Biden unveils pre-election budget worth $7.3 trillion

(Patria) - US President Joe Biden outlined his political vision for a possible second four-year term, proposing an election-year budget of $7.3 trillion aimed at convincing skeptical Americans that he can lead the economy better than Donald Trump.

Biden wants to increase taxes on corporations and the wealthy to reduce the deficit and fund new programs that should help those earning less cope with high housing and childcare costs.

It is unlikely that Congress will adopt the proposed measures, reports Hina.

Biden's budget for fiscal year 2025, which begins in October, includes raising the corporate tax rate from 21 to 28 percent, which would force those with wealth of $100 million or more to pay at least 25 percent of their income and allow Biden to negotiate lower drug costs.

Meanwhile, the government would reinstate child tax credits for low- and middle-income individuals, fund childcare programs, direct $258 billion to housing construction, provide 12 weeks of paid family leave for workers, and spend billions on law enforcement.

House Speaker Mike Johnson, whose Republicans control the chamber, quickly dismissed the proposal, saying it reflects an "insatiable appetite for reckless spending" and "disregard for fiscal responsibility".

The budget was released days after Biden's State of the Union address in which he attacked the policies of Trump, the expected Republican opponent in the November elections.

Forty percent of Americans believe Trump would manage the economy better, compared to 31 percent who chose Biden and 28 percent of respondents who either didn't know or declined to answer, according to a Reuters and Ipsos poll from January.

Trump, whose main legislative achievement as president was a major tax cut in 2017, wants to significantly increase tariffs on imported goods and ease regulatory restrictions for energy producers.