President Joe Biden released his federal budget proposal 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. During a speech in Philadelphia, Biden said the budget "reflects what we can do to lift the burden on hardworking 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. In addition, he called on Congress to support his plan to extend Medicare and Social Security and reduce the deficit by raising taxes on wealthy Americans.
The president’s spending priorities include increasing funding for early childhood education and child care, expanding the $35 cap on insulin prices to all Americans and expanding free community college. The budget also boosts military spending to more than $835 billion, among the largest in U.S. history.
Biden still faces the unresolved standoff with Republicans over whether to lift the debt ceiling.
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