President Biden’s Budget Proposal: Prioritizing Families and Taxing the Wealthy

President Joe Biden is set to unveil his fiscal year 2025 budget, highlighting initiatives to bolster support for families while increasing taxes on the affluent segment of society.

The Focus on Families

One of the key features of Biden’s budget is the reinstatement of the expanded child tax credit, which was initially introduced under the American Rescue Plan. This provision, aimed at reducing child poverty, provided parents with an enhanced, refundable credit, including monthly payments. Additionally, the budget aims to alleviate childcare expenses, proposing that families earning under $200,000 pay no more than $10 per day for childcare. Moreover, it advocates for a national program for paid family and medical leave.

Strengthening Social Security and Medicare

The budget underscores Biden’s commitment to safeguarding Social Security and Medicare benefits, with a proposed $1.3 billion increase in funding for the Social Security Administration. This augmentation aims to enhance customer service for beneficiaries and ensure that there are no cuts to these vital programs.

Tax Policy Reforms

In terms of tax policy, Biden’s budget targets the wealthy and corporations. It includes provisions for a minimum income tax on billionaires, raising the corporate tax rate to 28%, and elevating the corporate minimum tax rate from 15% to 21%. Additionally, the budget seeks to bolster IRS funding to combat tax evasion among high-income earners and proposes penalties for corporations with executives earning over $1 million.

Other Budget Priorities

Apart from these key initiatives, Biden’s budget requests increased funding for Federal Student Aid to facilitate student loan repayment transitions, emphasizes investments in climate programs, and advocates for more affordable housing initiatives.

Congressional Hurdles and Opposition

Despite these proposals, the budget faces significant challenges in Congress, particularly with Republicans controlling the House. Republican lawmakers have historically opposed Democratic-led programs and proposed cuts to various initiatives. Moreover, any attempts to raise taxes on the wealthy are likely to encounter resistance, even from within the Democratic Party, given the slim majority in the Senate.

In conclusion, while President Biden’s budget outlines ambitious plans to support families and reform tax policies, its prospects for approval in its current form remain uncertain amidst partisan divisions and opposition to tax hikes on high earners and corporations.