Biden’s Budget Proposal: A Preview of 2024 Platform and Extension of Medicare’s Life
On Thursday, President Joe Biden unveiled his budget proposal for the upcoming year, a sprawling plan that reflects his commitment to creating a fairer economy while challenging Republicans who are demanding steep cuts to federal spending programs.[0]
The budget seeks to reduce the deficit by $3 trillion over 10 years, in part by increasing taxes on wealthy Americans and large corporations, quadrupling taxes on stock buybacks, raising the corporate income tax rate to 28%, and capping out-of-pocket costs for certain generic drugs at $2. It also includes a provision that allows the federal government to negotiate prices for some Medicare drugs.[1]
Biden is proposing a 5.2% raise for federal employees and military service members, the largest increase in more than 40 years.[2] The defense department will receive $886.4 billion, a 3.3% or $77.2 billion increase over 2023 enacted, while non-defense agencies would receive $688.1 billion, a 7.3% or $46.9 billion increase over this year’s budget.[3]
The budget also includes a proposal to cap monthly insulin prices at $35 for people with private insurance, something that the Inflation Reduction Act has already done for Medicare beneficiaries.[4]
The White House says the plan would extend the solvency of the Medicare Trust Fund by at least 25 years without removing benefits or raising costs. It would do so by raising the Medicare tax rate to 5.0% from 3.8% on earned and unearned income above $400,000 and by closing a loophole that has shielded some wealthy business owners and high earners from paying that tax.[0]
“This year's budget cuts the deficit by nearly $3 trillion over the next decade by asking the wealthy and big corporations to begin to pay their fair share and by cutting wasteful spending on Big Pharma, Big Oil and other special interests,” said Shalanda Young, Biden’s budget chief.
While the proposal has little chance of passing through the Republican-controlled House, it will frame upcoming political battles on Capitol Hill and act as a preview into Biden’s platform as a potential 2024 presidential candidate.[5] As Republicans wrestle over how to approach entitlements, Biden’s proposed budget aims to extend Medicare’s life by at least 25 years.
0. “Biden unveils ‘blue-collar’ budget plan with tax hikes for America’s wealthiest” The Guardian US, 9 Mar. 2023, https://www.theguardian.com/us-news/2023/mar/09/joe-biden-federal-budget-cutting-deficit
1. “Biden's One-Sided Attack on Republican Budgeting” FactCheck.org, 8 Mar. 2023, https://www.factcheck.org/2023/03/bidens-one-sided-attack-on-republican-budgeting
2. “Biden Reportedly Will Propose a 5.2% Pay Raise for Feds in 2024” GovExec.com, 8 Mar. 2023, https://www.govexec.com/pay-benefits/2023/03/biden-reportedly-will-propose-52-pay-raise-feds-2024/383762/
3. “5.2% pay raise, blocking future Schedule F and more from the 2024 budget request” Federal News Network, 9 Mar. 2023, https://federalnewsnetwork.com/budget/2023/03/5-2-pay-raise-blocking-future-schedule-f-and-more-from-the-2024-budget-request/
4. “Biden budget would cut deficit by $3 trillion over next decade with 25% minimum tax on richest Americans” CNBC, 9 Mar. 2023, https://www.cnbc.com/2023/03/09/biden-budget-would-cut-deficit-by-3-trillion-over-next-decade-with-25percent-minimum-tax-on-richest-americans.html
5. “What's in Biden's budget” CNN, 9 Mar. 2023, https://www.cnn.com/2023/03/09/politics/2024-budget-joe-biden-explainer/index.html
