Biden budget has Manchin priorities: Tax rich, cut deficit
WASHINGTON (AP) — President Joe Biden's $5.8 trillion budget for next year would trim federal deficits and boost taxes on the wealthiest Americans. Both could appeal to Sen. Joe Manchin amid Democratic hopes of reviving talks with him over the party's derailed social and environment plan.
The question is whether this time, the pivotal West Virginia Democrat can be wooed to craft a scaled-down version of his party's roughly $2 trillion, 10-year package. Before Christmas, Manchin sank that plan, which had already passed the House, saying it would fuel inflation and deepen deficits.
Biden and his aides touted his budget, unveiled Monday, as focusing on fiscal responsibility, security at home and overseas and investments in social programs to help families afford housing, child care, health care and other costs.
Another highlight: $2.5 trillion in tax increases over 10 years on the highest-income people and corporations. That included $361 billion from a minimum 20% tax on families worth $100 million or more — the top one-hundredth of 1% of earners — though it drew some criticism from Manchin.
“An unprecedented commitment to building an economy where everyone has a chance to succeed. A plan to pay for those investments that we need as a nation," Biden described his budget to reporters.
Republicans rejected Biden’s priorities.
Senate Minority Leader Mitch McConnell, R-Ky., said the president’s defense proposal would at best “leave our armed forces simply treading water” because of inflation. He said bigger budgets for agencies like the IRS and the Environmental Protection Agency were “bloated liberal nonsense.” And he labeled Biden’s $2.5 trillion, 10-year tax boosts, which the president said would only affect the nation’s highest earners, a“ bomb of tax hikes.”
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