Biden Unveils FY2024 Budget: $3 Trillion in Deficit Reductions Through Tax Increases, Spending Boosts

On Thursday, President Biden unveiled his fiscal year 2024 budget proposal, projecting to cut the deficit by $3 trillion over the next 10 years through a variety of tax increases and spending boosts.[0] The proposal seeks to raise taxes on corporations, billionaires, and other high-income earners, while also providing an array of investment priorities in federal agencies.

The budget includes an increase to the Medicare tax rate for those earning more than $400,000 per year and the elimination of a loophole that allows high earners to avoid additional taxes.[1] It boosts taxes on oil and gas companies, raises the corporate tax rate to 28%, and allows Medicare to negotiate drug prices.[2] For wealthier taxpayers, the top income tax rate would be raised from 37% to 39.6%.[3]

The budget also proposes a national paid family and medical leave program, offering up to 12 weeks of leave for eligible employees to bond with a new child, care for a seriously ill loved one, heal from their own serious illness, or address circumstances arising from a loved one’s military deployment.[4] Employees are eligible for up to three days of bereavement leave.[5]

For the military, Biden is proposing a 5.2% pay raise, the largest since 2002.[6] The $842 billion Defense Department spending plan also includes increased support for military families and continued implementation of military sexual assault prevention and response reforms.[6]

The budget seeks to shore up Social Security and Medicare with a minimum 25% wealth tax on households with a net worth of $100 million or more.[7] It also proposes to cap monthly insulin prices at $35 for people with private insurance, and provides a $27.2 billion budget for NASA, with increases for moon and Mars programs.[7]

Biden’s budget proposal has been met with criticism from congressional Republicans, who accuse the president of “doubling down on the same far left spending policies that have led to record inflation and our current debt crisis.”[8] With a Republican-controlled House, it's unlikely many of the proposals will be passed in their current form.[8] Ultimately, Congress will decide where the funds are allocated.[7]

0. “Biden's budget wants to bring back monthly checks to parents” Business Insider, 9 Mar. 2023, https://www.businessinsider.com/biden-budget-bring-back-monthly-child-tax-credit-checks-permanent-2023-3

1. “Biden's Budget Aims to Hit Republicans Where It Hurts” The New Republic, 10 Mar. 2023, https://newrepublic.com/article/171079/bidens-budget-doomed-still-matters

2. “Biden’s $5 trillion tax blowout still leaves soaring red ink” New York Post , 10 Mar. 2023, https://nypost.com/2023/03/09/bidens-5-trillion-tax-blowout-still-leaves-soaring-red-ink/

3. “Biden Calls for Doubling of Capital Gains Tax Rate” Kiplinger's Personal Finance, 9 Mar. 2023, https://www.kiplinger.com/taxes/biden-calls-for-doubling-capital-gains-tax-rate

4. “What's in Biden's budget” CNN, 9 Mar. 2023, https://www.cnn.com/2023/03/09/politics/2024-budget-joe-biden-explainer/index.html

5. “Biden wants paid parental leave, free preschool for all US workers” Business Insider, 9 Mar. 2023, https://www.businessinsider.com/paid-parental-leave-free-preschool-bidens-budget-childcare-2023-3

6. “Troops would see biggest pay raise since 2002 under Biden budget plan” Military Times, 9 Mar. 2023, https://www.militarytimes.com/pay-benefits/2023/03/09/troops-would-see-biggest-pay-raise-since-2002-under-biden-budget-plan

7. “Biden budget would cut deficit by $3 trillion over next decade with 25% minimum tax on richest Americans” CNBC, 9 Mar. 2023, https://www.cnbc.com/2023/03/09/biden-budget-would-cut-deficit-by-3-trillion-over-next-decade-with-25percent-minimum-tax-on-richest-americans.html

8. “McCarthy shreds Biden's budget proposal: ‘Completely unserious'” Fox News, 10 Mar. 2023, https://www.foxnews.com/politics/mccarthy-shreds-bidens-budget-proposal-completely-unserious

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