On Friday, May 28th, Joe Biden proposed a budget that detailed spending six trillion dollars. His comprehensive speech gave a more detailed breakdown of the amount than his preview in April did, which only specified the priorities. As per the budget, there is a listing of the spending and taxes for the fiscal year, which starts in October.
In his planned layout for the upcoming decade, he presented his well-thought budget, which would involve spending on child care, education, infrastructure, and a few other domestic programs proposed under what Biden labeled the American Jobs and American Families plans.
The budget does seem promising. So, now it is all up to Congress, dominated by Democrats, to make a call on what gets implemented and how. Now, let us get started and give you the highlights of the budget.
'As per the budget, there is a good chance that we will see a surge in the federal debt. Unfortunately, this spike would be relative to the economic size, but it would be greater than what America saw during World War II.
So naturally, it implies that there is surplus fodder for the Republicans to cast their attacks on Biden's spend and tax plan,' points out Julie, an educator who offers 'pay for dissertation online'services.
During the World War II era, debt peaked at 106% of the gross domestic product in 1946. Under Biden's plan, the deficit is projected to rise to 117% of the size of the economy by 2031. Without changes, it's expected to grow to 113% of GDP.
Biden's administration believes that it is the interest payments and not the debt size, which is the most crucial standard for determining whether this debt is impacting the economy or not. Biden even added that the annual interest payments after inflation for the government would be lower than the historical average in the following ten years.
Well, we certainly will have to wait to see that.
Public insurance option
Upon more profound analysis of Biden's budget speech, we found that there sure was a mention of developing public insurance and simultaneously reducing the application and qualification age for Medicare.
However, what we found missing in the budget was how he plans to do the same. The proposal only intimates Congress to make amends this year by bettering and expanding the health coverage and reducing the costs for the prescription drug, but we do not yet know-how.
However, the plan states that the money saved via a reduction in the sum Medicare pays for prescription drugs may be utilized in coverage expansion. But it is a debated topic as the Congressional Democrats do not quite know yet how to address the drug prices and simultaneously spend such savings.
Improvement in deficits
In 2022, the White House intends to invest over 1.8 trillion dollars more than the projected amount. So, hopefully, by 2031, we will see a decline in the deficit compared to the economic size.
Biden assures that this deficit would be smaller than what it would have been if such changes had not been put into action. It is partly as Joe has proposed funding for a few of his ambitious agendas via higher taxes on the wealthiest households and corporations.
Unfortunately, there was no talk about the structural deficit in this budget address, which was in place ahead of the pandemic. However, of course, this disparity is majorly driven by rising health care costs, deficiency of adequate tax revenue, aging population, and compounding interest,' comments Steve, an associate who works with a platform where you can find 'pay someone to take my online examservices.
Over something that Biden did not address in his foremost budget request - ban on federal funding of most abortions, Biden pleased the abortion-rights groups, but at the same time, fumed the anti-abortion activists.
We are yet to see the real combat over this subject, which will be in Congress, wherein the Congressional Democrats might be unable to keep the ban or the Hyde amendment from being included in the spending bills as it used to be for many decades now.
This was a benchmark decision from the President as we knew he once was inactive in favor of the ban. However, he stepped back on his stand in the 2020 campaign. This ban will curtail the coverage of abortion under Medicaid, which is a primary healthcare program under federal programs for the underprivileged.
Trump tax cuts
According to the prevailing law, there is a presumption noted in Biden's budget. According to it, the 2017 tax reduction approved by former President Donald Trump will no longer be valid after 2025.
However, if that happens, this could be a clear violation of the campaign promise made by Biden not to surge the taxes for Americans who earn 400,000 dollars or lesser,' points out Stanley, an educator who offers online assignment help Sydney.
We agree with the point made by Stanley here, but when this question was raised to Shalanda Young, the acting budget director, his response was – there is time before 2025.
Of course, we understand and believe that Biden's association with Congress will not bring in any unfruitful results for the Americans. There was a subtle assurance that Biden would take measures to reform the tax code.
Hopefully, if that happens, even the wealthy Americans will have to bear only a fair share of taxes, which would be adequate to raise enough revenue without compromising the interests of the middle-class and lower-income families.
If we compare Biden's plan to Trump's plan, we see a shift in priorities. As per Trump's plan, there was a lesser focus on the domestic program. Congress was made to allocate a more significant sum for the military.
On the contrary, Biden plans for more lavish spending on public health, education, environment, housing, and other aspects and a slight increase for the Pentagon. Biden believes that disinvestment in these areas can go against the country's ability to fight climate change, address racial inequities, and redevelop the economy.