President Biden is set to propose a bold budget that includes tax increases on corporations and high earners, new spending on social programs, and initiatives to combat high consumer costs like housing and college tuition. The fiscal 2025 budget, while unlikely to pass this year due to Republican opposition, serves as a draft of Biden’s policy platform for his re-election campaign.
The budget aims to position Biden as a champion of increased government aid for workers, parents, manufacturers, retirees, and students, as well as a leader in the fight against climate change. To offset the cost of these priorities, Biden plans to raise taxes on large companies and the wealthy, drawing a clear distinction between his approach and that of his presumptive Republican opponent, former President Donald J. Trump.
During his State of the Union address, Biden emphasized the need for a fair tax code to invest in essential services like healthcare and education. Polls show dissatisfaction with Biden’s handling of the economy, but he remains committed to his economic-policy strategy, which includes raising taxes on businesses and the rich to reduce the budget deficit.
Key proposals in Biden’s budget include raising the corporate tax rate to 28 percent, increasing a new minimum tax on large corporations, and quadrupling a tax on stock buybacks. The budget also includes measures to reduce the deficit over the next decade, such as reinstating an expanded child tax credit and implementing a national program of paid leave for workers.
Despite criticism from Republicans and budget watchdogs, Biden is confident that his budget will not harm the economy. He plans to continue investing in new spending programs and targeted tax incentives to address pressing issues like high costs and income inequality. The budget also includes efforts to improve the solvency of Social Security and Medicare, focusing on raising taxes on high earners rather than cutting benefits.
