Joe Biden on Monday presented a nearly $5.8 trillion 2023 budget proposal that prioritizes taxing the wealthiest Americans, tackling crime and defending to support Ukraine in the face of the Russian invasion.
The president said the plan reflected his administration’s values of “budget responsibility,” security at home and abroad, and the need to invest more to stay competitive.
This draft budget, which covers the period from 1er October to September 30, is addressed to Congress, which controls the government’s purse strings. It will therefore be subject to amendments to be approved by both chambers where Democratic lawmakers have narrow majorities.
A sharp increase in defense spending (+4%) is thus likely to come up against the left wing of the party.
The proposal for a minimum tax on the rich has long been called for by the left wing of the Democratic Party to fight against inequality. “The rich will finally pay their fair share,” Joe Biden said at a press conference on Monday. He took the example of firefighters and teachers who suffer higher tax rates than billionaires taking advantage of tax loopholes. ” It is not fair “.
If retained in the final budget, the proposal will apply to the wealthiest 0.01% of households, “those with more than $100 million,” the White House said earlier. “And more than half of the revenue would come from billionaires alone.”
20% or more
The goal is for the wealthiest to pay at least 20% of their total income in income tax.
A similar proposal had already been considered last year as part of the negotiations for the “Build Back Better” social spending plan. But the Biden government had given up on it in October to try to save its plan that had finally stalled due to divisions between Democrats.
The 2023 budget also plans to raise the corporate tax rate to 28%, canceling the reform adopted under Donald Trump in 2017, which had lowered it to 21%, underlined Joe Biden.
Crime and firearms
In addition to a rebalancing in terms of taxation, Joe Biden underlined his desire to allocate more resources for security inside and outside the United States.
Nationally, the plan includes $3.2 billion to put more police officers in the field and $30 billion for fighting crime.
The Biden government also wants to provide more resources to fight gun violence with an allocation of $1.7 billion.
China
Meanwhile, the U.S. budget proposal includes a $6.9 billion allocation for the European Deterrence Initiative, the North Atlantic Treaty Organization (NATO), and “the fight against Russian aggression “, as well as an additional billion in favor of Ukraine.
If the budget is adopted by Congress, these funds would be added to other aid already released to kyiv.
The objective of this new aid is to “improve the capabilities and readiness of American forces, NATO allies and regional partners in the face of Russian aggression”, explained the White House.
Defense Department officials stressed that Russia, through its invasion of Ukraine, poses “an acute threat” to the world order but, for them, China remains the main strategic risk for the United States.
The White House has also budgeted $1.4 billion for the World Bank’s International Development Association (IDA). “This investment restores the historic role of the United States as the World Bank’s largest donor to support the development of low- and middle-income countries,” said the White House.
She notes that contributing to global stability, mitigating climate and health risks is beneficial for the United States and Americans.