Biden challenges Republicans with budget that raises taxes, sets up 2024
run
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[March 09, 2023]
By Andrea Shalal
WASHINGTON (Reuters) - U.S. President Joe Biden will travel to the
swing-state of Pennsylvania on Thursday to unveil a federal budget plan
laden with spending proposals and higher taxes on the wealthy that will
form a blueprint for his expected 2024 re-election bid.
Biden's proposal, which resurrects many items stripped from last year's
budget plan, faces even stiffer opposition in Congress this year, after
Republicans won control of the House of Representatives in November's
midterm elections.
It comes in direct defiance of Republican House Speaker Kevin McCarthy's
threat to block an increase in the $31.4 trillion limit on federal
borrowing unless Biden agrees to rein in federal spending.
Speaking at a Philadelphia union hall, the Democratic president will
highlight plans to cut the nation's deficit by nearly $3 trillion over
10 years by raising taxes on those earning more than $400,000 a year and
ending corporate tax breaks enacted in 2017 under then President Donald
Trump.
A White House official, who was not authorized to speak publicly,
contrasted Biden's vision with that of Republicans, saying the budget
would reduce the U.S. deficit while lowering costs for families.
It also proposes raising taxes on the wealthy and large corporations,
the official said, and "tackles wasteful special interest giveaways."
Biden's budget plan proposes funding higher outlays and closing the
deficit by imposing a 25% minimum tax on billionaires and doubling the
capital gains tax from 20%, the White House official said. Biden has
also said the budget will propose quadrupling a 1% stock buyback tax,
while going after corporations and rich individuals who skip paying
taxes.
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U.S. President Joe Biden delivers
remarks as he attends a Democratic National Committee rally at
Richard Montgomery High School in Rockville, Maryland, U.S., August
25, 2022. REUTERS/Jonathan Ernst
Biden, will promise to protect those earning less than $400,000 a
year from tax increases and safeguard Social Security, Medicare and
Medicaid. At the same time, he will offer relief to working families
by investing billions to ease the cost of childcare and ensure free
preschool for all of the country's 4 million 4-year-olds, and
promises to increase rail safety.
White House officials say that lowering the cost of childcare will
boost the economy and allow more women to return to work. Such
proposals also enjoy strong support and could help boost Biden's low
approval ratings as he gears up announce his reelection bid this
spring.
Republicans say Biden's spending during his first two years in
office drove inflation to nearly 40-year highs last summer and are
already readying $150 billion in cuts to non-defense discretionary
programs - including about $25 billion from the Department Education
and cuts in foreign aid and programs aimed at preventing sexually
transmitted diseases - that they say would save $1.5 trillion over a
decade.
Is there common ground? “Very little, very little,” Republican
Representative Ben Cline told Reuters. “He doesn't want to cut any
spending, he just wants to raise taxes."
(Reporting by Andrea Shalal and Trevor Hunnicutt, additional
reporting by David Morgan, editing by Robert Birsel)
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