Biden unveils $7.3 trillion budget plan for 2025, focuses on tax increases for corporations and wealthy

US President Joe Biden on Monday (Mar 11) outlined his policy vision for a potential second term, unveiling a $7.3 trillion election-year budget which as per reports is aimed at convincing Americans that he can manage the economy better than rival former president Donald Trump.

Biden's budget proposal for the 2025 fiscal year includes tax increases on corporations and high earners by trillions. This is aimed at reducing the deficit and funding new programmes to assist lower-income individuals cope with housing and childcare costs.

Biden's budget

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As per Reuters, he plans to raise the corporate income tax rate from 21 per cent to 28 per cent and ensure that those with wealth over $100 million pay at least 25 per cent of their income in taxes. Furthermore, he wants to allow the government to negotiate lower drug costs.

For low and middle-income earners, it also includes provisions for a child tax credit, funding for childcare programmes, investment worth $258 billion in home construction, 12 weeks of paid family leave, and increased spending on law enforcement.

At an event in New Hampshire, Biden asked his audience: "Do you really think the wealthy and big corporations need another $2 trillion tax breaks, because that's what he (Trump) wants to do."

"I'm going to keep fighting like hell to make it fair," he added.

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Will Biden's budget get approval

As per reports, Biden's budget is likely to face opposition in Congress. It has already been rejected by Republican House Speaker Mike Johnson, who slammed it for its "insatiable appetite for reckless spending" and "disregard for fiscal responsibility".

The release of Biden's budget comes after his recent State of the Union address, where he criticised Trump's policies.

Biden's approval ratings

Despite Biden's efforts, he has struggled to shake voterconcerns about high prices and the direction of the US economy.

A January Reuters/Ipsos poll showed that 40 per cent of Americans believe that compared to Biden, Trump would handle the economy better. Only about 31 per cent were in Biden's favour, while another 28 per cent said they didn't know or just refused to answer.

Donald Trump's stand on taxes

In contrast to Biden, Trump advocates for increasing tariffs on imported goods and reducing regulations on energy producers. In fact, one of his signature legislative accomplishments from his time as the US President was a major tax cut in 2017.

Democrats have criticised Trump's tax cuts for benefiting the wealthy and increasing the deficit. However, when they controlled Congress 2021-2023, they did not repeal the tax cuts, reports Reuters.

Biden's proposed budget aims to raise tax receipts by $4.951 trillion over 10 years, primarily through tax hikes on businesses and wealthy individuals. The plan also includes measures to reduce deficit spending by $3 trillion over a decade.

(With inputs from agencies)