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The Biden administration presented its proposed budget for 2024 in the amount of 6,8 trillion. dollars

The project, on the one hand, involves increasing spending on defense and social spending, and on the other, is aimed at reducing the budget deficit. Biden wants to spend an additional 2 trillion. for various measures within the country, and to pay for them through additional revenues amounting to 4,5 trillion, mainly through taxes on corporations and the richest Americans. At the same time, the budget deficit should decrease by almost 3 trillion. within 10 years.


What is inside:

●‎ Reinstatement of child benefits introduced in 2021 in the amount of $3600 up to 6 years old and $3000 over 6 years old;

●‎ Fixing the price of insulin at $35 for all Americans, as well as reducing the price of other drugs for seniors. Previously, Congress passed the Inflation Reduction Act, which set this price only for Medicare recipients;

●‎ Permanent status for expanded Obamacare subsidies due to expire by 2025. They increase the income threshold for qualifying for government subsidies for health insurance. The program also works in states that have refused to expand Medicare;

●‎ 15 billion for a program of free breakfasts and lunches in schools, which will feed 9 million children;

●‎ 471 million aimed at programs to reduce maternal mortality and access to obstetric care in rural areas. Medicaid will provide women with health insurance for 12 months after giving birth, rather than the previous 60 days;

●‎ The Ministry of Health will demand money from private insurance companies if the amount in the insurance package greatly exceeds the cost of medical services;

●‎ Increasing the maximum amount of Pell grants for low-income students and 500 million for programs providing free two-year higher education;

●‎ A new program to help states provide free universal preschool education;

●‎ Nationwide system of sick and family leave for up to 12 weeks;

●‎ Increase in the Pentagon budget by 3,2%, including the allocation of an additional $6 billion to Ukraine and the United States' European NATO allies;


How to pay for it?

- 25% tax on the income of Americans whose total wealth exceeds $100 million (approximately 0,01% of US residents);

- Increase in corporate income tax from 21% to 28%. It also includes a reduction in incentives to register profits in countries with low taxes. The tax on foreign income will increase from 10,5% to 21%, and the tax on the repurchase of own shares by companies - from 1% to 4%;

- The upper income tax bracket for individuals with incomes above 400-450 thousand dollars will increase from 37% to 39,6%. Capital gains over $1 million will be taxed the same as earned income, and the tax loophole that allows investment managers to declare their compensation as interest on capital will be closed;

—‎Medicare's hospital trust fund, known as Plan A, will get extra money by being able to negotiate drug costs and a new tax on Americans earning more than $400 a year. Funds from increasing the tax on net investment income over $400 from 000% to 3,8% will also go there. In addition, it will be charged to the owners of the so-called. "pass-through firms" that include business income on their personal tax returns and are not currently taxed.


Author: Yan Veselov