Biden calls for higher tax on wealthiest Americans

WASHINGTON (AP) —

US President Joe Biden released a budget blueprint today that calls for higher taxes on the wealthy; lower federal deficits; more money for police; and greater funding for education, public health and housing.

In essence, it tries to tell voters what a diverse and at times fractured Democratic Party stands for ahead of the midterm elections that could decide whether Congress remains under the party's control.

The bottom line: Biden is proposing a total of $5.8 trillion in federal spending in fiscal 2023, which begins in October, slightly less than what was projected to be spent this year before the supplemental spending bill was signed into law this month. The deficit would be $1.15 trillion.

There would be $795 billion for defense, $915 billion for domestic programs, and the remaining balance would go to mandatory spending such as Social Security, Medicare, Medicaid and net interest on the national debt.

The higher taxes outlined on today would raise $361 billion in revenue over 10 years and apply to the top 0.01 per cent of households. The proposal lists another $1.4 trillion in revenue raised over the next decade through other tax increases that are meant to preserve Biden's pledge to not hike taxes on people earning less than $400,000.

The 156-page plan also shows the splinters that persist in Biden's coalition and the possible gaps between the promises of what is being offered and the realities of what ultimately emerges. Biden has backed many of these ideas previously without necessarily getting a full buy-in from Congress.

The proposal includes a minimum 20 per cent tax on the incomes of households worth $100 million or more, similar to a proposal Democrats in Congress began debating late last year that failed to clear the Senate.

More money would go to support law enforcement, yet bipartisan efforts at police reform have failed. The budget assumes — with a high degree of uncertainty based on forecasts made last November — that inflation at a 40-year peak gets back to normal next year.

"Budgets are statements of values," Biden said in a statement, "and the budget I am releasing today sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America."

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