Biden proposed a $6 trillion budget on Friday. This gave a fuller financial picture from that of April when he presented his spending priorities.
Biden’s proposed plan provides details of the taxes and spending of the White House for the fiscal year, starting October.
The ten-year proposal provides details of the spending that the U.S. will make on infrastructure, child care, education, and other domestic affairs; Biden calls these the “American Families Plan” and “American Jobs Plan.”
Now, it is up to Congress to decide whether these plans will get implemented.
Record-breaking Debt
Biden’s proposed budget would increase the federal debt to a level higher than during World War II.
During World War II, the U.S. debt peaked at 106% in 1946. Meanwhile, under Biden’s proposal, U.S. debt is expected to climb to 117% by 2031.
Highest debt since WWII, looming fight on taxes: Takeaways from Joe Biden's budget: Biden's budget projects the debt would surge, relative to economy's size, to its highest level since World War II, reigniting GOP attacks. https://t.co/zsFzCT2M2k pic.twitter.com/wOZBENumdr
— @PhuketDailyNews (@PhuketDailyNews) May 28, 2021
Although by 2031, the debt is expected to decline relative to the size of the economy. The projected decrease in U.S. debt is partly due to Biden’s ambitious agenda of asking Americans for higher taxes.
This particularly impacts corporations, as well taxes the “wealthiest households.”
Lowering Public Insurance Enrollment
Biden campaigned to lower the enrollment age for Medicare and build a public insurance option during the campaign period. Although these promises sound ideal and good, he did not include how he could make it happen.
So far, the proposal only asks Congress to take action to lower the cost of prescription drugs and help improve health care coverage.
The plan mentioned that the money saved from decreasing the amount that Medicare prescription drug fees could cover the expansion of health care; however, Democrats are divided as to how Congress can address the rising drug prices and how the savings should be spent.
Abortion funding
In his latest financial move, Biden triggered anti-abortion activists. Yet, he pleased those that support abortion rights as he did not include the ban on federal funding of abortions in his first budget request.
Biden’s decision on this issue is noteworthy. Being a self-proclaimed “devout Catholic” and a long-term supporter of the ban, he suddenly reversed his position during his presidential campaign in 2020.
Biden’s proposals, a reversal of Trump’s priorities
Biden’s budget proposals are a reversal of the priorities of the former Trump administration’s budget plans.
The previous administration asked Congress for higher military spending. They also decreased spending on domestic programs.
In comparison, Biden is also asking for a small increase for the Pentagon and instead gave a big budget boost to education, environment, housing, public health, and more.
McCarthy on Biden's budget: "Today, President Biden submitted the details of a budget that promises higher taxes, higher prices, crushing debt, and less security. It is the most reckless and irresponsible budget proposal in my lifetime." https://t.co/shfkgvbQ5U
— Craig Caplan (@CraigCaplan) May 28, 2021
Meanwhile, the budget proposal set forth by the president received mixed reactions from Congress.
For instance, House Speaker Nancy Pelosi stated that the budget would create “historic investments” in the economy and the American workforce.
On the other hand, House Minority Leader Kevin McCarthy called it “the most reckless” and “irresponsible” budget proposal.
