President Joe Biden has put forth a budget proposal for fiscal 2025 that aims to capture voters' attention with promises of tax breaks for families, reduced health care costs, smaller deficits, and increased taxes on the wealthy and corporations. While unlikely to pass through Congress, the proposal serves as a blueprint for what could be if Democrats secure victories in the upcoming elections.
If implemented, the Biden budget could trim deficits by $3 trillion over a decade, raising tax revenues by $4.9 trillion and allocating $1.9 trillion to fund various programs while the remainder would go towards deficit reduction.
The budget includes provisions such as capping drug costs and insulin prices, making certain Affordable Care Act protections permanent, and enhancing the child tax credit. It also proposes tax credits for homebuyers and down payment assistance, along with increased corporate taxes and a minimum tax for billionaires.
Biden's plan also addresses Medicare negotiation of drug prices, aiming to save $200 billion over a decade. While it ensures Medicare's solvency, concerns remain about the future of Social Security.
The proposal allocates funds for defense, aid to Ukraine and Israel, and border security enhancements. It emphasizes support for families by investing in housing, child care, student loans, and reducing university costs.
As Biden seeks to shape the election narrative, his Republican counterpart, Donald Trump, advocates for tariff increases, oil production, tax cuts, and regulatory reductions. Trump's plans include potential cuts to entitlement programs, a move Biden vehemently opposes.
Congress is currently working on the budget for the current fiscal year, with ongoing debates over spending priorities and deficit reduction strategies.
