An early look at Biden's proposed budget plan

An early look at Biden's proposed budget plan

Sen. John Barrasso (R-Wy0.), chairman of the Senate Republican Conference, called the Biden budget "a recipe for mounting debt".

The blueprint maps out some $4.17 trillion in revenues, thereby projecting a $1.84 trillion deficit-a sharp decrease from the past two years because of the COVID-19 pandemic-but up from 2019's $984 billion.

The administration has shown a willingness to compromise with Congress, notably when it sharply reduced a budget for infrastructure building.

Senate Republicans' potential embrace of a $1 trillion infrastructure package is an encouraging sign a deal could be reached, Transportation Secretary Pete Buttigieg said Sunday on ABC's "This Week".

The national debt will soon breach $US30 trillion after more than $US5 trillion in already approved Covid-19 relief. As a result, the government must borrow roughly 50 cents of every dollar it spends this year and next.

With the deficit largely unchecked, Mr Biden would use proposed tax hikes on businesses and high-earning people to power huge new social programs like universal pre-school, large subsidies for child care and guaranteed paid leave.

"The budget that President Biden has submitted to Congress constitutes the most significant agenda for working families in the modern history of our country", he said in a statement.

PAID FOR IN 15 YEARS White House officials said Biden's $4 trillion plans to address historic USA inequality, climate chance and provide four more years of free public education would be completely paid for in 15 years, with tax increases starting to chip away at deficits after 2030. "Grow the economy, create jobs and do so responsibly by requiring the wealthiest Americans and big corporations to pay their fair share".

The spending would lead to high levels of debt, which the administration plans to cover by increasing taxes on corporations and the wealthy.

"It is insanely expensive".

The Democratic president proposed to increase taxes on high-income households to pay for the spending. "It dramatically increases non-defence spending and taxes" and would weaken the Pentagon, said South Carolina Senator Lindsey Graham, top Republican on the Budget Committee and a generally pragmatic GOP voice on spending bills. "There will be serious discussions about government funding".

And in a move that drew further Republican outrage, the proposal increased non-defense spending while holding defense spending essentially flat.

The six-term senator added, "President Biden's proposal would drown American families in debt, deficits, and inflation", McConnell added. In a statement, she called Biden's budget "an unequivocal declaration of the value that Democrats place on America's workers and middle-class families, who are the foundation of our nation's strength and the key to Build Back Better".

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