Biden Aims to Increase Military and Social Spending in 2023 Budget

Biden Aims to Increase Military and Social Spending in 2023 Budget

As part of President Biden's fiscal 2023 budget, he will call for more military spending faced with Russian aggression toward Ukraine, funding for child care and police departments, and new taxes on the wealthy.

On Monday, Mr. Biden will unveil his final legislative proposal, the last salvo in what is expected to be a bloody midterm election season for Democrats.

He plans to ask Congress to help his administration tackle some of the voters' most significant concerns, like inflation, which dented consumer confidence and worsened an already bad economy. President's budget is expected to reduce energy, health care, child care, and other costs for families. However, it is not clear what the administration will propose.

As part of the budget, additional funds will be requested to help combat the international crisis caused by Russia's invasion of Ukraine, which could stifle global growth.

Biden's proposal will request $813.3 billion, a rise of $31 billion, or 4 percent, from 2022. Research and development funding for the Defense Department includes approximately $4.1 billion and nearly $5 billion for a missile warning system, and almost $2 billion for missile defense interceptors to counter threats from North Korea and Iran.

The budget is not binding on Congress. Last year, Joe Biden's Build Back Better plan had to be scaled back because of opposition from moderate Democrats because of budget and tax priorities.

If the president's budget proposal includes a plan for getting his agenda through Congress by a slim majority, the administration's priorities are unclear. As per White House officials, the budget will echo Mr. Biden's State of the Union address, which focused on the Russian invasion of Ukraine and listed his domestic policy proposals without the phrase Build Back Better, as some officials are hesitant to use it.

The budget calls for a minimum tax on billionaires paying at least 20 percent on their income and unrealized gains on their liquid assets, such as stocks and bonds, which gain value over time but are taxed only once sold off. It could also go toward the president's broader plan.

Ms. Rouse, Chair of the White House's Council of Economic Advisors, said last week that Biden is looking to boost access to child care, prescription drugs, and health care and fight climate change without increasing debt.

In addition to making these types of investments as a stimulus, which are deficit-financed, Ms. Rouse said President Obama wants to reduce the deficit. 'And his budget will show that.'

A lot of attention will go to the White House's economic growth and inflation projections. In addition, the forecasts may have political implications.

Janet L. Yellen admitted on Friday that the global economy is running into headwinds and that Russia's invasion of Ukraine could cause inflation in energy and food prices around the world. The economist, however, predicted that the U.S. economy would remain strong despite these concerns.

CNBC reported that the economy grew extraordinarily in the past year. Typical American families have a healthy balance sheet."