President Joe Biden released a $6.8 trillion budget Thursday that includes large tax increases on wealthy families and businesses and lays out Biden’s spending priorities.
With Republicans in control of the U.S. House, Biden’s budget is extremely unlikely to pass in its current form. But the budget does signal what policies the president would like to pursue over the next year, including investments in “clean” energy, advancing “equity,” and combating China’s rising influence in the world.
The president also said his budget would eliminate tax subsidies for oil and gas companies and expand Medicare’s ability to negotiate drug prices. He would increase defense department spending by 3.2% from 2023 and would allocate $6 billion to Ukraine.
Biden’s proposed budget includes $3.8 trillion in tax increases, according to the Tax Foundation. The foundation said the proposed increases would “bring U.S. tax rates far out of step with international norms.”
Biden would raise the corporate income tax rate from 21% to 28%, and quadruple a stock buyback tax. He would also raise the tax rate for individuals making over $400,000 and couples earning over $450,000 to 39.6%, up from 35%.
On Thursday, Biden challenged House Speaker Kevin McCarthy to release his own budget, so they can find areas of agreement.
“I’m ready to meet with the speaker anytime,” Biden said, during a speech at a union hall in Philadelphia where he outlined his budget.
In a statement, McCarthy and other House leaders said Biden’s budget was “reckless.”
“We must cut wasteful government spending,” they said. “Our debt is one of the greatest threats to America and the time to address this crisis is now.”
President Biden just delivered his budget to Congress, and it is completely unserious.— Kevin McCarthy (@SpeakerMcCarthy) March 9, 2023
He proposes trillions in new taxes that you and your family will pay directly or through higher costs.
Mr. President: Washington has a spending problem, NOT a revenue problem.
Utah Sens. Mike Lee and Mitt Romney were also quick to criticize Biden’s plan, especially over his proposed tax and spending increases.
“President Biden’s latest budget request demonstrates how out of touch he is with Utah families. The proposal ... calls for $82 trillion of total spending over the next ten years with trillions of new and higher taxes to the American taxpayer,” said Lee. “I remain committed to resisting this administration’s reckless and inflationary spending proposals because they are unsustainable for Utah families.”
Romney said Biden was using his budget to “satisfy his base.”
“Raising corporate taxes would cause companies and good jobs to leave America, as they have in the past. Rather than aggressively beefing up the number of border agents and drug enforcement personnel to counter the fentanyl crisis, he balloons the number of IRS agents,” said Romney. “And while talking tough about China, he allows our Navy to fall even further behind. Let’s put the President’s political foray aside and work on a bipartisan plan that can become law and that will work for America.”