Joe Biden Proposes Budget for Second Term Restoring Tax Breaks for Families, Cuts Taxes for Millions
President Joe Biden revealed a comprehensive budget proposal on Monday, targeting voters with promises of tax breaks for families, reduced healthcare costs, and a commitment to addressing fiscal deficits.
While the likelihood of passing through the House and Senate remains slim, the fiscal 2025 proposal serves as an election-year blueprint, offering insights into potential future policies if Democrats secure victory in November, according to AP News.
If enacted, the Biden budget aims to trim deficiency by $3 trillion over a decade, with $4.9 trillion in increased tax revenues.
Approximately $1.9 trillion would fund various programs, while the remainder contributes to deficit reduction.
The president, emphasizing these points in last week's State of the Union address, provided detailed specifics on Monday.
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Reviving the Child Tax Credit (CTC) and Expanding the Earned Income Tax Credit (EITC)
Joe Biden budget seeks to revive the expanded Child Tax Credit (CTC), initially overhauled during the COVID-19 outbreak, CBS reports.
The CTC, existing since the 1990s, witnessed a temporary expansion in 2021, providing up to $3,600 per child.
Under the Biden plan, the expanded CTC would be restored, offering $3,000 per child for kids six years and older and $3,600 for those under six.
Notably, parents qualifying for the CTC would again receive monthly checks, providing practical relief throughout the year, unlike the current annual distribution.
The Treasury Department stated that monthly checks are a "more practical solution to ensure that families can receive relief when they need it most."
In addition to the CTC, Joe Biden aims to lengthen the Earned Income Tax Credit (EITC), making it more accessible to people without children and senior citizens with incomes below $64,000 annually.
The proposal broadens EITC eligibility for low-wage workers without kids and older Americans, with an average tax break of $800 for 19 million individuals and couples.
Political Implications and Republican Response
As the president gears up for a likely general election rematch against Donald Trump, the budget serves as a statement of the Biden campaign's economic platform, per the CNBC.
Trump's suggestion to cut entitlement programs such as Social Security, Medicare, and Medicaid sparked immediate backlash from Biden, who pledged to protect these programs.
House Republicans attempted to preempt Biden budget proposal by passing their own 2025 budget resolution, aiming to reduce the federal deficit by $14 trillion over the next decade.
This proposal includes dismantling Joe Biden's Inflation Reduction Act, which has invested significantly in clean energy and the green economy.
Critics, including House Republican leaders, including Speaker Mike Johnson, criticized Biden's budget as a "roadmap to accelerate America's decline."
The competing budget proposals highlight the deeply divided nature of Washington, where compromise remains elusive.
Despite fierce battles in Congress over the past six months and several near-government shutdowns, lawmakers have yet to settle on a permanent budget.
The Joe Biden budget, primarily aspirational, serves to highlight legislative and policy priorities, facing challenges in Congress with Republicans controlling the House and Democrats holding a narrow Senate majority.
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Written by: Bert Hoover
WATCH: Biden's proposed budget would increase federal spending to $7.3T in FY2025 - From CNBC News