Biden’s $5.8 trillion budget leans towards economic and security concerns

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Ben Ritz, director of the Center for Funding America’s Future at the Progressive Policy Institute, said the White House’s choice not to explain the fiscal effect of some of its domestic policy proposals would leave “Democrats in Congress to fill in the blanks.” . It is “unlikely that most of these policies can be sufficiently vetted and refined” before the midterm elections, he said, when the party could lose control of Congress.

“Democrats can’t afford to let the perfect be the enemy of the good,” Ritz said. “It’s high time lawmakers figured out which sustainable, disinflationary fiscal policies can win majority support in both houses.”

Budget watchdogs, who have spent years warning that the nation is on an unsustainable fiscal trajectory, said they were happy to see Mr Biden offer to cut the deficit, but found the proposal insufficient.

“The aim is good, but the path is suspect,” Robert L. Bixby, executive director of the Concord Coalition, said in a statement. “The budget assumes, for example, that GDP growth will remain high, inflation will subside quickly and interest rates will remain low. It’s an unlikely combination of factors.

Much of the projected deficit reduction would come from $2.5 trillion in higher taxes on corporations and the wealthy, including a new minimum tax on billionaires. The proposal, which must be approved by Congress, would require U.S. households worth more than $100 million to pay a rate of at least 20% on their income as well as unrealized gains on the value of their assets liquids, such as stocks and bonds, which can accumulate in value for years but are not taxed until they are sold.

The White House also proposed raising the top marginal tax rate to 39.6% from 37% and raising the corporate tax rate to 28% from 21%. Both proposals seek to undo some of the tax cuts Republicans approved in 2017.

Republicans, who have targeted Mr Biden’s economic prowess ahead of the midterm elections, called the budget reckless, saying it would exacerbate inflation and discourage investment.

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