The President is set to release his budget for the 2025 fiscal year this morning, approximately a month overdue. This budget is anticipated to serve as an election year wish list, likely stirring controversy, particularly within the Republican Party. It is expected to encompass a significant array of Democratic programs that the President aims to implement.
Following negotiations with then-Speaker Kevin McCarthy at the end of last year, the budget will feature predetermined budget cuts. Additionally, there will be notable tax increases outlined in the budget, as previously highlighted by the President during the State of the Union address.
Specifically, the President intends to raise the corporate tax rate to 28 percent and elevate the minimum corporate tax rate from 15 percent to 21 percent. Furthermore, a 25 percent billionaire's tax is proposed to generate revenue for increased spending on domestic programs and to address the federal deficit over a decade.
The President's budget will also include a provision for $9,600 in tax credits for homebuyers. However, it is acknowledged that not all aspects of the budget will likely be approved, given the delayed submission to Congress, marking the third consecutive late budget delivery under this administration.
The delay in providing these figures has hindered the commencement of work by federal committees, setting the process back by at least a month. Republicans have expressed intentions to explore avenues for budget cuts within the proposed plan.
While acknowledging the accuracy of the report, concerns have been raised regarding the impact of the President's previous spending initiatives, such as the American 'rescue plan,' which some critics argue has contributed to the current inflationary pressures faced by American consumers.
Despite past delays and challenges, there is optimism that the federal budget will eventually be finalized and approved, aiming to address key economic and fiscal priorities moving forward.
