Mr. Biden has pledged not to raise taxes on people earning less than $400,000 a year. The budget, though, assumes that tax cuts passed by Republicans in 2017 would expire as scheduled at the end of 2025, which would raise taxes on most Americans. On Friday, Biden administration officials said the president would work with Congress before 2025 to ensure people earning less than $400,000 would not face a tax increase.
The budget is both a collection of Mr. Biden’s ambitious economic proposals from his first months in the White House and, on multiple fronts, a repudiation of his predecessor, Donald J. Trump. Where Mr. Trump’s budgets pushed tax cuts, future spending reductions and unfulfilled promises of sustained, accelerated economic growth, Mr. Biden’s promises the dawn of an era of federal taxation and spending previously unseen in the United States outside of times of war or pandemic.
Where Mr. Trump sought to slash more than $1 trillion in federal spending on Medicaid and Obamacare, and rein in spending on Medicare, Mr. Biden’s budget proposes an additional half-trillion in spending for home health workers and federal subsidies for low- and middle-income Americans to buy health insurance.
And while Mr. Trump sought to pull back from government action on climate change, Mr. Biden proposes about $1 trillion on climate-related initiatives, including infrastructure improvements meant to power the nation’s transition to an economy powered less by fossil fuels and more by lower-emission energy sources.
- A new year, a new budget: The 2022 fiscal year for the federal government begins on October 1, and President Biden has revealed what he’d like to spend, starting then. But any spending requires approval from both chambers of Congress.
- Ambitious total spending: President Biden would like the federal government to spend $6 trillion in the 2022 fiscal year, and for total spending to rise to $8.2 trillion by 2031. That would take the United States to its highest sustained levels of federal spending since World War II, while running deficits above $1.3 trillion through the next decade.
- Infrastructure plan: The budget outlines the president’s desired first year of investment in his American Jobs Plan, which seeks to fund improvements to roads, bridges, public transit and more with a total of $2.3 billion over eight years.
- Families plan: The budget also addresses the other major spending proposal Biden has already rolled out, his American Families Plan, aimed at bolstering the United States’ social safety net by expanding access to education, reducing the cost of child care and supporting women in the work force.
- Mandatory programs: As usual, mandatory spending on programs like Social Security, Medicaid and Medicare make up a significant portion of the proposed budget. They are growing as America’s population ages.
- Discretionary spending: Funding for the individual budgets of the agencies and programs under the executive branch would reach around $1.5 trillion in 2022, a 16 percent increase from the previous budget.
- How Biden would pay for it: The president would largely fund his agenda by raising taxes on corporations and high earners, which would begin to shrink budget deficits in the 2030s. Administration officials have said tax increases would fully offset the jobs and families plans over the course of 15 years, which the budget request backs up. In the meantime, the budget deficit would remain above $1.3 trillion each year.
Mr. Biden also seeks to expand the government safety net in an effort to help Americans — particularly women of all races and men of color — work and earn more, rather than relying on corporate America to funnel higher wages to workers.
The budget reflected investments in the middle class “and the pathways to the middle class,” the acting director of the White House budget office, Shalanda Young, told reporters.
Congress will decide how much, if any, of Mr. Biden’s proposals to write into law. The president has a narrow window of opportunity to push them through. Democrats control the House and the Senate by slim margins. Republicans have balked at Mr. Biden’s plans to raise taxes on high earners and corporations and at much of his spending agenda, though some Senate Republicans are negotiating with the president over a potential deal to invest in physical infrastructure, like roads and bridges.