Biden pitches US$5.8 trillion plan with record tax hike

[superadmin]

(March 28): President Joe Biden unveiled a US$5.8 trillion budget request designed to appease moderate Democrats on Monday, with a proposal that emphasized deficit reduction, additional funding for police and veterans, and flexibility to negotiate new social spending programmes.

Congress historically sets presidential budgets aside but they do form a key messaging device. The White House included measures that would add up to the biggest tax increase in history in dollar terms, helping stabilize deficits relative to the size of the economy.

The 2023 budget calls for US$1.598 trillion in so-called discretionary spending — areas that aren’t linked with mandatory programs like Social Security — with US$813 billion for defense-related programmes and US$769 billion for domestic spending.

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