March 8, 2023

Tomorrow, Joe Biden will propose policies aimed at trimming federal budget deficits by at least $2 trillion over the next 10 years as he wades into the politics of debt reduction while fighting with Republicans over the debt ceiling. Via The New York Times:

Mr. Biden’s plans, which will be detailed as part of his budget blueprint, are expected to rely heavily on a familiar batch of tax increases on corporations and high earners along with savings from some spending reductions, including efforts to save money on federal health care programs by expanding legislation he signed last year that allows Medicare to negotiate the price of certain prescription drugs.

The moves come as Mr. Biden faces pressure from Republicans, who won control of the House last fall, to alter the nation’s fiscal path. House Republicans have refused to raise the nation’s debt limit, which caps how much money the federal government can borrow, unless Mr. Biden agrees to steep cuts in federal spending.

To help increase federal revenues and reduce the nation’s reliance on borrowed money, Mr. Biden is expected to announce a new tax on American households worth more than $100 million that would apply to both their earned income and the unrealized gains in the value of their liquid assets, like stocks. Mr. Biden will also call for the quadrupling of a tax on stock buybacks that was approved as part of a sweeping tax, health care and climate bill he signed last year.

He will also continue pushing for tax increases to offset his proposed plans that have not yet passed Congress. Those include expanded access to child care and lowered cost, provide federally guaranteed paid leave for workers, establish universal pre-K, and enable students to attend community college for free.

Republicans are unlikely to support any of it.

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