Biden's $7.3Tn Budget is Campaign Pitch for Spending, Tax Goals

• President Joe Biden outlined a $7.3Tn budget proposal as part of his vision for a potential second term, presenting it as a key tool for demonstrating his economic competency compared to his predecessor, Donald Trump.
• Biden proposes a significant tax increase, targeting corporations and high-income individuals to generate trillions in revenue. The goal is to address the budget deficit and finance new programs designed to assist lower-income individuals in managing challenges such as high housing and childcare costs.
• The 2025 fiscal year budget includes specific measures like raising the corporate income tax rate from 21.0% to 28.0%, instituting a minimum tax on individuals with wealth exceeding $100Mn, and allowing the government to negotiate drug costs.
• Additionally, the budget allocates funds for crucial social programs, such as reinstating child tax credits, supporting childcare initiatives, investing $258Bn in home construction, providing 12 weeks of paid family leave, and allocating resources to law enforcement.
• However, Republican House Speaker Mike Johnson swiftly rejects Biden's proposed budget, characterising it as reflective of an "insatiable appetite for reckless spending" and a "disregard for fiscal responsibility." This reflects the broader political divide on budgetary issues.
• Despite Biden's efforts to showcase his economic vision, public skepticism persists. According to a Reuters/Ipsos poll, 40.0% of Americans believe Trump would handle the economy better, compared to 31.0% favouring Biden.
• The proposed budget aims to raise tax receipts by $4.951Tn over a decade, with criticism from some quarters asserting that it falls short in addressing deficit and debt concerns, highlighting the ongoing political and economic challenges.

 (Source: Reuters)