Vantage | What America's $7.3 tn budget says about Biden's politics

As budget season sweeps across nations worldwide, President Joe Biden recently unveiled his ambitious $7.3 trillion spending wishlist. However, in the middle of this unveiling lies a subtle yet significant twist: it’s an election year in the United States.

Traditionally, a budget serves as a policy blueprint. Still, with the looming spectre of elections, Biden’s budget becomes more than just a roadmap for governance. It transforms into a strategic campaign pitch, offering a glimpse into what a potential second term under Biden’s leadership could entail.

“But guess what? Well, I’m a capitalist man. Make all the money you want. Just begin to pay your fair share of taxes. The last administration enacted a $2 trillion tax cut, $2 trillion tax cut that benefits the very wealthy, the top 1 per cent, the biggest corporations. And exploded the federal deficit. Last administration added more to the national debt than any presidential term in American history,” said President Biden.

Top three highlights

Tax reforms: Among Biden’s key proposals is a call for increased taxation on the wealthy. He aims to raise the corporate tax rate from 21 per cent to 28 per cent and target the top 0.1 per cent of Americans, those with assets exceeding $100 million, with a 25 per cent tax rate. This move aligns with long-standing liberal demands to alleviate income inequality by taxing the ultra-rich more fairly.

Social security expansion: Biden’s budget reflects liberal priorities by advocating for expanded social welfare programmes. This includes subsidies for childcare and higher education, a $258 billion investment in affordable housing and the introduction of paid family leave, covering various personal circumstances such as caregiving or illness recovery.

Defence spending: In a departure from conventional budgetary trends, Biden proposes a marginal 1 per cent increase in military spending. This move signals a deliberate shift away from aggressive defence expenditure with plans to reduce purchases of F-35 jets and submarines.

Political manoeuvering

However, the passage of Biden’s budget faces significant hurdles. With Republicans controlling the US House of Representatives, opposition to many of Biden’s proposals poses a formidable challenge. Last year, similar budgetary endeavours faltered, leaving the government reliant on interim funding measures.

Moreover, critics argue that Biden’s budget, while addressing liberal concerns, exhibits shortsightedness. The emphasis on electioneering over immediate geopolitical concerns, such as ongoing conflicts and tensions with China, raises questions about the administration’s priorities.

Foreign policy quandaries

Biden’s foreign policy, particularly regarding Israel, encapsulates this dilemma. Reports suggest a subtle shift in the administration’s stance with Biden issuing warnings to Israeli Prime Minister Benjamin Netanyahu regarding military actions in Gaza. This move reflects growing pressure from Muslim-American constituents, who demand a more balanced approach to the Israeli-Palestinian conflict.

Yet, Biden’s attempt to navigate these competing interests has resulted in a muddled policy. While blocking UN Security Council resolutions against Israel, he simultaneously pushes for a ceasefire. This indecision underscores the delicate balancing act the administration faces striving to appease divergent constituencies without making substantial progress on key issues.

Challenges ahead

As Biden seeks re-election, he confronts a challenging political landscape. Polls indicate a narrow lead for his predecessor, Donald Trump, reflecting the intensity of the upcoming electoral contest. To bolster his prospects, Biden employs various tactics, from delivering campaign-style State of the Union addresses to crafting budget proposals laden with electoral promises.

In essence, Biden’s budgetary agenda intertwines policy imperatives with electoral calculus, reflecting the intricate dance of governance in a hyper-partisan era. As the political landscape continues to evolve, the true test lies in whether such manoeuvres can translate into tangible outcomes for the American people.

Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.