Biden Unveils Budget Plan: Tax Increases on Wealthy and Corporations, Military Pay Raise, and Record Levels of Debt

President Joe Biden unveiled his budget on Thursday, a sweeping blueprint that includes proposals to increase taxes on corporations and wealthy Americans to revive many of the tax policy ideas of the Build Back Better Act.[0] The budget has no chance of getting passed by Congress, but it signals Biden’s commitment to creating a fairer economy and providing a “blue-collar blueprint” for his expected 2024 re-election bid.[1]

The Biden budget proposes higher taxes on the wealthy, including a top tax rate of 39.6% for single filers making more than $400,000 a year and married couples making more than $450,000 per year as well as a 25 percent tax on the nation’s wealthiest 0.01 percent of families.[1] It would also raise the corporate tax rate from 21 percent to 28 percent and quadruple the 1 percent tax on stock buybacks.[2] To help shore up Medicare, the budget proposes a tax increase for people making more than $400,000 a year.[3]

The budget also includes an increase to defense spending, an 8 percent rise in nondefense discretionary spending, and a 5.2% raise for military pay, the largest boost since a 6.9% average military pay increase in 2002.[4] In addition, Biden has proposed a 4 percent tax on stock buybacks and a new Medicare tax on business income to pay for social security and Medicare.[5]

Biden is also calling for a higher tax on stock sales than at any time since the 1970s, a move that would discourage Americans of all income groups from saving and investing.[6] Furthermore, the budget proposes a minimum tax on billionaires and restoring the enhanced child tax credit, which would make the credit fully refundable so more low-income families would qualify.[7]

The White House claims that the budget plan would reduce the federal budget deficit by $3 trillion and extend the solvency of the Medicare Trust Fund by at least 25 years.[8] However, the nonpartisan Committee for a Responsible Federal Budget (CRFB) has concluded that the budget would take the U.S. to record levels of debt, with total federal debt increasing by an astounding $19 trillion over the next decade.[8] The national debt would reach 110 percent of GDP by 2033, and interest payments would total over $1 trillion per year by the time Biden leaves office in 2029.[9] Moreover, the budget does not address Social Security, which is also facing insolvency.[0]

0. “Biden's Budget Aims to Hit Republicans Where It Hurts” The New Republic, 10 Mar. 2023,

1. “Biden Calls for Doubling of Capital Gains Tax Rate” Kiplinger's Personal Finance, 10 Mar. 2023,

2. “Biden’s $5 trillion tax gambit catches Congress by surprise” The Hill, 12 Mar. 2023,

3. “Biden sets up for an election fight with his budget proposal” Al Jazeera English, 9 Mar. 2023,

4. “Troops would see biggest pay raise since 2002 under Biden budget plan” Military Times, 9 Mar. 2023,

5. “Biden's budget is a declaration of war on American businesses that will hit you hard” Fox News, 11 Mar. 2023,

6. “Biden’s billionaire tax proposal, explained”, 10 Mar. 2023,

7. “What's in Biden's budget” CNN, 9 Mar. 2023,

8. “Biden’s Budget Is Economically Reckless and Socially Clueless” Yahoo News, 12 Mar. 2023,

9. “Biden's Budget Binge Overtaxes, Overspends, And Overborrows” The Federalist, 10 Mar. 2023,

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