President Biden is set to propose a bold budget plan on Monday, packed with tax increases on corporations and high earners, new spending on social programs, and a wide range of efforts to combat high consumer costs like housing and college tuition.
The fiscal 2025 budget, while facing opposition from Republicans who control the House, will serve as a draft of Mr. Biden’s policy platform as he seeks re-election in November. The budget aims to portray him as a champion of increased government aid for workers, parents, manufacturers, retirees, and students, as well as the fight against climate change.
With polls showing dissatisfaction with Mr. Biden’s handling of the economy, the budget is a strategic move to reclaim strength on economic issues with voters. The proposed tax increases on large companies and the wealthy are intended to offset the cost of new spending measures.
Key highlights of the budget include raising the corporate tax rate to 28 percent from 21 percent, increasing a new minimum tax on large corporations, and quadrupling a tax on stock buybacks. The budget also includes measures to reduce the budget deficit by about $3 trillion over the next decade.
Despite criticism from Republicans and some experts, Mr. Biden and his aides are confident that the projected deficits in the budget will not harm the economy. The budget proposal also includes new programs such as paid leave for workers, reinstating an expanded child tax credit, and efforts to help Americans struggling with high costs.
Overall, President Biden’s budget plan is a bold and ambitious proposal that sets the stage for a heated debate on economic policies and government spending in the upcoming election year.
