Biden "Reduce Debt by $3 Trillion Over 10 Years"... Push for Wealth Tax Increase

President Joe Biden of the United States

U.S. President Joe Biden is set to unveil the fiscal year 2024 budget proposal on the 9th (local time), outlining a goal to reduce the federal government's deficit by approximately $3 trillion (3,948 trillion won) over the next decade, the White House announced on the 8th. To achieve this, President Biden plans to pursue so-called 'wealth tax increases.'

White House Press Secretary Karine Jean-Pierre mentioned this plan during a briefing, stating, "There is nearly a $6 trillion gap between the President's budget proposal and the Republican agenda." While President Biden intends to propose a budget that cuts the deficit by $3 trillion, the Republican plan is claimed to increase the deficit by $3 trillion.

The White House has pointed out that various tax plans supported by the Republicans would increase the debt by more than $2.7 trillion over the next decade.

President Biden aims to significantly reduce the federal government's debt by collecting more taxes from large corporations and the wealthy. Taxes for citizens earning less than $400,000 annually (approximately 520 million won) will be frozen, while tax increases will target high-income earners making over $400,000 per year. Previously, the White House announced plans to raise the Medicare tax rate for high-income earners making over $400,000 annually from the current 3.8% to 5.0%.

Press Secretary Jean-Pierre emphasized, "We see this as a statement of values," adding, "Ultimately, it is up to the House of Representatives to pass the budget bill, and the House is controlled by the Republicans."

Since the budget approval depends on the House Republicans, it appears unlikely that President Biden's budget proposal will pass in its original form.