President Joe Biden revealed a budget proposal of $7.3 trillion. This comprehensive plan includes increased spending for security measures at the U.S.-Mexico border and the implementation of higher taxes targeting profitable corporations.
In response to political pressures from both sides of the spectrum during an election year, President Biden’s budget includes a provision of $2.9 billion for the Department of Homeland Security. This allocation aims to address the increasing number of asylum-seekers at the southern border. Additionally, the budget proposes a 21% corporate minimum tax and a higher surcharge on large publicly traded companies that engage in stock buybacks.
The White House is looking to safeguard and expand on the progress made during the Biden administration by presenting a new budget. Having spearheaded a robust economic recovery and achieved a highly productive legislative track record, President Biden aims to ensure that the middle class receives equitable opportunities and that no one is left behind.
The White House stated that the budget’s objective is to decrease the deficit by taking measures against fraud, reducing unnecessary expenses, and ensuring that the wealthy and corporations contribute their fair share.
The administration claims that the measure will not only pay for new investments but also reduce the deficit by $3 trillion over the next 10 years.
The proposal presented a stark contrast to the budget blueprint released by the Republican majority in the House of Representatives back in September. The House’s blueprint aimed to balance the budget by implementing $11 trillion in domestic spending cuts over a 10-year span, which included mandatory reductions of $8.7 trillion to programs like Medicare and Medicaid.
The Budget Committee of the chamber approved the measure last week in a party-line vote, even though it has little chance of passing the Democratic-controlled Senate.
House Republicans have claimed that Biden’s budget would impose $4.9 trillion in new taxes on “American families and producers.” They argue that instead of reducing the deficit, the budget would actually increase it by $18.2 trillion to $52.7 trillion by 2034.
Biden’s budget has been a subject of controversy, particularly regarding its handling of the ongoing concerns raised by the GOP about the security of the southern U.S. border.
The allocated $2.9 billion for Homeland Security includes funding to increase the number of border officials and asylum officers by more than 2,000 and 1,600, respectively. Additionally, there will be financial support to strengthen efforts in combating Mexican drug cartels and fentanyl traffickers.
The proposal is being put forward just a month after House Republicans, under the influence of likely GOP presidential candidate Donald Trump, turned down a bipartisan agreement that aimed to enhance border security and grant the president emergency authority to shut down the border during periods of increased migration.
The CDC announced that the funding would empower them to prioritize their efforts in quickly identifying and responding to health threats. It will also allow them to continue addressing mental health crises and drug overdoses while providing more targeted support for young families.
“The budget request highlights investments that will enhance our country’s capacity to effectively address and combat various health challenges, including infectious diseases and drug overdoses,” remarked CDC Director Mandy Cohen in a statement. She further emphasized the importance of investing in public health initiatives at the community level, ensuring that local areas have the necessary resources and skilled workforce to safeguard people’s well-being.”
The Food and Drug Administration will receive an additional $500 million in the new budget, bringing its total funding to $7.2 billion. This increased funding will be used to improve food safety and nutrition, enhance medical product safety, and bolster supply chain resiliency, as stated by FDA Commissioner Robert Califf.
“Our aim is to leverage this new funding request to not only enhance our achievements but also revamp our agency and operations for future advancements,” he emphasized, highlighting our initiatives to fortify the agency’s public health capacity, propel its IT capabilities, and enhance infrastructure across all sectors.”
During last week’s State of the Union address, Biden emphasized his support for reducing inequality by ensuring that profitable corporations and wealthy individuals pay their fair share of taxes.
According to the White House, the legislation passed by Republicans and signed by Trump in 2017 gave corporations a significant tax break. However, rather than benefiting workers, consumers, or communities as promised, this tax break primarily benefited shareholders and top executives.
Biden’s budget proposes a corporate tax rate of 28%, which is lower than the previous 35% rate set by the 2017 tax law. Additionally, the budget aims to increase the minimum tax rate for billion-dollar corporations from 15% to 21%. This move is aimed at ensuring that the largest corporations contribute their fair share in taxes.
The proposal also aims to address the issue of soaring executive pay by implementing a measure that denies tax deductions for any compensation exceeding $1 million. This approach seeks to discourage companies from providing their executives with excessive pay packages, thereby promoting a more equitable playing field across large corporations.
The budget, in the meantime, aims to address the ongoing tax advantage for buy-backs and incentivize corporations to invest in productivity and the broader economy by quadrupling the current stock buy-back surcharge from 1% to 4%.
In addition, the unrealized income of the wealthiest American households would be subject to a minimum tax rate of 25% under Biden’s proposal.
