Biden budget would cut deficit by $3 trillion over next decade with 25% minimum tax on richest

[BumRushDaShow]

Source: CNBC

President Joe Biden released his budget on Thursday, vowing to cut $3 trillion from the federal deficit over the next decade, in part, by levying a 25% minimum tax on the wealthiest Americans.

Biden also raises more revenue by increasing taxes on oil and gas companies, hiking the corporate tax rate to 28%, up from 21% imposed under former President Donald Trump but below the 35% tax pre-2017, and allowing Medicare to negotiate drug prices.

With Biden likely to run for re-election in 2024, his budget is also a preview into his platform as a candidate and campaign pitch in the year ahead. Facing a Republican-controlled House, it’s unlikely many of the proposals will be passed in their current form. The president submits his budget to Congress outlining the administration’s priorities for the upcoming year, but ultimately Congress decides where the funds are allocated.

White House Office of Management and Budget Director Shalanda Young told reporters the administration is able to cut deficit spending “by asking the wealthy and big corporations to begin to pay their fair share and by cutting wasteful spending on big pharma, big oil and other special interests.”

Read more: 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

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Full headline: Biden budget would cut deficit by $3 trillion over next decade with 25% minimum tax on richest Americans

FACT SHEET - https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/09/fact-sheet-president-bidens-budget-lowers-costs-for-families-and-gives-the-american-people-more-breathing-room/

[Yo_Mama_Been_Loggin]

1. Good

[oldsoftie]

2. I absolutely HATE this "over the next decade" crap. And they all do it with EVERYTHING

Just to make the numbers sound better. HATE it. And also backloading "savings'.
When you backload savings, you assume everything will remain the same over the next decade. There's no telling WHAT a new administration will do. Give us the yearly numbers.
If something new is going to start in '24, tell us how much we save or spend THAT year.

[BumRushDaShow]

5. It's actually a "feature" of federal budgeting

not a bug.

When they do budgets in general, it's done over 10 years, with the in years and out years often having different figures due to how the changes in appropriations/taxes/spending are phased in (which, for example, impacts interest payments owned on debt being reduced as debt is paid, etc).

[oldsoftie]

10. Well, if thats the way it must be done then thats how it is

But couldn't they still give projections for each year?

[BumRushDaShow]

11. What I posted in the OP comments was a link to the "Fact Sheet"

The budget outline itself (from OMB) is here (182 pages, PDF).

In reality, what happens whether the President or Congress are Democrats or Republicans (majority or mixed), the President's submission is always "DOA".

And then Congress "starts over", takes what they had the previous year, compares with the new requests, and starts their markups.

THAT is the reality.

So then the process goes from the "This is what I really want" to "This is what I'm going to have to work with", where there will be tweaks to current funding and updates to get rid of (instruct to return to the Treasury) unused portions of previous appropriations to realize savings and/or to shift those funds to new initiatives.

[calimary]

15. It all comes down to the horse-trading.

[BumRushDaShow]

16. Yup.

I have watched a many a hearing for markups and funding the agency I worked for before retiring.

[republianmushroom]

3. like it

[Meadowoak]

4. Still not enough, IMO.

[RussBLib]

7. It's steps in the right direction

...and the GOP will vote no, no doubt.

[Silent Type]

8. Definitely. That's roughly $300 B a year, less than 22% of current Deficit. But it's a start.

[peppertree]

6. He'll have to wait until 2025 though

Kevin and his Klowns would rather shoot their mothers than raise taxes on their rich sugar-daddies even a penny - especially on Big Awl.

(some, in fact, probably already have)

[Chainfire]

9. Biden may be in grave danger for even broaching such a subject.

[airplaneman]

12. And how is this going to pass the house ? n/t.

[BumRushDaShow]

13. No President's budget ever does

See this above - https://www.democraticunderground.com/?com=view_post&forum=1014&pid=3043862

Submission is a requirement from the Constitution and it gives Congress an idea of what the "needs" and "wants" are from the Executive Branch. Then what CONGRESS does with it, is to use it as a scratch sheet to develop their own budget for the Executive.

Based on all the appropriations hearings that have or will occur this year, the members of both chambers will get a better idea on what the appropriate funding will be for the fiscal year.

Right now, our President is putting his budget "pitch" out there -

[airplaneman]

17. Got it - thanks for the clarification n/t.

[BumRushDaShow]

19. The annual budget from the President

is basically a "dog and pony show".

[calimary]

14. If they have a lot more, why shouldn't they contribute a little more?

[cstanleytech]

18. There needs to be a progressive corporate tax as well on companies that employee +100 people.

By that I mean one that's linked to the amount of profit the companies take in vs the % of people in the company that earn below 300% of what the federal poverty level is as not by the GAO.
The higher the % of people that earn that amount or lower the higher the corporate taxes and that should all be set by the GAO.
The House and Senate together can override the GAO temporarily for a 6 to 12 month period but only if they both get more than 60% of their members to agree but the President should have zero say in it.

[sakabatou]

20. And as soon as a Repuke comes in power, they'll torpedo the budget

Increasing the deficit by a huge amount.