Specifically, persons with assets of more than $ 100 million would have to pay a minimum of 25 percent tax. Current tax rules allow for many loopholes, resulting in many of the wealthiest Americans paying less in taxes than an average household.
The draft budget also includes a nominal increase in defense spending to a record $842 billion. That is an increase of 3.2 percent compared to 2022. In addition, another USD 6 billion will be earmarked for support to Ukraine, NATO and the European allies. “I will not allow the needs of the intelligence community and our military to be curtailed,” Biden said.
The draft budget totals $6.9 trillion in spending. The budget deficit would then be about $1.8 trillion.
The proposal is a first step in the difficult budget negotiations, which usually drag on for months. However, it is Congress that has the final say. The Democrats no longer have a majority in the House of Representatives, so the budget in this version does not seem to have a chance of success.