On Monday, President Joe Biden released the federal budget for 2023. The highlights include increased spending on defense and police as well as increased taxation on the ultra-rich and corporations. The proposal that has been submitted to Congress shows that the federal budget deficit could be reduced by more than a trillion dollars that would be partly paid for, when corporate taxes would be raised.

The budget envisages an increase in the rate of corporate tax from its current rate of taxation. Progressive Democrats are in favor of the hike while moderate ones balk at the proposal of raising taxes. There are also proposals to tax the ultra-rich who often pay lower taxes due to various factors. Biden wants the top 0.01 percent earners in the nation to pay higher taxes.

The budget is also moving away from pandemic spending to defense and security and safety spending. It proposes an increase in spending for the police and for defense. According to the budget, there would an additional spending of $31 billion on defense, taking the total expenditure to roughly $813 billion. There is also an allocation of roughly $20.6 billion to the Justice Department. About $3.2 billion would be allocated to states and local law enforcement for grants and for hiring police officers.

The budget has also set aside about $10.6 billion for global health security. These funds would be used in future for COVID or any other pandemic that may come in future.

The budget proposes to raise revenue by raising the rate of corporate tax to 28 percent from its current rate of 21 percent. There would be a minimum 20 percent tax on those who belong to the 0.01 percent bracket as well on households who are worth more than 100 million, which is also referred to as the Billionaire Minimum Tax. Tax breaks for oil and gas producers and processors would also be removed and there are also other proposals to expand tax collections.