Following up a well-received State of the Union address, President Joe Biden sent his 2025 budget proposal to Congress Monday with an array of his key talking points from the speech, including higher taxes for the wealthy and corporations, cuts for the middle class and paying down the deficit.
The budget also includes about $100 billion to strengthen border security and deliver aid to Ukraine and Israel.
The budget proposal is $7.3 trillion overall for 2025 and is relatively unchanged from his initial 2024 proposal, the New York Times reported, which 'went nowhere in Congress."
Biden proposes to expand the child tax credit and aid for families paying for daycare and cut taxes for Americans earning less than $400,000 a year. Biden's budget would raise the corporate tax rate from 21 to 28 percent as part of an effort to create about $5 trillion in new taxes on corporations and the wealthy over the next decade. Administration officials told the New York Times on Monday that those increases would be 'equally split between corporations and the nation’s highest earners.'
It includes a minimum 25 percent tax rate for billionaires.
Biden wrote "For too many hardworking families, it costs too much to find a good home, so we are working to lower costs and boost supply of housing nationwide."
This budget, Biden added, restores the Child Tax Credit expansion and guarantees the 'vast majority of families high-quality child care for no more than $10 a day, while boosting pay for child care workers.' It offers universal free preschool for all four million of America’s 4-year-olds.
Biden's stated goal for the deficit is to create $3 trillion in new measures to reduce it over the next decade, something the nonpartisan Committee for a Responsible Federal Budget called “a welcome start, but a too timid one.”
So, how will the overall budget plan fare in Congress?
"Most of the new spending and tax increases included in the fiscal 2025 budget again stand almost no chance of becoming law this year, given that Republicans control the House and roundly oppose Mr. Biden’s fiscal agenda," the New York Times reported.
Republican House Speaker Mike Johnson sent out a statement on X that said, among other things, that the budget is a "reminder of this Administration's insatiable appetite for reckless spending and the Democrats' disregard for fiscal responsibility."