President Biden called out Trump and the Republicans for blowing up the deficit with tax cuts for the rich.
President Biden said:
I’ve also made it a priority to get America’s fiscal house in order. Under my predecessor, the federal budget deficit went up every single year — every year. As I committed when I was running, and I got here, we’re going to turn that around.
In fact, last year, in 2021, we cut the federal deficit by more than $350 billion. And this year, in 2022, we’re on track to cut the deficit by more than $1.3 trillion — $1.3 trillion. That would be the largest one-year reduction in the deficit in U.S. history. And it’s particularly important now as we work to reduce pressures on inflation. That’s what happens when you reduce the deficit.
So here are the facts: It was the previous administration whose reckless policies and mismanagement led to the record budget deficits. In my administration, that’s getting the deficit under control.
In fact, I just released my budget this week, and it shows, going forward, we can cut the deficit by another $1 trillion over the next decade while still making prudent investments in economic growth, in climate, and other equitable economic decisions.
But to do that, we have to be willing to do something previous administrations and Republicans today refuse to do. We need to make sure corporations and the super wealthy begin to pay their fair share.
Here’s one example: Right now, billionaires — and there’s not a whole lot of them in the country; maybe I won’t give a number because I don’t know for sure. They — they average less than 1 percent. But my point is billionaires pay an average rate of only 8 percent on their total income.
A family led by a firefighter and a teacher can pay double that income tax rate — double what a — what a billionaire pays; double the 8 percent.
So my budget has a Billionaire Minimum Tax — a 20 percent minimum tax that applies only to the top one — one-hundredth of one — one-hundredth of 1 percent of American households.
The Billionaire Minimum Tax is fair. And here’s the deal: It raises $360 billion that can be used to lower costs for families and cut the deficit. It would add — it would — and I would add, nobody making less than four — and you’re tired of hearing me say it, but no one making less than $400,000 a year will pay a single penny more in federal taxes.
Republicans like Mike Pence are already complaining that Biden wants to tax billionaires instead of making their Trump tax cuts permanent. The President was also correct that Trump and congressional Republicans blew up the deficit and added nearly $8 trillion to the national debt.
In May of 2018, the deficit went up by 66% after the Trump tax cuts for the rich and increased spending.
Tax cuts for the wealthy and corporations don’t pay for themselves or create jobs. Democrats will again clean up the Republican economic mess, and someday a Republican president will be elected who will cut taxes for the rich all over again, because ideology, not economics, is the guide for GOP policy.
Mr. Easley is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association