Biden to call for at least $2 trillion in deficit reduction when he unveils his budget

CNN  — 

President Joe Biden is set to call for at least $2 trillion in deficit reduction when he lays out his budget Thursday in Philadelphia, advocating for raising taxes on the wealthy and corporations among other deficit-reducing programs.

The deficit reduction will be a central part of Biden’s budget proposal and a symbolic marker as the president approaches the showdown with House Republicans over the looming debt ceiling crisis.

The proposal aims to undermine Republican arguments seeking to tie deficit reduction to raising the debt ceiling. The White House has said the two should proceed on separate tracks and that raising the debt ceiling is non-negotiable.

Biden previewed the move during his State of the Union address last month and in numerous public speeches since.

“The plan I’m going to show you is going to cut the deficit by another $2 trillion. And it won’t cut a single bit of Medicare or Social Security. In fact, we’re going to extend the Medicare Trust Fund at least two decades,” Biden said.

He continued, “I will not raise taxes on anyone making under $400,000. But we’ll pay for it the way we talked about tonight: By making sure that the wealthy and big corporations pay their fair share.”

More details on Biden’s budget are expected in the coming days as the administration begins its rollout.

The budget is unlikely to become law – presidential budgets rarely pass through Congress untouched – but it is an important marker for Biden’s political future that will be shaped by the fight over the debt limit and his expected reelection announcement later this spring.

Biden has offered up several revenue-raising proposals that could help him reach his deficit reduction goals, including a new tax on households worth more than $100 million and quadrupling the tax on stock buybacks.

He has also proposed cost-saving measures, such as expanding Medicare’s ability to negotiate the price of certain prescription drugs.