US President Joe Biden’s 2023 budget proposal includes increasing funding for security — both domestically and internationally — and reducing the deficit, the White House said Monday morning. But officials concede that inflation could continue to cause problems for the wider economy.
As Russia’s invasion of Ukraine continues, the proposed budget includes $6.9 billion for the European Deterrence Initiative and the North Atlantic Treaty Organization (NATO) and “fighting Russian aggression to support Ukraine”.
Biden is expected to talk about his budget proposal later on Monday.
Shalanda Young, director of the Office of Management and Budget, said that during what “will be a decisive decade for the world,” the proposal makes “one of the biggest investments in national security in U.S. history, strengthening our armed forces and leveraging our strength.” renewed at home to address urgent global challenges.”
To make investments and reduce the deficit, the budget calls for a new “minimum tax on billionaires” – which includes more than just billionaires and applies to anyone worth more than $100 million – that would ensure that 0.01% of wealthiest families paid at least “20 percent of their total income in federal income taxes.”
It also increases the tax that companies pay on profits and contains “additional measures to ensure that multinationals operating in the United States cannot use tax havens to lower the global minimum tax,” the White House said.
Cecilia Rouse, chair of the Council of Economic Advisers, told reporters that Biden’s policies would reduce the expected deficit in the current fiscal year 2022 to “$1.3 trillion (approximately R$6.2 trillion) lower than it was in the previous year.” fiscal year 21, and we believe the policies in this budget will further reduce the deficit by another trillion over the next decade.”
But much of that deficit reduction comes from temporary American Rescue Plan programs that are expiring.
“Going back, what this budget shows is that we can grow the economy from the bottom up and invest in the American people, and that we can do it in a smart and fiscally responsible way,” Young, director of the OMB, told reporters in a call on this Monday morning.
Officials say the inflation estimates reflected in the budget were set in November – before Russian President Vladimir Putin’s invasion of Ukraine, which crippled the economy and raised prices across the board.
“The invasion is likely to put upward pressure on energy and food prices which, in turn, could bolster inflation that was already a problem before the invasion due to pandemic supply chain restrictions and demand for goods,” said Rouse, Biden’s chief economist.
In a statement, Biden said the budget “includes historic deficit reduction, historic investments in our domestic and foreign security and an unprecedented commitment to building an economy where everyone has a chance to succeed.”
He also praised the deficit reduction as “the direct result of my government’s strategy to control the pandemic and grow the economy from the bottom up and from the middle out”.
Source: CNN Brasil
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