Biden unveils a budget that would cut costs for families and hike taxes for the rich
The White House unveiled a new $7.3 trillion federal budget proposal on Monday, a plan that would hike taxes on billionaires and large corporations to pay for programs that would cut costs for families.
Presidential budgets generally are not blueprints for bills that will ever become law. Presidents are required by law to release a budget and the practice has become an opportunity to put price tags on White House spending proposals. It's up to Congress to pass actual spending bills, since it has the power of the purse in the Constitution.
But the budget sends a message to voters — and to lawmakers, Shalanda Young, the director of the U.S. Office of Management and Budget, told Morning Edition's A Martinez.
"What that means is this president, unlike many who talk about fiscal responsibility, pays for every investment in the budget," Young said on NPR. "So we call on Congress: if they want to do something about our fiscal path, take up the president's budget. Ask the wealthiest in this country to begin to pay their fair share."
Young said the budget would cut taxes for millions of low and middle income families and would bring down the costs of prescription drugs and utility bills.
House Republican leaders dismissed the proposal, calling it "misguided" and full of "reckless spending."
The budget puts a price tag on Biden's plans from his State of the Union address
The budget builds on the State of the Union address Biden delivered last week, in which he outlined his administration's accomplishments and made the case for voters to reelect him, with a heavy dose of economic populism. It included tax credits for first-time homebuyers.
Speaking to the National League of Cities Monday, Biden said his plans would raise billions of dollars to help provide things that Americans need, like childcare, while also cutting the deficit.
"Look, I'm a capitalist. If you can make a billion bucks — wonderful," Biden said. "Just pay your fair share, man."
A debate on taxes is on the horizon
The plan would raise taxes on large corporations and make billionaires pay a minimum 25 percent rate, which would help reduce the federal government's budget deficit by some $3 trillion over a decade, the White House said.
"Congressional Republicans are on notice: You can't give your friends on Wall Street tax cuts, add to the debt, while middle-class and working families suffer," Young said.
Young said lawmakers will be pushed to have this debate soon, with several provisions of Republicans' 2017 tax law — which gave sweeping tax cuts to big corporations — set to expire next year. Biden will not support extending tax cuts for those that make over $400,000, Young said.
The president also wants to work with Congress on a mortgage reduction credit, which would give a $10,000 tax break to first-time homebuyers and people who sell their starter homes, among others.
"Families who are locked into mortgage rates that may be a bit higher but need to get to a bigger place — you have two kids and a third may have come along and you need a bigger place — we need to give these families a bridge so they can move to larger homes," Young said.
The broadcast interview was produced by Ben Abrams, Ana Perez and Shelby Hawkins.
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Transcript
A MARTÍNEZ, HOST:
Fresh from his State of the Union address, President Biden is ready to give Congress his wish list for America's next budget. Now, like all presidential budgets, it's an outline of the administration's values, with virtually no chance of passing a deeply divided Congress. Now, the White House says it would cut the deficit by about $3 trillion over the next 10 years, while still protecting Social Security and Medicare and lowering costs for families. How to make all that work - the government would collect more taxes from big corporations and the wealthiest people in the country. Joining us now for a preview is White House Budget Director Shalanda Young. The president says he wants to use the power of the government to lower costs on things such as child care and prescription drugs. How much of that means more government spending?
SHALANDA YOUNG: Thank you so much for having me today. As you pointed out, the president is going to release his 2025 budget next year. And you're right, this is about values. What do you value in this country? This president has been very clear. His goal and his entire economic ethos is to build the middle class, help working families, lower costs, and this president does so by expanding on our prescription drug benefit that was passed as part of the Inflation Reduction Act. You heard him on Thursday outline a new mortgage reduction credit in order to give families a bridge as interest rates are coming down. This president - very clear what he values. Congressional Republicans are very clear about what they value. This president puts the middle class and working families ahead of the wealthiest in this country.
MARTÍNEZ: To do what he wants to do, though, does that mean there has to be more government spending?
YOUNG: What that means is this president, unlike many who talk about fiscal responsibility, pays for every investment in the budget. On top of that, the president would have an additional $3 trillion in deficit reduction. So he takes a backseat to no one about fiscal responsibility. He's overseeing a trillion dollars in deficit reduction. He's put forth a budget that has an additional $3 trillion in deficit reduction. So we call on Congress - if they want to do something about our fiscal path, take up the president's budget, ask the wealthiest in this country to begin to pay their fair share.
MARTÍNEZ: You said you call on Congress. How do you call on Republicans in Congress to be on board with this?
YOUNG: Look, our job is to put forth our values. And this president has made clear where he stands. And we're going to have a debate about this very soon, when the 2017 tax law that added $2 trillion to the debt comes up for renewal. And this president has made very clear that he will not support extending tax cuts for those that make over $400,000, the top 1- and 2% should pay their fair share, and that way, that will pay for tax cuts for those that make under $400,000. And we're going to have that debate. And it's important that the president puts out a values document, which this budget is so people are on notice. Congressional Republicans are on notice. Uh, you can't give your friends on Wall Street tax cuts, add to the debt, while middle-class and working families suffer.
MARTÍNEZ: Now, President Biden mentioned during the State of the Union last week that he wants to see housing costs go down. How can the federal government make that happen?
YOUNG: I just touched on this a little. We're going to ask Congress to work with us on a mortgage reduction credit. We know interest rates are coming down over the next two years. This is what we call a bridge. So families who are locked into mortgage rates that may be a bit higher, but need a bigger place. You have two kids, and a third may have come along, and you need a bigger place. We need to give these families a bridge so they can move to larger homes. That also helps families who are looking to enter into the housing market for the first time, freeing up housing stock. So we think this is a win-win for the American people.
MARTÍNEZ: All right. That's White House budget director Shalanda Young. Thank you very much.
YOUNG: Thank you so much. Transcript provided by NPR, Copyright NPR.
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