Biden Budget: President Proposes a 6 Trillion Dollar Budget

However, Joe Biden would need the congress approval to pass the budget before it can be implemented.

The US president,  Joe Biden, has revealed his first budget, which totaled $6tn that includes higher taxes for wealthier citizens.

The Budget has large new social programs to combat climate change. However, as usual, it needs to be passed by Congress and has already been described by Republican senator Lindsey Graham as “Insanely expensive.”

With the proposed budget, the total amount of national debt would reach 117% of GDP by 2031, making it higher than World war 2. Even with estimated $3tn tax increases on corporations, top income tax bracket, and capital earnings.

The previous Republican President  Donald Trump, also ran on deficit every year in power with his final budget plan amounting to $4.8tn

The current spending plan has a $1.5tn for operating costs for the Pentagon and other government organizations. With two other plans, which include a $2.3tn job plan and a family $ 1.8tn plan.

Joe Biden, the democrat, says this annual budget “invests directly in the American people and will strengthen our nation’s economy and improve our long-run fiscal health.”

The white house stated that the bill would help improve the economy from the ground up and middle out.

The budgets offer:

Over $800 billion to check climate change and investments for clean energy.

Preschool for three and 4-year-olds for no cost, which would cost $200 billion.

Two years of community college for all citizens requiring $109 billion

$225bn for a paid medical and family leave which would put the US in league with similarly wealthy nations

Roads and bridges at $155bn

$160bn for railways and public stations.

$100bn to aid access to broadband internet for every American home.

There is also a main exemption in the budget: The Hyde amendment, a federal policy that states Taxpayer money cannot be used to find abortions in the US States unless in a rape or incest case.

Joe Biden would be the first president to remove the policy in decades, and action lauded by progressives. However, he had supported the directive for quite a while before condemning it during his campaign.

However, not surprisingly, the president’s budget faces opposition in the Senate, where even several members of his party can join republicans in pushing the Hyde amendment.

How about inflation and deficit?

The top economic consultant in the White House, Cecelia mouse, admitted the economy is facing inflation surges but estimated it would come down to an annual rate of 2%.

Top economic experts such as Larry Summers,  who advised Barack Obama and Bill Clinton, have stated that massive government spending could spike inflation, making federal reserves increase interest rates, creating a risk of recession.

The Biden budget projects an additional $14.5tn would be added to US debt over the next decade.