Biden budget reveals president's top priorities to voters ahead of 2024

Cami Mondeaux

March 09, 08:10 AM March 09, 08:10 AM

President Joe Biden is set to release his budget proposal for the next fiscal year on Thursday, targeting four key areas as he courts voters ahead of his expected reelection campaign.

Biden is expected to release the long-awaited budget around noon during a visit to Pennsylvania as he unveils some of his top campaign priorities to the critical swing state. The budget release is largely symbolic, as it’s unlikely that Congress will approve the proposal in its current form, but it serves as campaign fodder as Biden teases a reelection bid.

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Here are the four key areas Biden will target in his budget proposal:

Higher taxes for the wealthy to reduce deficit over next decade

One of Biden’s key proposals is to implement higher taxes for the wealthiest taxpayers as a way to reduce the federal deficit by nearly $3 trillion over the next decade.

Biden will announce a 25% tax increase on households that are worth more than $100 million as a way to tax unrealized capital gains that often go overlooked, according to the New York Times. By doing that, the White House hopes to raise about $360 billion in revenue over the next 10 years.

He’ll also call for higher taxes for oil and gas companies, eliminating subsidies that have allowed the industry to benefit from so-called “special tax treatment.” Biden will also propose to reverse Trump-era tax cuts for high earners and corporations, raising the corporate tax rate from 21% to 28%.

Biden’s not expected to request much funding to go toward COVID-19, signaling the president is ready to phase out its emergency response over the coming months.

Decrease costs for families

Biden is especially expected to target families in his budget proposal, seeking to reduce costs in a number of areas. His budget proposal is expected to pour funds into child care and education, seeking to allocate $22.1 billion into early care and education programs.

Biden will also increase pressure to reduce the cost of insulin, seeking a maximum cap of $35 a month — reviving past debates and backing Republicans into a corner over the matter. That proposal builds on previous efforts by Biden to cap insulin prices for Medicare beneficiaries in his Inflation Reduction Act, seeking to extend that to all Americans.

Extend Medicare and Social Security benefits

Biden’s budget will seek to extend Medicare and Social Security protections for 25 years without cutting any of the program’s benefits or increasing costs. The president hopes to achieve those goals by “modestly” increasing tax rates for taxpayers earning an annual income of more than $400,000 from 3.8% to 5%, according to a memo sent by the White House earlier this week.

His proposal would also seek to close loopholes that allow some high-income earners to avoid paying the 3.8% Medicare tax. In doing so, Biden’s plan would extend Medicare’s benefits until 2050 without cutting benefits.

The budget proposal comes as lawmakers are considering ways to salvage Medicare and Social Security benefits amid concerns the programs will go insolvent in the next few years. Biden has repeatedly accused Republicans of seeking to cut Medicare and Social Security benefits, hoping to use the attack as fodder in the 2024 election cycle.

“The Unity Agenda”

Biden is expected to request a defense budget of more than $835 billion in Thursday’s proposal, marking one of the largest peacetime defense budgets in U.S. history.

He’ll also press lawmakers to invest in what he considers a “unity agenda,” proposing to pour money into cancer research, mental health services, and combating the opioid epidemic. Biden may also revive efforts to increase funding for community college, following through with previous proposals that have failed to make their way through Congress.