US President Joe Biden’s budget proposal comes as his approval ratings suffer amid high inflation and the uncertainty caused by the Covid-19 pandemic
The United States would allocate billions of dollars in aid to Ukraine, tax the wealthy and lower its deficit under a budget proposal President Joe Biden unveiled on Monday.
The massive $5.8 trillion plan would pay for many of Biden’s policy proposals, as his administration struggles with low approval ratings, a record inflation wave and ongoing uncertainty linked to the Covid-19 pandemic.
“Budgets are statements of values,” Biden said, as he announced the measure.
Among its provisions are a $6.9 billion infusion of funding for Ukraine to assist in defending against Russia’s invasion, as well as to aid NATO. Another $1 billion would go towards Washington’s efforts to counter Moscow’s influence.
“This minimum tax would apply only to the wealthiest 0.01 percent of households — those with more than $100 million — and over half the revenue would come from billionaires alone,” the White House said in a statement.
All told, the proposal would lower the US budget deficit by $1.3 trillion next year, though the $24.8 trillion national debt would continue to increase, according to projections published by the White House.
While the US economy has regained much of the ground it lost to the Covid-19 pandemic since Biden took office last year, his approval ratings have suffered after supply chain snarls, rising oil prices and strong consumer demand sent inflation climbing to levels not seen since the 1980s.
The budget resurrects a proposal first mulled during negotiations over the bill to raise the corporate tax rate to 28 percent, reversing legislation passed under Biden’s Republican predecessor Donald Trump in 2017 that lowered it to 21 percent in a bid to supercharge businesses.
Less controversial is the proposed $6.9 billion infusion meant to “enhance the capabilities and readiness of US forces, NATO allies and regional partners in the face of Russian aggression,” according to the White House.
Washington has also backed a deal negotiated under the auspices of the Organisation for Economic Co-operation and Development that would put a 15 percent minimum tax on corporations globally.
Originally published as US would up aid to Ukraine, tax rich under Biden’s proposed budget