New Biden budget ups taxes, spending

President Joe Biden said his latest budget blueprint unveiled Monday conveys a clear message about what the administration values: “fiscal responsibility, safety and security, and investments needed to build a better America.” It calls for higher taxes on corporations and the wealthy along with more spending on his domestic priorities and on defense.

What is in the plan? Biden is proposing a total of $5.8 trillion in federal spending in fiscal 2023. That would generate a budget deficit of more than a trillion. But the president insists it’s still fiscally responsible because the deficit would be lower than in recent years. His budget includes $795 billion for defense and $915 billion for domestic programs. The balance would go to mandatory spending on things like entitlement programs and interest on the national debt. The proposal includes a top individual tax rate of nearly 40 percent, but Biden again pledged no one making less than $400,000 per year will pay extra taxes. He also wants to raise the corporate tax rate from 21 percent to 28 percent, and critics say consumers ultimately pay corporate taxes in the form of higher prices.

Dig deeper: Read Esther Eaton’s report in the Stew about IRS delays amid tax season.