US: Joe Biden wants to put a 25% tax on the rich to reduce the deficit

The president of USA, Joe Bidenpresented the proposal on Thursday (9/3). budget of his government for the fiscal year 2024.

The Democratic president’s spending and revenue priorities will be key factors in upcoming negotiations with Republicans on raising the debt ceiling.

Biden promises social benefits and taxation of the richessentially announcing his campaign platform ahead of the 2024 presidential election. But analysts point out that many of these measures have no chance of being approved by Congress..

The 2024 budget foresees the reduction of the debt by about 3 trillion dollars over 10 years, as announced by the White House. To do this, the American president wants to introduce a 25% minimum tax on billionaires, i.e. the richest 0.01% of Americans.

He also recommends her increasing the corporate tax rate to 28%, up from 21% today. However, this percentage remains lower than the 35% that was the tax rate until Donald Trump’s tax reform in 2017.

At the same time, Biden wants to drastically reduce some “wasteful” spending, specifically targeting Big Pharma, the pharmaceutical sector, and Big Oil, the oil industry.

“My budget will require the wealthy to pay their fair share so that the millions of workers who contributed to the creation of this wealth can retirehaving the health insurance they paid for,” Biden himself said in a tweet.

The 80-year-old president, who has yet to formally announce his 2024 candidacy but appears to be already on the campaign trail, will present his proposal later today in Philadelphia, Pennsylvania, an electorally critical state.

The budget foresees expenditures amounting to 6.883 trillion. dollars and revenues of 5.036 trillion. for fiscal year 2024, which begins on October 1. This means that the deficit will rise to 1.846 trillion. It is also predicted that the annual deficit will exceed 1 trillion. dollars every year until 2033.

The White House also requests $842 billion for the defense budget, up from $816 billion this year. Border protection calls for a nearly $800 million increase in the Immigration and Customs Enforcement budget, bringing total funding to $25 billion.

As part of the effort to reduce costs, the government says that will promote initiatives to combat fraud in spending on programs implemented during the pandemic and other. Biden also wants to increase fines for companies that flout labor laws.

The American president believes that he can ensure for another 25 years the funding of the health insurance system that benefits Americans over 65, Medicare. He also plans to raise the wages of federal employees by 5 percent.

However, Biden should have no illusions about his ability to implement his proposals: since the beginning of the year he no longer controls the House of Representatives and Republicans say they are determined not to pass any tax increases.

The other confrontation between Democrats and Republicans is more pressing and concerns raising the debt limit. The US is the only industrial superpower in the world that is forced to seek the approval of its Congress to allow the government to increase its debt. This vote was for a long time something formal, but in recent years it has become highly politicized.

The head of the Parliament, Rep. Kevin McCarthy says his party won’t approve raising the debt ceiling as long as Biden does not hold back public spending.

The Democratic president is currently refusing to negotiate, believing that the debt that has accumulated over the years is the responsibility of both parties.

The stake is not insignificant: if the bra-de-fer is extended, the US will face the threat of a default from July, something that has never happened before.

The debt of the world’s largest economy reached 31.4 trillion on January 19. dollars and Treasury Secretary Janet Yellen announced at the time that she was activating emergency, temporary measures to keep government services open until July.