Andrea Shalal, Trevor Hunnicutt

WASHINGTON (Reuters] – U.S. Vice President Joe Biden presented Monday a $5.79 Trillion budget plan to Congress. The plan calls for record military spending, increased taxes for billionaires and businesses, and lowered government deficits.

Biden’s 2023 budget proposal, which will be effective Oct. 1, sets out the priorities of his administration. It includes campaign promises such as making the rich and corporations pay more taxes. It is not a budget proposal, as the legislative decisions regarding budget issues are made on Capitol Hill.

This plan was based upon economic assumptions that were in place on Nov. 10, long before Russia invaded Ukraine. It has also exacerbated inflationary pressures previously experienced with food and energy prices.

Cecilia Rouse, Biden’s chief economic advisor, stated that the administration sees an increase in inflation over the next year.

Biden released a statement saying that the budget he is releasing today sent a clear message about how much he values fiscal responsibility, safety, security, at home, around the globe, and the investment needed to maintain our equity growth and create a better America.

The Democratic president said he was calling for higher defense spending to strengthen the U.S. military and “forcefully respond to (Russian President Vladimir) Putin’s aggression against Ukraine with $1 billion in additional U.S. support for Ukraine’s economic, humanitarian, and security needs.”

This document provides fresh insights into Biden’s thoughts as he tries to stop the biggest war in Europe after World War Two, and prepares for Nov. 8 Midterm Elections that could lead to his Democratic Party losing control of Congress.

Biden stated that his administration is on track to cut the federal deficit by $1.3 trillion in the current year. This would halve the deficit from last year’s Trump administration and expand the economy.

He said, “My budget would continue that progress. Further reducing deficit by continuing support for economic growth that has raised revenues, and ensuring that billionaires pay their fair portion.”

Biden’s proposal also includes increased funding for community policing.

BILLIONAIRES TX

Biden, who was forced to push the brakes by his party’s disagreements, instead continued negotiating vast areas of his domestic agenda “Build Back Better”. His budget does not contain line items that he plans to use to boost the country’s economy, environment, healthcare and housing infrastructure, as well as his manufacturing and competitiveness goals.

However, it calls for a minimum tax that requires billionaires pay at most 20% in taxes on their income. This includes any gains made on investment assets not sold.

The tax will apply to 0.1% of American households, those with a value over $100million. More than half the revenue would come from households that have a total of $1 billion or more. The tax would result in a reduction of $360 billion in the government’s deficit over 10 years, the White House stated.

Biden long believed that America’s tax system favors the wealthy and that rich people should be paying more for social services.

Budget also proposes to raise corporate tax rates to 28% and to make other modifications to corporate tax codes that encourage investment and job creation.

It includes $773 billion to the Department of Defense. When combined with other spending, this would bring together a total national security budget of over $800 billion.

Russia’s invasion of Ukraine on February 24, 2017 has raised fears about European security. Meanwhile, the Biden administration invests in research and development for hypersonic weapons and other advanced capabilities.

Although the United States has not been directly involved in Russia’s war on Ukraine, they are providing extensive support and weapons to Kyiv. Along with European allies it has also placed severe economic sanctions against Russia.

On the hook for increasing healthcare spending and social spending, particularly for seniors, the U.S. Federal Government has expended more than it took in over the past 20 years.