Biden proposes to increase taxes for the rich and increase social spending by 2024

President Joe Biden unveiled the 2024 budget this Thursday, in which he proposes record spending from 6.9 trillion dollarsincreasing collection through tax increases the richest and develop an ambitious social program, with an eye on working-class voters ahead of the upcoming presidential election. Now begins a period of negotiations between the White House and a divided Congress, in which Biden will have to make concessions to the Republicans in exchange for agreeing to increase the spending ceiling.

The President’s economic plan proposes raising social spending in paternity assistance, care for the elderly and the expansion of public health. In addition, it includes spending increases to cover sick leave and up to $100,000 million to reduce housing costs.

The tax proposal includes an increase taxes on large fortunes (establishes a minimum tax rate of 25% for income from assets of more than 100 million dollars), that of companies increases from 21% to 28%, the share buyback rate from 1% to 4%, and the taxation of profits obtained abroad from 10 .5% to 21%. In addition, it eliminates tax breaks promoted by Donald Trump in 2017.

Biden is looking reduce the deficit by $2.9 trillion over the next decade, despite the fact that, paradoxically, the increase in spending will add a 1.9 trillion deficit in public accounts. Unlike last year’s budgets, the White House estimates for economic growth are capped at 0.6 percent after adjusting for inflation.

Amidst the conflict with China and the war in Ukraine, Biden is calling for an extraordinary increasing the defense budget$824,000 million and $6,000 million for Kiev and strengthening the US alliance with NATO and its allies in Europe.

Republicans against

Biden will face a Republican Party that largely opposes his budget. The spokesman for the Republican majority in the House of Representatives, Kevin McCarthy, has already described “frivolous” suggestion and he emphasized that for him “Washington has a problem of spending, not collection”.

With the presented document, the Biden administration gives indications of what the president’s campaign will be like in 2024, although it has not yet announced whether he will run for re-election. The president’s plan seeks distance from the main Republican proposals, doing exactly what conservatives most vehemently oppose: increase taxes and increase administration and its benefits.