The $5.8 trillion budget offer released by President Joe Biden on Monday stated that the plan will reduce the U.S. deficit and “build a better America.”
“Budgets are statements of principles, and the budget I’m releasing today sends a loud statement about our commitment to economic responsibility, safety and security at home and across the world, as well as the investments required to continue our success in an equitable America.” Biden said Monday, announcing the initiative.
Biden has said that his administration is “on track to lower the federal deficit by over $1.3 trillion this year, which will cut in half the Federal deficit from the prior year of the last Administration and producing the largest ever one-year decrease in the deficit in the history of the U.S.” Biden went on to say that his budget plan would continue this success by lowering taxes and promoting growth while also ensuring that billionaires and large businesses pay their fair share.
“We will secure our communities by increasing the number of police on the street to help engage in accountable policing of communities, while hiring the agents that are needed to assist in fighting gun crime, and investing in preventing crime and community violence,” Biden concluded. Biden added that the plan “provides the resources needed to lower costs for families, which include investments to reduce child care and healthcare costs; assist households in paying for other necessities; end cancer as we know it; aid our veterans; and provide mental health services to all Americans.”
The budget plan, according to The Hill, contains $813 billion in military and national spending on security, including $773 for the Dept. of Defense. It also includes an additional $1 billion in assistance to Ukraine and $6.9 billion going to NATO and the European Defense Initiative to assist them in countering Russian aggression. On the domestic side, the bill provides $30 billion in federal funding to state and local police. Another $1.7 billion is dedicated to a “firearm trafficking strike force” within the Department of Justice, bringing the total to $61.7 billion. The plan also earmarks money for other Biden goals, including preparations for future pandemics, as well as clean energy initiatives ($3.3 billion) and “climate resilience” ($18 billion). The “Billionaire Min Income Tax” is a proposed 20% minimum tax on households worth more than $100 million, including their wages and other income such as unrealized gains. It also increases the corporate tax rate from 21 percent to 28%.
Biden has long cultivated a reputation as a fiscal conservative, touting his administration’s track record of decreasing the federal deficit. “We lowered the deficit by about 360 billion dollars last year,” Biden said. “We’re on track to be the first president in history to reduce the deficit by over a trillion dollars in one year,” Biden boasted. The deficit, however, is not declining because of anything Joe Biden did; it’s due to the $5 trillion in COVID-19 relief money that was dispensed from 2020 through 2021. The CRFB also points out that deficits will rise over the next decade as a result of this downward trend staying in place for just one year.