Biden unveils $7.3 trillion budget for fiscal year 2025
President Biden has unveiled his comprehensive $7.3 trillion budget proposal for 2025, featuring a series of ambitious partisan measures aimed at increasing taxes on wealthy individuals and corporations.
The president's plan aims to reduce the nation's deficits by $3 trillion over the next decade. It includes proposals to raise the corporate tax rate, implement a minimum tax on billionaires, quadruple the tax on stock buybacks, and more.
While the proposal is unlikely to become law in the divided Congress, it serves as a strategic tool for the president as he embarks on the campaign trail. It also provides a blueprint for Democrats as Congress begins to consider funding for fiscal year 2025, starting in the fall.
The budget focuses on measures to crack down on "wealthy tax cheats," targeting aspects of former President Trump's 2017 tax plan that Democrats criticize as favoring the wealthy. It also supports extending tax cuts for Americans earning less than $400,000, along with additional reforms.
Biden's proposal comes amid challenges, including lackluster polling numbers and ongoing concerns about his economic policies. Despite signs of economic improvement, with reduced inflation, a strong stock market, and lower unemployment, Biden has faced criticism for his handling of the economy.
His economic agenda, branded as "Bidenomics," has struggled to gain traction, particularly during last year's recession fears. Polling suggests that he still faces challenges in receiving credit for the country's economic recovery.
The president's latest budget proposal mirrors last year's plan, which also aimed to reduce the deficit by $3 trillion and raise taxes on the wealthy. The White House remains committed to protecting Social Security and Medicare, with Biden pushing back against Trump's recent comments about entitlement programs.
During a recent State of the Union address that had a campaign-like tone, Biden highlighted his administration's economic achievements and criticized his predecessor's policies. Trump, who is likely to secure the Republican presidential nomination, could face Biden in a rematch in November's general election.
Biden emphasized his administration's economic progress, stating that the economy is now the envy of the world. However, a recent poll indicates that a majority of voters perceive the economy under Biden negatively, compared to less than a third who felt the same under Trump.
Looking ahead to his 2025 budget, Biden outlined plans to lower costs for Americans and create a fairer tax code. As the 2024 election season heats up, Biden pledges to continue his work in the Oval Office if re-elected.
While lawmakers are finalizing funding for fiscal year 2024, Biden's budget proposal offers insight into potential areas of focus for Democrats in fiscal year 2025, including significant increases in funding for the EPA, Social Security Administration, Department of Energy, Small Business Administration, and Transportation Department compared to previous years.
White House officials have contrasted Biden's proposal with Republican efforts, criticizing the GOP-led House Budget Committee's budget proposal for relying on overly optimistic economic projections that do not align with reality.