The Biden administration proposes extra spending in the budget that it argues will drive economic growth and job creation, as well as a number of tax revisions. Over the following decade, the Biden administration estimates that their budget will lower the deficit by more than $1 trillion.
Biden’s Federal Budget Proposal
President Joe Biden’s 2023 federal budget proposes more taxes on the ultra-rich and companies while increasing spending for the Defense Department and the Justice Department by billions of dollars. Biden’s budget proposal offered to Congress promises a $1 trillion decrease in the federal budget deficit over the next ten years.
This will be paid for in part by increasing the corporation tax rate from 21% to 28%, a number that progressive Democrats support but key moderates detest. Biden also recommends a new 20% minimum tax on the top 0.1% of earners and households with a net worth of well over $100 million.
Defense Department & Justice Department Spending Components
Biden proposed a $5.89 Trillion annual budget for the fiscal year of 2023. Approximately $31 billion is provided for the Defense Department to spend, which leads to a total sum of $813 billion dollars. According to the White House, $6.9 billion was distributed to NATO (The North Atlantic Treaty Organization), European defense, and Ukraine to refute Russia’s aggression.
As for the Justice Department, $20.6 billion was provided. $32 billion was directed towards fighting crimes at home and lastly $10.6 billion was provided for global health security such as the current COVID-19 pandemic and future pandemics in addition.
Key Reasons That Will Increase Revenue
Due to the budget proposal from President Biden, raising the corporate tax from 21% to 28% will increase revenue drastically. As for the top individual tax, raising the percentage up to 39.6% will too increase revenue. Another key revenue raiser is the Billionaire Minimum Tax.
The Billionaire Minimum Tax is also known as implementing a 20% minimum tax on the top 0.1% of earners and households with assets over $100 million. Several tax incentives for oil and gas producers and processors were repealed to increase revenue.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.
