President Joe Biden on Thursday called for ending tax subsidies for cryptocurrency investors, the real estate industry and the oil and gas sector as he formally presented his proposed budget for the 2024 fiscal year.
Biden’s goal is to “cut wasteful spending on Big Pharma, Big Oil and other special interests,” said Shalanda Young, director of the President’s Office of Management and Budget, during a call with reporters.
His proposed budget would provide an estimated $24 billion in savings for crypto investors by eliminating tax subsidies that allow them to sell cryptocurrencies like bitcoin BTCUSD,
According to the White House, you can book losses and take tax losses to reduce your tax burden, but buy back the same property the next day.
Crypto Investors’ Losses Are Being Turned into IRS Gains Because of No-Sell Rules
The budget would provide $19 billion in savings by closing the “equal exchange” loophole for real estate VNQs,
investors, which prevents them from paying tax on profits from deals indefinitely as long as they continue to invest in real estate.
It would save $31 billion by eliminating special tax treatment for oil and gas XOPs.
The White House said that company investment, as well as other fossil fuel tax priorities.
Many of the president’s budget proposals are not expected to gain much traction in the Republican-run House of Representatives, but they could help the Democratic incumbent speak volumes in his 2024 re-election campaign.
In addition, Biden’s proposal – which was discussed in a speech Thursday in the swing state of Pennsylvania – is likely to factor into his discussions with House Republicans on raising the US debt ceiling.
The president would increase spending on things like the Social Security Administration, which would see an increase of $1.4 billion over the 2023 enacted level for spending on staff and IT or other improvements. Schools in low-income communities would receive a $2.2 billion increase, and Advanced Research Projects Agency for Health (ARPA-H) would receive a $1 billion increase.
The proposed budget has an overall outlay of $6.88 trillion, which is higher than the estimated $6.37 trillion for the current fiscal year. There would be $5.04 trillion in revenue, resulting in a deficit of $1.85 trillion.
Biden’s budget targets the pharmaceutical industry PJP,
Aimed to build on the Inflation Reduction Act’s move to allow Medicare to negotiate prices for certain drugs. This calls for the program to negotiate prices for more drugs and bring the drugs into negotiation soon after they are launched.
His budget targets the retirement investments of wealthy Americans, as it proposes to limit the amount anyone earning more than $400,000 a year can put into tax-favored retirement accounts, in a move that could cost an estimated $23 billion. will provide savings.
It calls for eliminating the carry-interest loophole, which allows managers of private-equity funds to pay lower tax rates, even as Biden’s push for that issue flopped last year when the Democrats had a reduced majority in both chambers of Congress.
This includes new efforts by Biden to raise taxes on US companies, as he plans to increase the corporate tax rate from 21% to 28%, the tax rate on foreign income from 10.5% to 21% and a 1% levy on stocks It is proposed to quadruple Buyback.
Biden vs McCarthy
Biden and other Democrats are calling on House Speaker Kevin McCarthy and his fellow Republicans to present their proposed budget, and the president reiterated that point Thursday as he spoke at a Union Hall in Philadelphia.
“I’m ready to meet the speaker any time – tomorrow, if he has the budget. Lie down here. Tell me what you want to do. I’ll show you what I want to do. We’ll see what we get on.” Can agree and disagree on what,” Biden said.
McCarthy has reportedly said it could be two months before they have one. The speaker told reporters on Wednesday that the GOP would analyze Biden’s proposal and act on its own.
McCarthy and his fellow Republicans are demanding spending cuts in exchange for lifting the cap on federal borrowing, while Biden and his fellow Democrats have said it should be extended unconditionally.
CBO warns of possibility of US default between July and September as debt-limit impasse persists
Congressional Republicans blasted Biden’s budget on Thursday, which they said would burden families through taxes or higher costs, and challenged the president to cut spending ahead of high-stakes talks on the debt ceiling.
“We must cut wasteful government spending,” McCarthy, a California Republican, and three other House GOP leaders said in a statement.
“Our debt is one of the greatest threats facing America, and the time to address this crisis is now.”
other tax proposals
Another part of Biden’s budget proposes to increase the Medicare tax rate on earned and investment income from 3.8% to 5% for people earning more than $400,000 a year.
There are also other proposed measures that would raise taxes on the wealthy, such as a billionaire minimum tax.
According to the White House, the budget would reduce the deficit by about $3 trillion over 10 years.
Robert Schroeder of MarketWatch contributed to this report.
Credit: www.marketwatch.com /