US: Biden presents $6.8 trillion budget, proposes raising taxes

US President Joe Biden presented his budget for the fiscal year 2024. It includes a plan to cut $3 trillion from the fiscal deficit over the next decade and higher taxes on wealthy people and large corporations.

More revenue would come from an increase in the corporate tax rate to 28%, hiking taxes on oil and gas companies and allowing Medicare to negotiate drug prices. The 2024 budget totals $6.8 trillion in spending, slightly above the current year.

The budget sets the stage for a battle between Democrats and Republicans, that control the House of Representatives. Still, Congress has to pass an increase to the debt ceiling. Republicans oppose raising taxes and their leaders said they won’t seek reductions to Social Security or Medicare.

The budget’s blueprint projects an annual deficit of more than $1 trillion each year through 2033 (deficits between 4.6% and 6.8% of GDP), with the debt-to-GDP ratio reaching 109% by that year. It assumes an annual growth of 1.5%.