Biden aims to reduce the budget deficit by nearly $3 trillion

WASHINGTON, March 8 (Reuters) – President Joe Biden’s budget proposal on Thursday would cut the U.S. deficit by nearly $3 trillion over 10 years.

The Democratic leader will propose raising taxes on companies and people making more than $400,000 a year in an effort to curb government red ink while protecting Social Security, Medicare and Medicaid from cuts.

“It proposes tax reforms to ensure the wealthy and big corporations pay their fair share while reducing wasteful spending by special interests like Big Oil and Big Pharma,” White House spokeswoman Karine Jean-Pierre told reporters Wednesday.

Biden, who is unusually willing to release his budget in the political swing-state of Pennsylvania, unveiled a $2 trillion deficit reduction figure during his State of the Union address last month.

Jean-Pierre did not provide details on how the extra $1 trillion would be financed, although the administration is expected to propose additional tax hikes on the wealthiest Americans and corporations.

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Analysts said the proposals are unlikely to gain quick support on Capitol Hill, where control of Congress is divided between Democrats and Republicans.

“This week, I will show Americans my full budget vision to invest in America, lower costs for families, and grow the economy without raising taxes on anyone making under $400,000,” Biden said on Twitter Wednesday. “I urge my Republican friends in Congress to do the same. Show the American people what you value.”

Reporting by Trevor Hunnicutt; Additional reporting by Katherine Jackson; Editing by Rami Ayyub, Heather Timmons and Lisa Schumacher

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