The world’s economies have been shaken by the Corona pandemic. Most of the countries have announced relief packages for their citizens, as millions of people have lost their jobs or found it difficult to survive. America has also not been safe from all these losses, and its economy is also in bad shape. Inflation has increased a lot, many people have become unemployed, and business is at loss. All American citizens have high hopes for the newly elected President Joe Biden. That he will take some good steps and boost the American economy. This is the first budget after US President Joe Biden won. He has focused on many factors in the budget; some of them are the proper functioning of the Pentagon and other government offices, climate change, and taxing the rich more.
This first budget of Biden as President is considered to be a setback for the rich because it has been asked to collect more taxes from them. The $ 6 trillion budget presented by Joe Biden is yet to be approved by Congress there, and former President Donald Trump has given his response, saying that this budget will put the country in debt. Republican Senator Lindsey Graham, reacting to the budget, said the debt would reach 117% of GDP by 2031, the highest since World War II. In the budget, the personal income tax rate has been increased by 37 percent to 39.9. The new rate will apply to couples with a shared income of more than $5,09,300 and singles with an income above $4,52,700. Similarly, capital gains tax and inheritance tax are proposed to be increased.
The corporate tax rate has been proposed to be increased from the existing 21 percent to 28 percent. The president’s tax proposals have been described as the most ambitious announcement in modern American history. Through these proposals, Joe Biden has presented a plan to raise $ 3.6 trillion from wealthy Americans and the corporate sector. Biden’s government seeks to promote investment priorities in infrastructure, child care, and other public works in a national reconstruction effort. It is estimated that the US budget deficit will be $1.8 trillion by 2022, although the Whitehouse hopes that Joe Biden’s steps in the budget by increasing corporate taxes for large companies and higher-income will help prevent imbalances in the public coffers.
Few Main Key points of Budget
First of all, the budget is the provisions of the management to be adopted to deal with the corona pandemic. Issues related to Corona have been given priority. Prioritized many important issues like Health, climate change, education, public transport, and technology. The White House says that this budget will remove the slowdown of the economy and give it momentum. This budget is perfect in every sense. When we compare Biden’s budget proposal with past presidents, then this proposal seemed very different, big, and ambitious. Earlier, President Obama’s budget proposal was $3.6 trillion in 2009 and President Donald Trump’s budget proposal in 2020 was $4.8 trillion.
1. To fight with global warning and produce clean energy 800 billion dollars
2. 200 billion dollars to provide free education to 3rd and 4th class children’s
3. $109 billion for two years of community college for all citizens
4. $225 billion for national paid family and medical leave program
5. $115 billion for road and bridges
6. $160 billion for the public transport system
7. $100 billion in the budget to provide broadband internet access to every American
8. $ 36.5 billion investment plan in high-poverty schools, help to increase the quality of education and resources for students.
9. $ 10.7 billion to fight Opioid pandemic
10. $ 30.4 billion for the homeless and those persecuted by domestic violence