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Treasury Dept: Biden's FY25 Budget Would Reduce Deficit By USD$3 Trillion

US

The US Treasury Department has issued a statement claiming the tax reforms in President Joe Biden's FY25 budget proposal would reduce the federal deficit by USD$3 trillion over 10 years. The statement outlines a populist economic agenda which has little chance of becoming law but will provide a campaign platform for President Biden's reelection campaign.

  • Treasury Secretary Janet Yellen said: “The investments in the President’s budget are fully paid for, and the budget would reduce deficits by approximately $3 trillion through a combination of smart savings and tax proposals that ensure wealthy individuals and large corporations pay their fair share.”
  • Key Items: "Implementing a global minimum tax […] ensuring that all multinationals pay at least a 21% minimum rate on their earnings in each jurisdiction..."
  • "Increasing the corporate minimum tax rate to 21%," and "Implementing a Billionaire Minimum Tax of 25%"
  • "Raising the tax rate on corporate stock buybacks from 1% to 4% to reduce the differential tax treatment between buybacks and dividends..."
  • "Denying corporate tax deductions for employee compensation in excess of $1 million paid to any employee by both publicly and privately owned C corporations."
  • "Making permanent expanded tax credits for health insurance that were first enacted in the American Rescue Plan and extended in the Inflation Reduction Act."
  • "Expanding the Child Tax Credit and making it fully refundable and available in advance monthly…"
  • "Expanding and enhancing the Low-Income Housing Tax Credit... to boost the supply of housing that is affordable for low-income renters."

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