Biden proposes $6 trillion budget as part of administration’s plan to overhaul U.S. economy

President Biden has proposed a $6 trillion budget for the fiscal year starting Oct. 1, part of a plan to overhaul the U.S. economy that would also mean running up deficits of at least $1.3 trillion a year for the rest of the decade despite new tax increases on the wealthy.

The proposal is the biggest budget in recent history, reflecting the massive government spending plans Biden rolled out this spring in his push to bolster the middle class and make the United States more competitive with China: his $1.5 trillion discretionary budget, which would increase funding for education, the IRS and the Centers for Disease Control and Prevention, among other things; the $2.3 trillion American Jobs Plan investing in infrastructure, currently under negotiation with Congress; and the $1.8 trillion American Families Plan, which includes spending on universal preschool and two years of free community college.

Much of the new spending would be paid for with proposed tax increases on the wealthy and on corporations. However, the administration projects that the federal government will still run deficits of more than $1.3 trillion per year over the coming decade before the budget begins to trend back toward balance. In remarks delivered Thursday in Cleveland, Biden made the case for what he describes as an investment in the country’s future.

“Now is the time to build [on] the foundation that we’ve laid to make bold investments in our families and our communities and our nation,” he said. “We know from history that these kinds of investments raise both the floor and the ceiling over the economy for everybody.”


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