(Molly Bruns, Headline USA) President Joe Biden presented a tax plan specifically targeting wealthy individuals and corporations, fueling nearly $5.5 trillion in new taxes that he claimed will reduce the U.S. budget deficit by nearly $3 trillion over the next 10 years.
In the same conference, Biden announced a 5.2% pay raise for federal employees in 2024, in one of the largest boosts since the Carter administration.
According to Government Executive, the massive wage hike still falls short of Democrat and union expectations.
In previous comments regarding the matter, Biden claimed that the deficit would only fall by “making the wealthy and big corporations… pay their fair share.”
He also pledged to not raise taxes on anyone making less than $400,000 annually.
Biden has set the stage for a battle on Capitol Hill, as many Republicans promised fierce opposition.
“You know the president’s budget is replete with what they would do if they could — thank goodness the House is Republican — massive tax increases, more spending,” Senate Republican Leader Mitch McConnell, R-Ky., said.
McConnell also stated that the “American people can thank the Republican House” that the proposed tax increases “will not see the light of day.”
Democrats will likely fight back, as many of them are in favor of a 4.7% across-the-board raise along with an 4% increase in locality pay, totaling at an average 8.7% raise.
The National Active and Retired Federal Employees Association argued that the more substantial increase is necessary to keep government employees from shifting into the private sector for increased pay.
“Keeping up with private sector pay growth is essential to maintaining the federal government’s ability to recruit and retain a highly qualified and effective workforce,” NARFE National President William Schackelford said. “While pay rates for public servants will still trail private-sector rates, a proposed average raise of 5.2% would ensure they will not fall further behind.”
The budget plan has little hope of passing with the Republican-controlled house and Speaker Kevin McCarthy beginning to make deliberations on the debt ceiling.
