President Joe Biden’s proposed 2025 budget outlines a range of tax breaks geared to both individuals and families.
President Joe Biden’s includes some perks for millions of families and low-income workers as well as senior citizens, including reviving a program that lifted millions of children out of poverty during the pandemic.
The budget, released Tuesday, aims to pay for those tax breaks by raising taxes on corporations and the rich. One proposal, for instance, would completely reverse one of the cuts implemented by former President Donald Trump, whose 2017 Tax Cuts and Jobs Act on businesses and the nation’s highest earners.
The proposals to provide new tax breaks for low- and middle-income Americans come as many people continue to struggle with the higher cost of living. About 1 in 3 households say they don’t feel financially secure, according to a new study from Northwestern Mutual, which said that represents the highest share since it began its annual study in 2009.
Under Biden’s proposal, deficits would be trimmed by $3 trillion over a decade, with his new taxes raising $4.9 trillion. That new revenue would help pay for the tax cuts for low- to middle-income families and to reduce the deficit, the White House says.
To be sure, presidential budgets are only a wish list, and are crafted to underline the White House’s political goals and messaging. Meanwhile, the 2025 budget is highly unlikely to pass given Republican control of the House. Still, such budget proposals are meaningful in that that they outline Biden’s priorities, and the president would likely continue to press for these tax changes if he wins reelection in November.
Here are the tax policies in the White House’s proposed 2025 budget that could impact millions of Americans.What is Biden proposing for the Child Tax Credit?
Biden’s budget would revive the expanded Child Tax Credit (CTC), which got a one-year overhaul during the COVID-19 outbreak.
The CTC isn’t a new tax credit — it’s been around since the 1990s. But as the nation struggled to emerge from the pandemic in 2021, lawmakers expanded the $2,000 credit to as much as $3,600.
