The budget plan of the Biden administration includes a request for $2 billion to strengthen the economies of the Indo-Pacific region and support partners in the confrontation with China, said John Bass, acting deputy secretary of state for management and resources, according to Reuters.

“Our competition with China is extremely broad and complex, requiring a different approach than a traditional budget,” Bass told reporters, adding that the budget includes mandatory spending in addition to discretionary resources to help address the “generational challenge” that he represents: China.

US President Joe Biden’s budget for the 2024 fiscal year will be released on Thursday. Although the document is always more of a wish list, and with a divided Congress, the Democratic president’s spending and revenue priorities will be key factors in future negotiations with Republicans on raising the debt ceiling, Reuters writes.

Here’s what to expect from Biden’s budget:

Biden wants to cut the deficit by “nearly $3 trillion” over ten years

The budget proposal that Joe Biden will present on Thursday “will reduce the deficit by almost $3,000 billion over the next ten years,” his press secretary Karin Jean-Pierre said on Wednesday, according to AFP.

She said the US president intends to achieve this goal without touching social benefits and by raising taxes “on the rich and big corporations, while eliminating unnecessary spending for special interests like pharmaceutical and oil giants.”

Tax incentives for Medicare

The White House said this week that Biden hopes to raise the Medicare tax on income over $400,000 from 3.8 percent to 5 percent and expand the federal government’s ability to negotiate drug prices to keep the health care program afloat.

Redemption of shares

Biden plans to propose quadrupling the 1 percent tax on stock buybacks that took effect in January to encourage companies to invest in their growth instead of incentivizing shareholders. The White House said that the taxation of buyouts eliminates distortions in the tax system.

Dividends, they say, are taxed by many shareholders, but share buybacks were not taxed until this year. A plan to increase the buyback tax could have trouble passing the U.S. Congress, where Republicans control the House of Representatives.

Child care, tax benefits

Biden will restore provisions in his 2021 COVID-19 plan that expanded the child tax credit for low-income families and restore plans for federal funding for preschools.

Railway safety

The budget is expected to include hundreds of millions of euros in new funding for rail safety measures following a series of accidents and derailments.

Minimum income tax for billionaires

Biden is expected to repeat his call for a 20 percent marginal tax on households worth more than $100 million. The White House calls it the “minimum income tax on billionaires.”

The tax would ensure that the wealthiest Americans don’t pay a lower tax rate than firefighters and teachers, Biden said in his budget proposal last year. Several previous attempts by Democrats to introduce such a proposal have failed in Congress.