Mr. Biden has pledged not to raise taxes on people earning less than $400,000 a year. The budget, though, assumes that tax cuts passed by Republicans in 2017 would expire as scheduled at the end of 2025, which would raise taxes on most Americans. On Friday, Biden administration officials said the president would work with Congress before 2025 to ensure people earning less than $400,000 would not face a tax increase.
The budget is both a collection of Mr. Biden’s ambitious economic proposals from his first months in the White House and, on multiple fronts, a repudiation of his predecessor, Donald J. Trump. Where Mr. Trump’s budgets pushed tax cuts, future spending reductions and unfulfilled promises of sustained, accelerated economic growth, Mr. Biden’s promises the dawn of an era of federal taxation and spending previously unseen in the United States outside of times of war or pandemic.
Where Mr. Trump sought to slash more than $1 trillion in federal spending on Medicaid and Obamacare, and rein in spending on Medicare, Mr. Biden’s budget proposes an additional half-trillion in spending for home health workers and federal subsidies for low- and middle-income Americans to buy health insurance.
And while Mr. Trump sought to pull back from government action on climate change, Mr. Biden proposes about $1 trillion on climate-related initiatives, including infrastructure improvements meant to power the nation’s transition to an economy powered less by fossil fuels and more by lower-emission energy sources.
Mr. Biden also seeks to expand the government safety net in an effort to help Americans — particularly women of all races and men of color — work and earn more, rather than relying on corporate America to funnel higher wages to workers.
The budget reflected investments in the middle class “and the pathways to the middle class,” the acting director of the White House budget office, Shalanda Young, told reporters.
Congress will decide how much, if any, of Mr. Biden’s proposals to write into law. The president has a narrow window of opportunity to push them through. Democrats control the House and the Senate by slim margins. Republicans have balked at Mr. Biden’s plans to raise taxes on high earners and corporations and at much of his spending agenda, though some Senate Republicans are negotiating with the president over a potential deal to invest in physical infrastructure, like roads and bridges.