The Facts
On Thursday, US Pres. Joe Biden unveiled a $6.8T budget proposal for the 2024 fiscal year and proposed new taxes on the wealthy, which the White House said will reduce the federal deficit by nearly $3T and set a record for defense spending.
The budget for the fiscal year starting in October would see individuals earning more than $400k pay 39.6% income tax, up from 37%, while the federal capital gains tax would nearly double from 20% to 39.6% for those earning over $1M.
The Spin
Democratic narrative
While undeniably ambitious, Biden’s plan is a credible spending package that would reduce the deficit and protect vital social insurance programs. Meanwhile, the GOP is holding the American economy hostage by refusing Democrats' proposals without presenting any of their own as an impending catastrophic default inches ever closer.
Republican narrative
Biden’s plan is not based in reality and is just a mechanism to raise taxes and grow the government. While the proposal would allegedly reduce the deficit by $3T over the next decade, it doesn't meaningfully cut spending to tackle the national debt, which the Congressional Budget Office projected will grow by more than $20T over the next 10 years.
