The Biden administration’s budget includes tax cuts for millions of people

Biden’s 2025 Budget Aims to Provide Tax Breaks for Low- and Middle-Income Americans

President Joe Biden’s proposed 2025 budget includes measures to provide tax breaks for millions of families and low-income workers, as well as senior citizens. These tax breaks would be funded by raising taxes on corporations and the wealthy, including reversing some of the cuts implemented by former President Donald Trump’s 2017 Tax Cuts and Jobs Act.

The budget, released on Tuesday, aims to address the financial struggles faced by many Americans, with about 1 in 3 households reporting feeling financially insecure, according to a new study from Northwestern Mutual. The budget also aims to reduce the deficit by $3 trillion over a decade, with new taxes generating $4.9 trillion in revenue.

While presidential budgets are not guaranteed to pass, they serve as a reflection of the White House’s priorities and goals. Here are the key tax policies proposed in Biden’s 2025 budget that could impact millions of Americans.

Reviving the Expanded Child Tax Credit

One of the major proposals in Biden’s budget is to revive the expanded Child Tax Credit (CTC), which was implemented during the pandemic to provide financial relief to families. The CTC, which has been in place since the 1990s, was temporarily expanded in 2021 to provide up to $3,600 per child, with half of the credit being distributed in monthly checks.

This expanded credit proved to be immensely popular and helped lift millions of children out of poverty. However, it expired in 2022, leading to a sharp increase in the child poverty rate. Under Biden’s budget, the expanded CTC would be restored, providing $3,000 per child for kids six years and older and $3,600 for each child under six.

Raising Taxes on Corporations and the Wealthy

To fund these tax breaks, Biden’s budget proposes raising taxes on corporations and the wealthy. This includes reversing some of the tax cuts implemented by Trump’s 2017 Tax Cuts and Jobs Act, which primarily benefited businesses and high earners.

The budget also includes measures to close tax loopholes and increase enforcement on tax evasion by the wealthy. These changes are estimated to generate $4.9 trillion in revenue over the next decade.

While the 2025 budget is unlikely to pass given Republican control of the House, it serves as a reflection of Biden’s priorities and goals. If reelected, he is likely to continue pushing for these tax changes.  

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