President Joe Biden plans to unveil his budget plan for 2023 on Monday. But, in a radical move, he aims to trim $1 trillion from the national deficit over the next decade. Here’s how.
At a Glance:
- Joe Biden is set to reveal federal budget plan on Monday.
- The 2023 plan aims to cut $1 trillion in deficits within the next ten years.
- Biden to account for budget deficits from radical tax on wealthy Americans.
Explore Biden’s 2023 Budget Proposal:
Two dynamic factors contribute to Joe Biden’s radical, and highly controversial, budget plan for 2023. And, essentially, those two parts go hand in hand.
Following Democrats’ rejected tax on the wealthy last year, Joe Biden plans to level a 20% tax rate on the wealthiest Americans. If approved, Biden’s plan would see increased revenue received from American households worth more than $100 million. The AP reports the introduction of the billionaire minimum income tax would represent a significant reorienting of the tax code.
Altogether, the new plan affects just 0.01% of American households. Half of the expected revenue will likely come from households worth $1 billion or more.
With significant tax rates imposed on the wealthiest Americans, the outlet reports that revenue gained will cut projected budget deficits by more than $1 trillion over the next decade. Statistics come from a facts sheet released over the weekend by the White House budget office.
Other Intents for Billionaire Tax Minimum
While the 20% tax for wealthy Americans would contribute to a decrease in national deficits, the plan serves other specified purposes.
As per the outlet, the billionaire tax minimum intends to ensure that those Americans considered middle class will pay lower tax rates than the top 0.01% of society. Additionally, revenue resulting from the proposal, if approved, would ensure the foundation of the president’s domestic ambitions, keeping the deficit relatively in check compared to the nation’s economy.
Meanwhile, the national deficit has fallen since the start of the COVID-19 pandemic. For the fiscal year 2021, the national deficit sat at $2.8 trillion, which previously achieved $3.2 trillion in 2020. This year, the deficit is expected to reach $1.4 trillion.
In order for the deficit to continue falling, however, the Biden administration must see the billionaire tax minimum pass. And with many Republicans believing such a tax on the wealthy to be detrimental to job generation and abroad funding, it’ll be interesting to see how the proposal is received.
Nevertheless, the AP reports that already, the U.S. economy remains on a more sustainable path. As per the outlet, the deficit at the conclusion of the Trump administration was comparable to 14.9% of the U.S. economy. Now, though, ahead of Biden’s budget plan on Monday, the deficit for the upcoming budget year will be below 5%.
The above statistics come from individuals familiar with the veiled budget proposal.