US President Joe Biden announced his game plan for his anticipated reelection campaign in 2024, outlining taxes increase on wealthy and raise spending in the swing state of Pennsylvania.
Proposal viewed as political rebuttal to Republican threat to block borrowing limit increase.
President Joseph Biden unveiled his budget plan at a speech on Thursday at the Finishing Trades Institute, a union hall in Northeast Philadelphia. ( Photo by https://www.inquirer.com/)
In the swing state of Pennsylvania, US President Joseph Biden revealed his ideas for increased government spending and higher taxes on the wealthiest in preparation for his anticipated 2024 reelection campaign.
President Joseph Biden has prioritized getting businesses to “pay their fair share” ever since his campaign, and if he decides to run again, this issue will certainly dominate his agenda.
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In Biden’s proposal, American households worth more than $100 million would be subject to a minimum 25% tax, more than tripling the current 8% rate paid by the wealthiest 0.01% of Americans.
The Inflation Reduction Act from the previous year authorized the new tax, which became effective on Jan. 1, and levies a 1% fee on all stock buybacks. Budget proposal from Biden asks for double it.
On Thursday, Joe Biden will present a multi-trillion dollar budget proposal, highlighting differences with Republicans on taxes, social programs, and defense in front of impending budgetary conflicts and the anticipated start of his re-election campaign. The annual suggestion comes as White House officials and the US president increasingly envision a conflict of economic ideologies as a defining characteristic of the US political environment over the coming months and leading up to the 2024 election. (Photo via https://www.ft.com/)
With a flurry of new and increased taxes targeted at the wealthiest Americans, President Joe Biden’s 2024 budget proposal pledges to reduce the deficit by $3 trillion over the next ten years.
Overall, the budget will result in an increase in federal spending of US$6.8 trillion (S$9.2 trillion) in the 12 months beginning in October.
Spending for the current fiscal year was US$6.2 trillion.
The Democratic President challenged his Republican rivals on fiscal responsibility during a speech on Thursday at a union hall in Philadelphia. He highlighted proposals to raise taxes on people making more than US$400,000 annually in order to reduce the US deficit by almost US$3 trillion over ten years.
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While those at the top get away with everything, working people like you have been breaking their necks for too long, Mr. Biden said to Pennsylvania blue-collar workers, a demographic he also targeted in his 2020 presidential campaign.
Republican senators vehemently oppose Mr. Biden’s budget proposal. It is improbable that this Congress will pass many of the items on his agenda.
Yet, the proposal is a political statement that rejects Republican House Speaker Kevin McCarthy’s vows to obstruct an increase in the US$31.4 trillion borrowing ceiling unless Mr. Biden agrees to cut back on government spending.
Joseph Biden ran for president on a platform of increasing taxes on the affluent and corporations. Yet whether or not Democrats win control of the Senate will have a significant impact on the outcome of Biden’s strategy. Richard Rubin of the WSJ explains. Picture: AFP/Bloomberg/Olivier Douliery
To be clear, I’m available to meet with the Speaker whenever he’d want, including tomorrow if he has his budget. Put it down and let me know what you want to do. As we try to reach an understanding, I’ll demonstrate what I want to do, Mr. Biden said.
Apart from its political subtext, the Biden budget makes one thing quite clear: the US population’s aging means that legally required social program spending will remain a long-term burden.
On Thursday, President Joe Biden delivered what could be considered his 2024 reelection speech on the state of the US economy. He outlined a budget proposal that would impose more taxes on the wealthy while promoting aid for Individuals in low-wage jobs. (Photo by https://sg.finance.yahoo.com/)
According to the US Census, one in five Americans will be retired or older by 2030.
Even if Mr. Biden is successful in getting his proposals for more taxes and cost-cutting measures, the budget anticipates annual deficits of more than US$1 trillion for the next ten years.
By 2033, the total US debt will be close to 11% of GDP, a level that is comparable to the heights reached when the nation was mobilizing for World War II.
The administration’s budget was created based on a modest 0.6% inflation-adjusted growth prediction for the current fiscal year. As the Federal Reserve implements a slowdown to combat inflation, it predicts that unemployment will rise to 4.6% in 2024. It also anticipated that by the following year, consumer prices will have decreased by about two-thirds from their current levels.
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The presumptions in each situation closely match the predictions of the economists surveyed by Refinitiv.
The budget did not go nearly far enough, according to Ms. Maya MacGuineas, president of the advocacy group Committee for a Responsible Federal Budget, to reduce the nation’s dangerously high levels of debt. “This is by no means a prize-winning budget when it comes to reducing the debt, but the President deserves at least a participation trophy,” she said.
Joe Biden delivers his budget plan in Philadelphia (Photo via https://www.theguardian.com/)
Republicans are already planning to eliminate $150 billion from discretionary non-defence programs, including roughly $25 billion from the Department of Education, as well as international aid and programs to prevent sexually transmitted illnesses. Over a ten-year period, they claim that will save US$1.5 trillion.
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