Almost $3 Trillion Will Be Cut From The Deficit Over The Next Ten Years Under Biden's Budget

As he prepares to unveil his budget on Thursday in Pennsylvania, the president will also reportedly call for new funding to support rail safety measures

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White House press secretary Karine Jean-Pierre said President Biden plans to cut the U.S. deficit by nearly $3 trillion over a decade in his budget proposal for 2024.

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It is worth noting that this reduction comes on top of Biden's promise to reduce the deficit by $2 trillion in last month's State of the Union speech.

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At an upcoming event on Thursday in the swing state of Pennsylvania, the president is expected to release his budget proposals in more detail, however, the White House has already released some of them during the week. 

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According to Jean-Pierre, when reporters asked why Biden is now giving more priority to deficit reduction, he explained that it is an indication that the American people know we take it seriously and that the focus is on “how we can move forward not only for the American people today, but also for future generations who will follow in the footsteps of the past.”

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There is a proposal in Vice President Biden's budget that will put a 5% tax on earned and investment income as a way of strengthening Medicare by raising the Medicare tax rate for people making more than $400,000 a year from 3.8% to 5%.

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According to Trade Algo, a report from the agency indicates it will also propose millions of dollars in new funding for railroad safety measures, particularly in light of recent derailments, following recent derailments from trains. The federal employee pay increases in the Republican budget are expected to be the highest in 43 years, as they are expected to increase by 5.2%.

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A number of the president's budget proposals are unlikely to find much traction in the Republican-led House of Representatives, but they could help the Democratic incumbent win back the popular vote in the 2024 reelection campaign if they accomplish a few of their goals. During the next few weeks, it appears Biden will be announcing his intent to run again for the presidency in the coming weeks.

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In addition to the proposals the president is likely to work with House Republicans on raising the debt limit, the president's proposals will also likely factor into those discussions.