U.S. President Biden unveils his $6 trillion budget

U.S. President Biden unveils his $6 trillion budget

U.S. President Biden unveils his $6 trillion budget

President Joe Biden is proposing a $US6 trillion budget for next year that's piled high with new safety net programmes for the poor and middle class, but his generosity depends on taxing corporations and the wealthy to keep the nation's spiking debt from spiraling totally out of control.

The budget incorporates the administration's eight-year, 2.3 trillion dollar infrastructure proposal and its 1.8 trillion dollar American Families Plan and adds details on his 1.5 trillion dollar request for annual operating expenditures for the Pentagon and domestic agencies.

Where there's practically no convergence, though, is on the key issue of how to pay for any new plan, with Mr. Biden insisting on an increase in corporate taxation and Republicans calling for reprogramming of unspent funds from the previously approved $1.9 trillion American Rescue Plan.

Veteran GOP Sen. Richard Shelby, whose help is needed to pass annual agency budget bills, blasted Biden's plan as "a blueprint for the higher taxes, excessive spending" that also "shortchanges our national security". There's $6 trillion in spending for fiscal year 2022.

This year's projected deficit would set a new record of 3.7 trillion dollars that would drop to 1.8 trillion dollars next year - still nearly double pre-pandemic levels.

Biden said in the budget message (pdf) that the budget proposal "reflects the fact that trickle-down economics has never worked, and that the best way to grow our economy is not from the top down, but from the bottom up and the middle out".

The six-term senator added, "President Biden's proposal would drown American families in debt, deficits, and inflation", McConnell added.

PAID FOR IN 15 YEARS White House officials said Biden's $4 trillion plans to address historic U.S. inequality, climate chance and provide four more years of free public education would be completely paid for in 15 years, with tax increases starting to chip away at deficits after 2030. That would raise the federal budget deficit to $1.8 trillion in 2022.

"That is a sharp departure from unpaid tax cuts under the prior administration that seriously worsened our long-term fiscal problem", she said. "That's what tells us whether debt is burdening our economy and crowding out other investments".

White House officials said tax increases would start to chip away at deficits after 2030, reported Reuters.

Biden's first full spending outline since taking office in January serves as the fiscal blueprint for his political priorities, and is likely to kick off months of hard negotiations with Congress, which needs to approve most of the spending.

Sen. John Barrasso (R-Wy0.), chairman of the Senate Republican Conference, called the Biden budget "a recipe for mounting debt".

Treasury Secretary Janet Yellen was pleased with the budget.

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