternoon. The content of the proposal also leaves no doubt about its objectives. Statement of Principles and in a way Declaration of war, Or at least war.
Because the White House knows you don’t have accounts. no election in congressBut there’s no point in discussing Biden’s ambition in detail, and for now generically highlighting the potential consequences of Republican ideas. And the beads are also read singly road map for the duel already open in the negotiations to raise the debt ceiling. While this ceiling has already been exceeded, the United States is fulfilling its obligations already committed by extraordinary measures taken from the Treasury. Those tools will get old. in a few months. And if an agreement is not reached, the US will not be able to meet its payments, which will result in an unprecedented situation in its history. a crisis with global consequences.
two ways
At a time when conservatives insist on reducing the government’s role, Biden budget will increase federal spending $6.8 trillion, Increasing items from defense to social programs.
According to the White House, however, one of the aspirations and demands of the Republicans would come true: current account deficit, especially reducing ttrillions of dollars over the next decade. And he would do it in the opposite way that conservatives prefer, making $5,000 million in 10 years. increase taxes on top incomes and corporations and an end to the tax cuts Donald Trump approved in 2017, which Republicans want to make permanent.
by the way i do Strengthens Social Security and Medicare, public health program for the elderly. While the few Republicans who made special offers to cut land have withdrawn them, the math conservatives it’s hard to live without them scraps the great one unpopular. In the document sent by the White House before Biden’s speech, they are attacked from that wing. “Until they come up with a plan, we can only look at a wide variety of past and present budgets, statements, and proposals that provide clear and consistent evidence that there will be vital programs at the cutting table that Americans rely on.”
Provocative is also an argument. internal tensions between the most moderate Republicans and the most extreme. And the ex-president is already using it. embersOn the way to 2024, it insists on promising to fully protect Social Security and Medicare. In this way, he preemptively points out differences against potential opponents in the primary, and especially with Florida governor Ron DeSantis, who he sees as his greatest threat and now guarantees that the Republican Party will not touch these programs. Congressman days backed cuts.
numbers
While they won’t see the light as they suggest, Biden’s budgets are getting their way. in terms of tax They would raise taxes from 37% to 39.6% for those entering more than $400,000.. They would also fix taxes on capital gains at 39.6% for those entering more than a million dollars and form a company. Minimum rate for billionaires is 25% (over the 20% it suggested last year).
corporate tax for companies will increase from 21% to 28%. But it would also quadruple from the current 1%. share repurchase lien. I also know they would abolish tax subsidies for gas and oiland it will close the financial gaps currently exploited by real estate, mutual funds or cryptocurrencies. Mining of the latter will also face a new tax.
At the same time, Biden is intensifying his commitment. social and environmental programs He said he was already trying to strengthen or launch the ‘Bring Back the Better’ program, a legislative initiative he had to dilute to garner the support of most conservative Democrats like Senator Joe Manchin for what became the Inflation Reduction Act. And accounts, for example, childcare, paid maternity leave, free preschool programsrelated to early education and aged carefor help living place or expand health aidpublic health system for the lowest-income people.
Biden also offered 5.2% increase in salary of federal civil servants. Upgrade to surpass $835,000 million for defense and include in your numbers 6 billion for aid to Ukraine.
republican response
As expected, The republicans attacked Biden’s suggestion immediately. Lower House leader Kevin McCarthy called it “absolute frivolity” “Washington has a spending problem, not an income problem,” he said in a tweet.