Biden proposes a 2.6% increase in the tax on the highest income earners

The Biden Administration plans to raise taxes on the highest income earners in order to cover expenses such as Medicare and Social Security. The White House released the budget for fiscal year 2024, detailing that the increase - which would be 2.6% - would affect singles earning more than $400,000 and married couples earning more than $450,000.

For Americans with wealth in excess of $100 million, the Biden Administration announced that it will propose a minimum tax of 25%. According to White House Office of Management and Budget Director Shalanda Young, these hikes serve to "reward work and not wealth" and "would ensure that no billionaire pays a lower tax rate than a teacher or firefighter."

In order for the Biden Administration's proposals to move forward, they will have to be approved by the House of Representatives. A tough obstacle for the President, since the Republican Party has the majority in the House.

Budget increase in all departments

Biden proposes an increase in the budget allowances of all federal executive departments. The department to receive the most benefits would be the Department of the Treasury, to which it would allocate $16.3 billion (15% more than in the previous fiscal year); the Department of Agriculture, to which it would allocate $30.1 billion (+14%); and the Department of Education and the Department of Energy, with budgets of $90 billion and $52 billion (+13.6%, the same increase in both).

On the other hand, the Department of Veterans Affairs would have the lowest increase compared to 2023 (with a budget of $137.9 billion, up $3 billion over last fiscal year's allotment); the Department of Homeland Security, which would be allocated $60.4 billion (+1%); the Department of Housing and Urban Development, with a budget of $73.3 billion (+1.6%); and the Department of Defense, which would be allocated $842 billion (+3.2%).