United States – President Joe Biden is issuing a budget plan on Monday aimed at getting voters’ attention: tax breaks for families and health care costs shift to individuals or families, lower deficits, larger household budgets, and higher taxes on the rich and companies.
Blueprint for the Future
This proposal, which is leaning toward becoming law, is just a play by the Biden Administration to set a template for the future, which would be the case if the Democrats and enough of them go for the November elections. Ahead of the State of the Union speech last week, the President and his advisers apparently outlined parts of their budget proposal, with the details expected to be delivered on Monday, as reported by Associated Press.
When social expenditures declared in the “Biden budget” were accepted, the deficit could be narrowed by USD3 trillion over ten years. Better for parents as they may get higher, known as the child tax credit. Homeowners seeking the tax credit may receive it at an amount that equals 9,600. Business taxes would go up a lot, and death taxes would be applied to billionaires worth more than USD25 million.
Healthcare Reforms and Savings
Biden wants to put Medicare in a position to be able to negotiate prices on 500 drug prescriptions and this will save USD200 billion during the next ten years.
The President’s tour includes an event in Manchester, New Hampshire. Here, he will urge lawmakers to adopt his USD2,000 drug cap and USD35 insulin to everyone on both Medicare and the private market. In addition, he plans to bring about permanence by extending some of the Affordable Care Act’s provisions that are scheduled to expire in 1 year.
In all this, Biden has been pushing for a contest defined on his own terms, while Donald Trump, the all-but-certain Republican candidate, is seeking to unite his party behind his policy agenda.
“A fair tax code is how we invest in things that make this country great: health care, education, defense, and so much more,” Biden said at the State of the Union address on Thursday, indicating that Donald Trump slashed USD2 trillion in taxes in 2017 which, 99 percent of it went to the highest 1% of the catchy population.
In Trump’s opinion, there is a need to raise tariffs as well as soak the nation in oil. He referred to a “second phase” of tax cuts that would cover those of his 2017 tax reform law, which would expire after 2025. The frontrunner has also vowed to remove government regulations. Also, he has made commitments to fight the deficit, but what’s his plan without this being shown?
“We are going to do things that people thought was not even possible before I started my election campaign,” Trump said after his recent important victories in several states in the Super Tuesday contest.
Republican Response
House Republican lawmakers cast their own fiscal year budget bill to the Committee on Thursday and held that achieving the goal requires cutting the deficit by USD14 trillion over ten years. Such a policy would be based on optimistic scenarios and deep reductions, which are expected to cut USD8.7 trillion from the already allocated funds for Medicare and Medicaid. The President’s effort has been to halt any cuts to Medicare.
“The House’s budget blueprint reflects the values of hard-working Americans who know that in tough economic times, you don’t spend what you don’t have — our federal government must do the same,” House Speaker Mike Johnson, R-Louisiana, said in a statement, as reported by Associated Press.
Fiscal Year Budget in Progress
At the same time, the budget for this fiscal year is also going through Congress. On Saturday, Biden signed a spending bill into law totaling USD460 billion to keep the shutdown of several federal agencies in abeyance, but lawmakers reached just about the middle point of addressing spending for the current fiscal year.