Joe Biden, the US President, has announced a $6 trillion budget for the next year on Friday that is crammed with new welfare programs for the middle class and poor, but his compassion is contingent on taxing companies and the affluent to bring the nation’s growing debt under control.
Biden inherited unprecedented pandemic-related expenditures and achieved a key success earlier this year on COVID-19 relief. Friday’s announcement expands on his previously disclosed infrastructural expenditure projects and fleshes out his prior pledges to significantly raise yearly Cabinet budget expenditure.
This year’s estimated deficit would establish a new high of $3.7 trillion, before falling to $1.8 trillion the following year — still over twice pre-pandemic levels. After more than $5 trillion in already-approved COVID-19 relief, the national debt will shortly exceed $30 trillion. As a consequence, the government will need to borrow around half of every dollar spent this year and next.
With the debt largely unaddressed, Biden would utilize suggested tax increases on corporations and the wealthy to fund massive new social programs such as universal prekindergarten, substantial child care subsidies, and guaranteed paid leave.
According to Biden in his $6 trillion budget statement, the most effective approach to develop our economy is not top-down, but bottom-up and middle-out. Our wealth is derived from those who work hard each day, work diligently, raise their families, pay their taxes, serve their country, and volunteer in their communities.
The budget combines the administration’s eight-year, $2.3 trillion infrastructure plan and $1.8 trillion American Families Plan, as well as specifics on the president’s $1.5 trillion annual operational spending request for the Pentagon and domestic departments.
Shalanda Young, acting White House budget head, said the Biden proposal accomplishes precisely what the President promised the people he would accomplish. Increase economic growth and job creation while being fiscally responsible by asking the richest Americans and large companies to pay their fair share.
Biden’s $6 trillion budget is certain to provide Republicans with more ammo to criticize the upcoming Democratic government for pursuing a “tax and spend” plan that will harm the economy and burden younger Americans with heavy debt. Republicans allege that he is also underfunding the military.