President Joe Biden has unveiled a budget proposal for fiscal 2025 that aims to capture voters’ attention with promises of tax breaks for families, lower health care costs, reduced deficits, and higher taxes on the wealthy and corporations.
While the proposal is unlikely to pass the Republican-controlled House and Senate to become law, it serves as an election year blueprint for what could be achieved if Biden and enough Democrats win in November.
The budget proposal includes measures to reduce deficits by $3 trillion over a decade and raise tax revenues by $4.9 trillion over the same period, with roughly $1.9 trillion allocated to fund various programs and the rest going to deficit reduction.
Joe Biden (Credits: NBC Chicago)
Biden’s budget contrasts with what he and his aides describe as less financially viable rival measures from Republicans, which they argue lack transparency and detail.
The proposal would increase taxes on the wealthy and corporations while offering tax breaks for families. It includes provisions such as an increased child tax credit, a tax credit for homebuyers worth up to $10,000, and $10 billion in down payment aid for first-generation buyers.
It also calls for a minimum tax of 25% on billionaires and proposes allowing Medicare to negotiate prices on 500 prescription drugs, potentially saving $200 billion over 10 years.
Additionally, the budget would provide funding to help address housing shortages, with $258 billion allocated to build or preserve 2 million homes. It also includes provisions to make child care more affordable for families and eliminate origination fees on government student loans.
Joe Biden (Credits: ABC13)
The budget proposal seeks to define the race on Biden’s preferred terms, contrasting his approach with that of the likely Republican nominee, Donald Trump.
While Biden emphasizes a fair tax code and investments in health care, education, and defense, Trump has called for increased tariffs, oil production, and a “second phase” of tax cuts.
House Republicans have also put forward their own budget resolution, which they say would trim deficits by $14 trillion over 10 years but would depend on economic forecasts and significant spending cuts, including reductions in Medicare and Medicaid expenditures.
Congress is still working on a budget for the current fiscal year, with Biden recently signing a $460 billion package to avoid a shutdown of several federal agencies. However, lawmakers are only about halfway through addressing spending for this fiscal year.
