President Biden is expected Friday to announce his $6 trillion budget proposal for next year as a single plan, after having already announced them as major budget initiatives.
The proposal would run a $1.8 trillion federal government deficit, despite provisions for new tax increases on corporations and high wage-earners to pay for the major spending plans, according to the Associated Press.
The proposal also will incorporate the initiatives into the government’s existing budget framework including Social Security and Medicare, the wire service also reports.
The Associate Press said it learn about key elements of the proposal through Democratic aides who spoke on the condition of anonymity.
The large deficit projections is the consequence of the federal government accumulating debt that has topped $28 trillion after well more than $5 trillion in COVID-19 relief. The tax increase will be used for such new social programs as universal prekindergarten and subsidies for child care.
The budget also incorporates the administration’s eight-year, $2.3 trillion infrastructure proposal and its $1.8 trillion American Families Plan and adds details on his $1.5 trillion request for annual operating appropriations for the Pentagon and domestic agencies.
Under Biden’s plan, the public debt would exceed the size of the economy and soon eclipse record levels of debt relative to gross domestic product that have stood since World War II, despite over $3 trillion in proposed tax increases over the decade, the wire service also reports.