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A2 UP FRONT
Friday 10 March 2023
Biden lay out his budget plan, challenges GOP to follow suit

From Front cap of $31.4 trillion by this
summer, the government
By JOSH BOAK could default on payments
Associated Press and perhaps shove the
PHILADELPHIA (AP) — As country into a recession.
political gridlock puts the The budget also shows the
government at risk of de- shadow of Trump’s legacy,
faulting, President Joe as provisions in his 2017 tax
Biden on Thursday made cuts will expire after 2025.
an opening bid with a bud- Biden wants to eliminate
get plan that would cut elements of that over-
deficits by $2.9 trillion over haul, arguing that lower
the next decade — a pro- taxes failed to produce
posal that Republicans al- the growth that Trump
ready intend to reject. promised. But Biden’s bud-
It’s part of a broader at- get does not address tax
tempt by the president to cuts that benefited house-
call out House Republi- holds making less than
cans who are demanding $400,000: Their expiration
severe cuts to spending in could amount to a tax in-
return for lifting the gov- crease that would violate
ernment’s legal borrowing a pledge by Biden to only
limit. But the GOP has no raise taxes on the wealthy.
counteroffer so far, other Based off the data, the cost
than a flat “no” to a Biden of extending the tax breaks
blueprint with tax increases for people making less than
on the wealthy that could $400,000 would be $1.5 tril-
form the policy backbone President Joe Biden speaks about his 2024 budget proposal at the Finishing Trades Institute, lion, according to Kyle Po-
of Biden’s yet-to-be-de- Thursday, March 9, 2023, in Philadelphia. merleau, a senior fellow at
clared campaign for re- Associated Press the center-right American
election in 2024. Striding Enterprise Institute. That
around a stage at a union need at this time,” he said. compared with the current for cryptocurrency transac- would halve the deficit sav-
training center in Philadel- In addition to deficit reduc- level of $2,000. That credit tions. McCarthy has called ings being promoted by
phia, Biden seemed to be tion, Biden’s 10-year bud- would be “fully refund- for putting the U.S. govern- Biden, but Pomerleau cau-
in full campaign mode as get largely revolves around able,” which means house- ment on a path toward a tioned that his estimates
he spoke about his plan for the idea of taxing the holds could receive all of balanced budget. But by might be high because the
the government’s finances wealthy to help fund pro- that sum even if they don’t refusing to raise taxes or cut president’s plan includes
and how his values con- grams for the middle class, owe any taxes. The budget Social Security and Medi- the cost of the expanded
trasted with Republican older adults and families. It proposal would impose a care spending, GOP law- child tax credit.
priorities. “I just laid out would raise $4.7 trillion from $35-a-month cap on insulin makers face some harsh Biden’s proposal would in-
the bulk of my budget,” higher taxes, with an addi- prices, matching a change math that makes it hard to crease the top marginal
Biden said. “Republicans tional $800 billion in savings that Biden already put in reduce deficits without risk- tax rate to 39.6% on income
in Congress should do the from changes to programs. place for Medicare recipi- ing a voter backlash before above $400,000. For house-
same thing. Then we can The tax increases include a ents. a presidential election. He holds with $1 million in in-
sit down and see where we reversal of the 2017 tax cuts At a time of increased ten- has said his plan’s release come, earnings from capi-
disagree.” made by President Donald sions with Russia and China, was pushed back because tal gains, such as stocks or
Yet the president doubted Trump on people earning the budget shows a de- Biden’s proposal was only property sales, would no
that GOP lawmakers could more than $400,000 a year. cline in military spending as now coming out. longer enjoy a discount-
make their numbers match Biden has floated a new a share of the U.S. econo- Senate Majority Leader ed tax rate compared
their calls for a balanced 25% minimum tax on house- my over the next decade. Chuck Schumer, D-N.Y., with wages. The president
budget and he suggested holds worth $100 million or But federal spending would expressed skepticism that would increase the corpo-
that any efforts to do so more. Also, the tax that be equal to roughly one- McCarthy has any coher- rate tax rate to 28% and
could come at the expense companies pay on stock quarter of economic out- ent plan that House Re- increase the tax rate on
of middle-class families. buybacks would rise four- put as the spending on So- publicans can coalesce U.S. multinationals’ foreign
“How are they going to fold and those earning cial Security and Medicare around. “Enough with the earnings from 10.5% to 21%.
make the math work?” more than $400,000 would climbs, essentially keeping dodging, enough with the In February, the nonparti-
Biden said. “What are they pay an additional Medi- the government the same excuses,” Schumer said. san Congressional Budget
going to cut?” care tax that would help size as it is currently. “Show us your plan. And Office estimated that the
Biden’s package of tax and to keep the program sol- The budget would seek then show us how it’s go- national debt held by the
spending priorities is unlikely vent beyond the year 2050. to close the “carried in- ing to get 218 votes on your public will grow by more
to pass the GOP-run House Medicare could negotiate terest” loophole that al- side of the aisle.” than $20 trillion over the
or the Senate, where Dem- on the prices of more pre- lows wealthy hedge fund Biden’s deficit reduction next decade. The publicly
ocrats hold a slim edge, as scription drugs, helping to managers and others to goal is significantly higher held debt, which reflects
proposed. save the government mon- pay their taxes at a lower than the $2 trillion that he the cumulative impact of
House Speaker Kevin Mc- ey. rate, and prevent billion- had promised in his State yearly deficits, would be
Carthy, R-Calif., said the Accompanying that would aires from being able to of the Union address last equal to 118% of U.S. gross
president’s proposed defi- be $2.6 trillion worth of set aside large amounts month. domestic product, com-
cit reduction was inad- new spending, including of their holdings in tax-fa- With the economy already pared with 98% this year.
equate. “It just seems like the restoration of the ex- vored retirement accounts. in a fragile state because of Biden’s budget would re-
it’s going to create the big- panded child tax credit The plan also projects sav- high inflation, if Biden and duce the debt, though it
gest government in history. that would give families as ing $24 billion over 10 years Congress cannot agree would still be high relative
I don’t think that’s what we much as $3,600 per child, by removing a tax subsidy to raise the statutory debt to historical levels.q