President Joe Biden’s proposed 2025 budget aims to provide tax breaks for millions of families, low-income workers, and senior citizens by reviving programs that were successful in lifting children out of poverty during the pandemic. The budget includes plans to raise taxes on corporations and the wealthy to pay for these tax breaks, such as reversing some of the cuts implemented by former President Donald Trump. With many households feeling financially insecure due to the rising cost of living, the new tax breaks are intended to provide relief to those struggling to make ends meet.
The proposed budget outlines a plan to trim deficits by $3 trillion over a decade, with new taxes generating $4.9 trillion in revenue. This revenue would fund tax cuts for low- to middle-income families and help reduce the deficit. While presidential budgets are essentially wish lists and may not pass due to political factors, they do reflect the administration’s priorities and goals. Biden’s budget proposal sheds light on his focus on tax changes that prioritize supporting vulnerable populations, and he may continue to advocate for these changes if reelected in November.
One significant policy in the proposed budget is the revival of the expanded Child Tax Credit (CTC), which was temporarily increased during the COVID-19 pandemic. The CTC, established in the 1990s, was expanded to provide up to $3,600 per child, with families receiving monthly checks of up to $300 per child. This expansion was popular among families and played a crucial role in reducing child poverty. When the expanded credit expired in 2022, the child poverty rate increased. Biden’s budget seeks to reinstate the expanded CTC to continue supporting families and reducing child poverty.
In addition to the CTC, the proposed budget includes other tax policies that could impact millions of Americans. Biden’s plan to raise taxes on corporations and the wealthy to fund tax breaks for low- to middle-income families reflects a commitment to addressing economic disparities and supporting those most in need. By outlining these tax policies, the administration is signaling its priorities and vision for a more equitable tax system that benefits all Americans, particularly those facing financial challenges.
While the 2025 budget proposal may face challenges in passing through a Republican-controlled House, it serves as a statement of the administration’s values and goals. Biden’s focus on providing tax relief to struggling families and reducing child poverty through initiatives like the expanded CTC highlights his commitment to addressing economic inequalities and supporting vulnerable populations. As the budget proposal undergoes scrutiny and negotiation, the administration’s tax policies will continue to be a key focus area in the effort to build a more inclusive and equitable economy for all Americans.
