President Joe Biden released a budget proposal to cut the federal government’s deficit by nearly $3 trillion over ten years. The administration previously set a $2 trillion deficit reduction target.
The proposal seeks to raise taxes on high-income earners – families earning over $400,000 annually. He also proposed an increased tax on corporate profits. The proposal does not include cuts to spending for programs like Medicare, Medicaid or Social Security.
“It proposes tax reforms to ensure the wealthy and large corporations pay their fair share while cutting wasteful spending on special interest interests, like Big Oil and Big Pharma,” White House Press Secretary Karine Jean-Pierre said.
The President’s initial budget plan is considered a starting point for negotiations. The House, now led by Republicans who want to cut spending without raising taxes, is unlikely to agree to Biden’s plan.
“This week, I’ll show Americans my full budget vision to invest in America, lower costs for families, and grow the economy without raising taxes on anyone making under $400,000,” Biden tweeted. “I urge my Republican friends in Congress to do the same. Show the American people what you value.”
Biden originally stated that he wanted to cut the nation’s debt by $2 trillion over ten years in his State of the Union speech.
Republicans and Democrats have sparred about the national deficit in the past few months. The past five presidents, including Republicans and Democrats, incurred debt with mass spending and tax cuts.
House Republicans have used the issue as a wedge, hoping to cut federal spending programs. Republicans have threatened debt default if their negotiations are not met, setting up a contentious battle.
