President Biden sets out $6tn budget plan

President sets out $6tn spending plan
Mr Biden will need Congress to pass his plan before it become. Source: Getty Images
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Daily US Times: US President Joe Biden has released his first annual budget – a $6 trillion spending plan that includes steep tax increases for wealthier Americans.

The bumper proposal would include investment in the fight against climate change and huge new social programmes.

But it needs Congress approval, where powerful Republican Senator Lindsey Graham condemned it as “insanely expensive”.

Under the plan, debt would reach 117% of GDP by 2031, surpassing levels during World War Two.

That would be in spite of at least $3 trillion in proposed tax increases on capital gains, corporations and the top income tax bracket.

Former President Donald Trump also ran up the deficit each year he was in the White House, and his final annual spending proposal had a price tag of $4.8tn.

The Biden proposed budget plan includes a $1.5tn request for operating expenditures for the Pentagon and other government departments.

It also incorporates two plans he has previously publicised: his $1.8tn families plan and $2.3tn jobs plan.

Mr Biden said his budget “invests directly in the American people and will strengthen our nation’s economy and improve our long-run fiscal health”.

This budget promises:

  • More than $800bn for the fight against climate change, including investments in clean energy
  • $225bn for a national paid family and medical leave programme – bringing the US in line with comparable wealthy nations
  • $115bn for roads and bridges and $160bn for public transit and railways
  • $200bn to provide free pre-school places for all three and four-year-olds
  • $109bn for two years of free community college for all Americans
  • $100bn to improve access to broadband internet for every American household
  • The budget also has a noticeable absence: the Hyde Amendment, a federal provision that says taxpayer money cannot fund abortions in US states except in cases of rape and incest.

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