US President proposes $7.3 trillion budget, record spending on defense

According to AFP, the government's proposed budget, unveiled by President Joe Biden on March 11, includes several items that had been previously proposed but not passed, such as a minimum tax rate of 25% for the wealthiest Americans and an increase in corporate taxes from 21% to 28%.

Tổng thống Mỹ đề xuất ngân sách 7.300 tỉ USD, chi kỷ lục cho quốc phòng- Ảnh 1. — President Joe Biden proposes $7.3 trillion budget for fiscal year 2025

Those earning less than $400,000 a year would pay no taxes under the new proposal, while those with assets exceeding $100 million would have to pay at least 25% of their income in taxes.

In addition, the government plans to increase spending on social welfare programs, reinstate a child tax credit, and allocate nearly $260 billion to build or preserve 2 million homes.

The proposed budget for defense and national security is $895 billion, a 1% increase from the previous year. Of this, $850 billion will be allocated to the Pentagon.

Reuters, citing a statement from the US Treasury Department, reported that Biden's proposed budget would raise tax revenues by $4.951 trillion over 10 years, including more than $2.7 trillion from corporate taxes and nearly $2 trillion from taxes on the wealthy and real estate, among other sources.

According to White House projections, if the proposal is approved, the US budget deficit will increase by $1.8 trillion in 2025, equivalent to 6.1% of GDP, before falling below 4% in the next 10 years. The total US budget deficit currently stands at $34.5 trillion.

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According to Axios , President Biden is using the proposed budget to refine the core of his campaign promises made over the past months, while also pushing Congress to provide funding for aid to Ukraine, Israel, and for border security.

With the 2024 budget still stalled in Congress and not yet fully passed, Biden's proposal is unlikely to be approved before the end of fiscal year 2024 on September 30. However, the proposal would allow him to clarify his plans and priorities for a second term in the context of this year's presidential election.

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