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Biden’s 2023 budget would hike taxes on the ultra-rich and corporations, boost defense spending


During a meeting at the White House with his cabinet, Joe Biden (R) speaks with Janet Yellen, Treasury Secretary (L), and Lloyd Austin, Defense Secretary (R). This was on March 3, 2022.

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WASHINGTON — Monday’s release by President Joe Biden of his 2023 federal budget proposes tax increases on corporations and ultra-wealthy people, while approving billions in spending for the Defense Department (and the Justice Department) and adding billions more.

According to the congressional proposal, the deficit in federal finances would be reduced by over $1 trillion within the next 10 year. Partly, this is done by increasing the corporate rate from 21% to 28%. This rate was supported by progressive Democrats, but opposed by key moderates. Biden proposes an additional 20% tax for households with more than 100 million dollars and those earning the highest income of 0.01%.

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White House officials spoke Monday with reporters and credited Biden’s economic policies for creating strong economic growth enough to support cutting down on pandemic aid programs.

The White House estimates that 2022’s budget deficit will be $1.3 trillion lower than 2021 due to lower pandemic safety net cost and increased tax revenue. This is a direct result of the White House projecting that 2022’s deficit will be $1.3 trillion smaller than 2021, which was hailed Monday by the Biden Administration as the “largest ever single-year decrease in the history of our country.”

In general, the budget for 2023 is shifting away from the Omicron waves of last year’s pandemic. Notably, no emergency pandemic funds or supplemental funding are being requested.

Instead of Covid, this budget emphasizes the need to address crime and public safety and the dangers posed by Russia’s invasion in Ukraine.

These are the key spending items

  • New defense spending of approximately $31 billion, which brings the national defense budget to $813 billion.
  • The White House reports that $6.9Billion of this defense budget is earmarked for NATO, European defense and Ukraine as well to countering Russian aggression.
  • Over $32 billion has been spent to combat crime in the home. This includes more than $20.6 million at the Justice Department, and $3.2 billion each for grants for law enforcement and hiring officers.
  • Global health security: $10.6 billion, including Covid and future pandemics.

Key revenue raisers:

  • Increase the corporate tax rate, from 21% to 28% at present
  • Raising the maximum individual tax bracket to 39%
  • A 20% minimum tax be imposed on households with more than $100million and the highest earners of 0.01%, known as the “Billionaire Minimal Tax”.
  • Several tax incentives for oil and natural gas processors and producers should be repealed.
  • Regular income can be taxed as interest, thus closing the “carriedinterest loophole”.
  • Gains from similar-kind trades qualify for end tax deferrals

This budget serves also as a guideline for Democrats in Congress. They currently have a slim majority in the Senate and House, but are facing strong headwinds heading into November’s midterm election.

The budget is a mix of all three. Progresives in deep-blue districts will be focusing on Biden’s proposal for tax hikes as well as the budget’s climate change funding.

The additional funding Biden requested for the Pentagon’s police and military budgets will probably be well-received by moderate Democrats.

The release of the budget proposal came amid new polls showing that Biden was facing one of his lowest approval ratings.

New NBC News pollA Sunday poll found only 40% approve of Biden’s job as President, while 55% are disapproving.

Ask them who their favorite celebrity is. hold responsible for the high inflation rateA higher proportion of Americans blame Biden’s policies (38%), than those who blamed the pandemic (28%), or the corporate price rise (23%).

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— CNBC’s Ylan Mui contributed this article.