Biden budget would cut deficit by $3 trillion over next decade with 25% minimum tax on richest Americans

President Joe Biden released his budget on Thursday, vowing to cut $3 trillion from the federal deficit over the next decade, in part, by levying a 25% minimum tax on the wealthiest Americans.

Biden also raises more revenue by increasing taxes on oil and gas companies, hiking the corporate tax rate to 28%, up from 21% imposed under former President Donald Trump but below the 35% tax pre-2017, and allowing Medicare to negotiate drug prices.

With Biden likely to run for re-election in 2024, his budget is also a preview into his platform as a candidate and campaign pitch in the year ahead. Facing a Republican-controlled House, it’s unlikely many of the proposals will be passed in their current form. The president submits his budget to Congress outlining the administration’s priorities for the upcoming year, but ultimately Congress decides where the funds are allocated.

White House Office of Management and Budget Director Shalanda Young told reporters the administration is able to cut deficit spending “by asking the wealthy and big corporations to begin to pay their fair share and by cutting wasteful spending on big pharma, big oil and other special interests.”

“It does this in part by reforming our tax code to reward work, not wealth, including by ensuring that no billionaire pays a lower tax rate than a teacher or firefighter and by quadrupling the tax rate on corporate stock buybacks,” Young said. “That’s a very clear contrast with Congressional Republicans.”

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