UNITED STATES NEWS

Biden’s budget proposal offers tax breaks for families, plus lower health care costs

Mar 11, 2024, 5:00 PM | Updated: 5:08 pm

Biden's budget proposal offers tax breaks for families...

President Joe Biden delivers remarks on lowering prices for American families during an event at the YMCA Allard Center, Monday, March 11, 2024, in Goffstown, N.H. (AP Photo/Josh Reynolds)

(AP Photo/Josh Reynolds)

 

MANCHESTER, N.H. (AP) — President Joe Biden on Monday released a budget proposal aimed at getting voters’ attention: It would offer tax breaks for families, lower health care costs, smaller deficits and higher taxes on the wealthy and corporations.

Unlikely to pass the House and Senate to become law, the proposal for fiscal 2025 is an election year blueprint about what the future could hold if Biden and enough of his fellow Democrats win in November. The president and his aides previewed parts of his budget going into last week’s State of the Union address, and they provided the fine print on Monday.

If the Biden budget became law, deficits could be pruned $3 trillion over a decade. It would raise tax revenues by a total of $4.9 trillion over that period and use roughly $1.9 trillion to fund various programs, with the rest going to deficit reduction.

The president traveled Monday to Manchester, New Hampshire, where he called on Congress to apply his $2,000 cap on drug costs and $35 insulin to everyone, not just people who have Medicare. He also advocated for making permanent some protections in the Affordable Care Act that are set to expire next year.

“I’m here in New Hampshire to talk about the budget I released today that would, I think, help in a big way,” Biden said.

How will Biden’s budget proposal help families in Arizona and across the U.S.?

Biden aides said their budget was realistic and detailed while rival measures from Republicans were not financially viable.

“Congressional Republicans don’t tell you what they cut, who they harm,” White House budget director Shalanda Young said. “The president is transparent, details every way he shows he values the America people.”

House Speaker Mike Johnson, R-Louisiana, issued a joint statement with other GOP leaders calling the Biden proposal a “glaring reminder of this Administration’s insatiable appetite for reckless spending.”

“Biden’s budget doesn’t just miss the mark — it is a roadmap to accelerate America’s decline,” the House Republican leaders said.

Under the proposal, the government would spend $7.3 trillion next fiscal year and borrow $1.8 trillion to cover the shortfall from tax receipts. Biden’s 188-page plan covers a decade’s worth of spending, taxes and debt.

How parents can benefit from the tax breaks and health care assistance

Parents could get an increased child tax credit in 2025, as payments would return briefly to the 2021 level funded by Biden’s coronavirus pandemic relief package. Homebuyers could get a tax credit worth up to $10,000 and $10 billion in down payment aid for first-generation buyers. Corporate taxes would jump upward, while billionaires would be charged a minimum tax of 25%.

Biden said in his State of the Union that Medicare should have the ability to negotiate prices on 500 prescription drugs, which could save $200 billion over 10 years. Aides said his budget does not specify how many drug prices would be subject to negotiations.

Biden’s plan would permanently keep Medicare solvent, according to aides, but as noted by Maya MacGuineas, president of the fiscal group Committee for a Responsible Federal Budget, it does not appear to fix Social Security, which projections say will be unable to pay full benefits starting in 2033.

The proposal would provide about $900 billion for defense in fiscal 2025, about $16 billion more than the baseline.

The Biden administration is still seeking money to help Ukraine defend itself against Russia and aid for Israel. His budget plan reiterates the supplemental funding request made last October for Ukraine, Israel and humanitarian relief for Palestinians.

What else Biden’s budget proposal will provide

It’s also requesting funding to expand personnel and resources at the U.S. southern border. Still, military spending over 10 years would decline $146 billion to $9.57 trillion.

One key theme in the budget plan is an effort to help families afford their basic needs, as the impact of inflation hitting a four-decade high in 2022 continues to leave many voters feeling as though they’re worse off under Biden.

The budget proposal includes $258 billion to help build or preserve 2 million homes, helping to address a national shortage that has kept housing prices high. Parents making under $200,000 annually would have access to child care, with most eligible families paying no more than $10 a day.

It would eliminate origination fees on government student loans, possibly saving borrowers $1,000 over the life of the debt. It also includes $12 billion to help universities develop strategies for reducing their costs.

All of this is a chance for Biden to try to define the race on his preferred terms, just as the all-but-certain Republican nominee, Donald Trump, wants to rally voters around his agenda.

Trump’s economic platform ahead of 2024 general election

Trump, for his part, would like to increase tariffs and pump out gushers of oil. He called for a “second phase” of tax cuts as parts of his 2017 overhaul of the income tax code would expire after 2025. The Republican has also said he would slash government regulations. He has also pledged to pay down the national debt, though it’s unclear how without him detailing severe spending cuts.

In a Monday interview with CNBC, Trump indicated that he would be willing to reduce spending for Social Security, Medicare and Medicaid, though he did not offer a full policy.

“There is a lot you can do in terms of entitlements, in terms of cutting,” Trump said.

The interview drew Biden’s attention, prompting him to tell the audience in New Hampshire that cuts were off the table: “The bottom line is he’s still at it. I’m never going to allow that to happen.”

House Republicans on Thursday voted their own budget resolution for the next fiscal year out of committee, saying it would trim deficits by $14 trillion over 10 years. But their measure would depend on rosy economic forecasts and sharp spending cuts, reducing $8.7 trillion in Medicare and Medicaid expenditures. Biden has pledged to stop any cuts to Medicare.

Meanwhile, Congress is still working on a budget for the current fiscal year. On Saturday, Biden signed into law a $460 billion package to avoid a shutdown of several federal agencies, but lawmakers are only about halfway through addressing spending for this fiscal year.

___

Boak reported from Washington. Associated Press writer Colleen Long in Washington also contributed to this report.

 

United States News

Associated Press

Stock market today: European shares open higher after retreat in Asia

Shares opened higher in Europe on Thursday after a retreat in Asia as rising bond yields weighed on stock prices. Germany’s DAX edged 0.1% higher to 18,486.92 and the CAC 40 in Paris rose 0.3% to 7,956.50. Britain’s FTSE gained 0.3% to 8,204.61. The future for the S&P 500 was down 0.4% while that for […]

3 hours ago

Associated Press

Jurors in Trump’s hush money trial zero in on testimony of key witnesses as deliberations resume

NEW YORK (AP) — The jury in Donald Trump’s hush money trial is to resume deliberations Thursday after asking to rehear potentially crucial testimony about the alleged hush money scheme at the heart of the history-making case. The 12-person jury deliberated for about 4 1/2 hours on Wednesday without reaching a verdict. Besides asking to […]

6 hours ago

Alito...

Associated Press

Alito rejects calls to quit Supreme Court cases on Trump and Jan. 6 because of flag controversies

Justice Samuel Alito is rejecting calls to step aside from Supreme Court cases involving former President Donald Trump and Jan. 6 defendants, saying his wife hoisted the two controversial flags that flew above their homes.

8 hours ago

Nissan...

Associated Press

Nissan warns owners of older vehicles about risk of exploding air bag inflators

Nissan is urging the owners of about 84,000 older vehicles to stop driving them because their Takata air bag inflators have an increased risk of exploding in a crash and hurling dangerous metal fragments.

9 hours ago

Associated Press

Seattle police chief dismissed from top job amid discrimination, harassment lawsuits

SEATTLE (AP) — Seattle’s embattled police chief has been dismissed, Mayor Bruce Harrel said Wednesday. Harrell said at a news conference that he met with Police Chief Adrian Diaz on Tuesday and they agreed Diaz should step down. He will work on special assignments for the mayor with the police department, Harrell said. Diaz’s departure […]

10 hours ago

Associated Press

Disneyland performers’ vote to unionize is certified by federal labor officials

ANAHEIM, Calif. (AP) — Character and parade performers at Disneyland in California are officially unionized. Federal labor officials said Wednesday that they’ve certified the results of a three-day election that took place earlier this month in Anaheim. Actors’ Equity Association will represent roughly 1,700 performers and assistants who help bring Disney’s popular characters to life […]

10 hours ago

Sponsored Articles

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Biden’s budget proposal offers tax breaks for families, plus lower health care costs