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Biden's new budget proposal includes money for police, military and minimum income tax on billionaires

Taxes IRS AP
Posted at 9:36 AM, Mar 28, 2022
and last updated 2022-03-28 15:32:06-04

WASHINGTON, D.C. — President Joe Biden's new budget proposal includes billions of dollars for domestic and foreign causes.

Biden proposes $30 billion in mandatory spending to support law enforcement, crime prevention and adding more officers on the streets.

"The answer is not to defund our police," Biden said Monday.

The president is also asking for $773 billion for the Department of Defense. That's an increase of nearly 10%.

In addition, Biden is proposing the "Billionaire Minimum Income Tax," which would impose a minimum tax of 20% on households worth more than $100 million.

The White House documents, released Saturday, state that the “minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters."

"A firefighter and a teacher pay more than double the tax rate that a billionaire pays," Biden said.

The White House estimates that the tax will reduce the deficit by $360 million over the next 10 years.

The overall FY2023 budget is expected to reduce the deficit by more than $10 trillion over the same time span.

The new billionaire tax is only expected to affect the “top one-hundredth of 1 percent of American households,” according to the New York Times.

Also in the proposal, lower deficits reflect the economy’s resurgence as the United States emerges from the pandemic, as well as likely tax law changes would raise more than enough revenue to offset additional investments planned by the Biden administration.

It’s a sign that the government’s balance sheet will improve after a historic burst of spending to combat the coronavirus.

However, the Biden administration doesn't plan on ignoring the virus. The Centers for Disease Control would get more than $10 billion in funding.

The CDC says that money would help "establish a Vaccines for Adults program and to invest in pandemic preparedness."