US President Joe Biden announced the budget for fiscal year 2024 on the 9th (local time).
Summarizing foreign media such as Archyde.com and APF, President Biden formalized the so-called’tax increase for the rich’ through the budget bill released on the day. This budget bill contains President Biden’s economic plans ahead of the presidential election next year and his re-election challenge.
The budget bill, which totals 6.8 trillion dollars, greatly increases defense and social welfare budgets and backs it up with tax increases on the rich and large corporations.
The budget aims to reduce the federal deficit by regarding $3 trillion over the next 10 years. The Congressional Budget Office expects an annual deficit of more than $1 trillion a year by 2033, and the intention is to drastically reduce it.
The budget also includes a plan to increase taxes on high-income earners to expand Medicare finances. Specifically, the public health insurance (Medicare) tax rate imposed on individuals with an annual income of more than 400,000 dollars (approximately 527.44 million won) will be raised from 3.8% to 5%.
In addition, it will impose a minimum tax of 25% on any increase in the wealth of billionaires and raise the top income tax rate for those making $400,000 a year from 37% to 39.6%.
$31 billion in subsidies and tax benefits for oil and gas companies will also be eliminated, and $19 billion in tax relief for real estate investors will also be abolished.
After announcing the budget for fiscal year 2024 that day, President Biden said in Philadelphia, Pennsylvania, “We must ask the wealthiest companies to pay their fair share.”
“My proposed budget won’t just save people’s lives and save money so they don’t go bankrupt,” he said. “It will save the government.”
However, it is unlikely that the government budget will be implemented as originally proposed. This is because strong opposition from the Republican Party, the majority party in the House of Representatives, which has the authority to handle the budget bill, is expected. The Congress, which is currently negotiating with the government to raise the debt ceiling ($31.4 trillion), is urging the government to cut spending, not increase taxes.
“This budget will boost American manufacturing, provide paid leave, cut taxes for working families, and drive healthcare innovation,” said White House Budget Director Shalanda Young. “It’s the right way to grow our economy. ”he said.
“Republicans keep saying they want to cut the deficit,” he said, “but they haven’t come up with a comprehensive plan showing what they’re going to cut.”
(Seoul = News 1)