President of the U.S.A Joe Biden today presented his government’s budget proposal for fiscal year 2024.a wish listthe White House, and even more so today, given that Congress is divided. However, the Democratic president’s spending and revenue priorities will be key factors in upcoming talks with Republicans to raise the national debt ceiling.

Biden promises welfare and taxation of the rich, essentially announcing his election program ahead of his presidential race 2024. But analysts note that many of these measures have no chance of being approved by Congress.

The 2024 budget includes reducing debt by about $3 trillion. within 10 years, as announced by the White House. To do this, the US president wants to introduce a minimum tax of 25% for billionaires, i.e. for the richest 0.01% of Americans. He also recommends her Increasing the corporate tax rate to 28% from 21% today. However, this percentage remains lower than the 35% that was the tax rate before the tax reform. Donald Trumpin 2017.

At the same time, Biden wants to drastically cut some “wasteful” spending, especially in “big pharma,” the pharmaceutical sector, and “big oil,” the oil industry.

“My budget will require the rich to pay their fair share so that the millions of workers who helped create that wealth can retire with the health insurance they paid for,” Biden himself said in a Twitter post.

The 80-year-old president, who has yet to formally announce his candidacy for the 2024 election but appears to be on the campaign trail, will later present his proposal in Philadelphia, Pennsylvania, the election-critical state.

OUR budget provides for the cost of $6.883 trillion and revenues of $5.036 trillion. for fiscal year 2024 starting October 1. This means that the deficit will grow to 1.846 trillion. It is also predicted that the annual deficit will exceed 1 trillion. dollars annually until 2033.

The White House is also asking for $842 billion in the defense budget, up from $816 billion this year. Border security requires an almost $800 million increase in the Immigration and Customs Enforcement budget, bringing total funding to $25 billion.

As part of efforts to cut costs, the government says it will promote initiatives to combat spending fraud on programs implemented during the pandemic and others. Biden also wants to increase penalties for companies that violate labor laws.

The American president believes he can fund the health insurance system that benefits Americans over 65, Medicare, for another 25 years. He also plans to raise the wages of federal employees by 5 percent.

However, Biden should have no illusions about his ability to implement his proposals: Since the beginning of the year, he no longer controls the House of Representatives, and the Republicans declare their determination not to approve any tax increases.

Another confrontation between Democrats and Republicans is more relevant and concerns raising the national debt limit. The United States is the only industrial superpower in the world that is forced to seek its approval. Congress to allow the government to increase its debt. This vote was something of a formality for a long time, but in recent years it has become highly politicized. The head of the House, Republican Kevin McCarthy, says his party will not approve an increase in the national debt limit until Biden restrains public spending.

The Democratic president is currently refusing to negotiate, believing that the debt accumulated over the years is the responsibility of both parties.

The stakes are high: if the bra delay is extended, the US will face a default threat from July, something that has never happened before.

The debt of the largest economy in the world as of January 19 reached 31.4 trillion. dollars, and Treasury Secretary Janet Yellen then announced that she would activate emergency temporary measures to keep public services running until July.

Source: APE-MPE-Reuters-AFP.