Biden’s $6.8 trillion budget, suggests tax increases

US President Joe Biden unveiled his proposed budget for 2024. It contains a strategy to reduce the fiscal deficit by $3 trillion over the following ten years as well as greater taxes on the rich and big businesses.

By raising taxes on oil and gas firms, increasing the corporate tax rate to 28%, and allowing Medicare to bargain for prescription pricing, more money would be raised. The 2024 budget totals $6.8 trillion in spending, slightly above the current year.

Democrats and Republicans, who control the House of Representatives, will square off over the budget. Yet, a raise in the debt ceiling must be approved by Congress. Republicans oppose tax increases, and party leaders have stated they won’t push for cuts to Medicare or Social Security.

The framework for the budget predicts a deficit of more than $1 trillion annually through 2033 (deficits ranging from 4.6% to 6.8% of GDP), with a debt-to-GDP ratio of 109% by that time. 1.5% yearly growth is assumed.