Biden’s budget proposal for the fiscal year beginning October 1 sets out his administration’s priorities, but it’s just a wish list as lawmakers on Capitol Hill make the final budget decisions.
The document will show Biden’s intentions as he tries to stop Russia’s invasion of Ukraine and prepares for the Nov. 8 midterm elections, in which his Democratic Party could lose control of Congress.
“The President’s budget will reflect three important values: financial responsibility, security at home and abroad, and the desire to build a better America,” a White House spokesman said.
Biden will take the opportunity to voice his support for the first time for a new tax requiring billionaires to pay at least 20% of their income in taxes, including on investment income that has not been sold.
The White House says the tax will apply to 0.01% of US households with wealth greater than $100 million, and that more than half of the new income will come from households over $1 billion. This measure will cut the state budget deficit by $360 billion over the next decade.
Biden has long promoted the idea that the US tax system rewards the rich too much and that the rich should pay more for social services.
In February, two sources told Reuters that some $773 billion would be allocated to the Department of Defense, which, combined with other spending, would push the total national security budget to over $800 billion.
Russia’s invasion of Ukraine on Feb. 24 heightened concerns about European security as the Biden administration continues to invest in research and development of hypersonic missiles and other advanced capabilities.
The United States does not engage directly against Russia in the war in Ukraine, but provides Kiev with weapons and extensive assistance. Working with European allies, he has also imposed tough economic sanctions on Russia.
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