Biden wants higher taxes on the rich and corporations

Philadelphia Current tax rules allow for large loopholes — many of the wealthiest Americans pay lower tax rates than middle-class families, it said. Further tax hikes are planned for corporations. It is considered impossible for the draft to pass Congress in this form.

The budget includes a nominal increase in defense spending to a record $842 billion. That’s a nominal increase of 3.2 percent over the 2022 budget, according to the White House on Monday. This means high inflation is not yet taken into account. In addition, more than 6 billion dollars have been allocated to support Ukraine, the NATO defense alliance and European partner countries.

Debt ceiling reached

The total cost of the draft is about $6.9 trillion. So the budget deficit will be about $1.8 trillion — higher than expected. Drafting is the first step in difficult budget negotiations that usually drag on for months. Congress has the power to pass the budget. However, the Democrats lost their majority in the House of Representatives in the midterm elections last November. This means that the draft in this form is unlikely to be executed.

However, this will further fuel the debate over raising the debt ceiling. In the United States, Congress sets the debt ceiling at irregular intervals to determine how much the state can borrow. The current debt ceiling has now been reached and the finance ministry has to tap reserves. Among Republicans in the House of Representatives, some hardliners are blocking the issue. Without escalation, there is a risk of early non-payment.