Biden to raise taxes on wealthy, boost military and federal workers in budget trends now Biden to tax families worth more than $100 MILLION to pay for the biggest federal pay rise since Jimmy Carter and largest peacetime military budget in U.S. history - and he STILL thinks he can reduce deficit by $2 TRILLION Biden will release his budget on Thursday in Philadelphia It won't include cuts to federal spending but will include new taxes on wealthy Proposal is expected to be rejected by Republicans By Emily Goodin, Senior U.S. Political Reporter For Dailymail.com Published: 15:23 GMT, 8 March 2023 | Updated: 15:23 GMT, 8 March 2023 Viewcomments President Joe Biden's budget blueprint will include a 5.2% raise for federal employees, one of the largest peacetime military budgets in recent history and plans to save Social Security and Medicare. It won't include cuts to federal spending, which Republicans have pushed for as a way to bring down the $31.4 trillion federal deficit. Instead, Biden will pay for his proposals with a series of new taxes on the wealthy and on corporations. The combo of more spending and more taxes is likely to make his budget dead on arrival when it reaches Capitol Hill as Republicans, who control the House, prepare to hammer him as a tax-and-spend Democrat. The GOP has yet to release their own budget proposal but it's expected to slash foreign aid and cut assistance to the poor, including food, health care and housing. Each party's plan will serve as the starting gun for negotiations between Speaker Kevin McCarthy and Biden over spending for fiscal 2024, which begins Sept. 1. It will take the cooperation of both parties to pass a budget to keep the federal government running - McCarthy has to keep his Republicans in line in the House and Senate Majority Leader Chuck Schumer will need all his Democrats in the Senate. But the widely differing proposals set up a policy clash that will play out amid the backdrop of election year politics as Biden prepares to seek a second term in office and Republicans try to win back the Senate while keeping the House. Details about the president's budget, which he will formally unveil in Philadelphia on Thursday, have started to trickle out. He will propose a 5.2% raise for federal workers - the largest increase from the White House since Jimmy Carter was president, per the Washington Post. But it falls short of the 8.7% raise that lawmakers - including many Democrats - want. He will push for one of the nation’s largest peacetime defense budgets, per Bloomberg, with $170 billion for weapons procurement and $145 billion for research and development. That will give the Defense Department a topline number of $835 billion, up from the $816 billion in the last fiscal year. Biden has already released his plan to make Medicare solvent through 2050 by increasing taxes on those making more than $400,000 to 5 percent from 3.8 percent and to expand Medicare's ability to negotiate lower costs for prescription drugs. He’s likely to mirror those increases for Social Security taxes in order to boost that program. The president also claims he can cut the federal budget deficits by at least $2 trillion over the next 10 years, the New York Times reported, by initiating a new tax on households worth more than $100 million. The deficit provision will be another clash point as the country approaches its debt limit. President Biden will release his budget on Thursday in Philadelphia Biden has refused to negotiate with Republicans on the issue, demanding a clean raise of the debt ceiling, as has been done for past presidents. But House Republicans have refused to raise the debt limit, which caps how much money the federal government can borrow, until Biden agrees to cuts in federal spending. Republicans will focus on the $31.4 trillion debt in a closed-door meeting on Capitol Hill on Wednesday - the day before Biden reveals his full budget proposal. Congressional Budget Office chief Phillip Swagel will brief the lawmakers on the deficit. He has warned the federal debt will surpass the size of the U.S. economy within the next decade if no steps are taken. The GOP say they want at least $150 billion in reductions for fiscal year 2024, with the ultimate goal of eliminating budget deficits over 10 years. Adding to the tension, the federal government is expected to hit its debt ceiling by summer. Failure to act by that time could trigger a potentially disastrous default. Each side blames the other for high federal deficit. Republicans claim the post-pandemic spending under Biden added to the national debt, while Democrats say it was tax cuts for businesses and wealthy individuals that were passed under former President Donald Trump that caused it. House Republicans, led by Speaker Kevin McCarthy (above), have yet to release their budget proposal but it's expected to contain cuts to foreign aid and assistance to the poor Meanwhile, Republicans are expected to release their budget by April 15. It's likely to contain cuts to foreign aid and make deep cuts to health care, food assistance and housing programs for poor amid their push to slash federal spending. GOP leaders have said they won’t seek cuts to Medicare or Social Security. In order to pass his budget and counter Biden, McCarthy faces the challenge of holding together his two wings of the GOP - the lawmakers in competitive House districts and the conservative hard-liners - together to have the 218 votes he needs. Biden is expected to object to the cuts for the poor. Many of his post-COVID programs offered the kind of assistance Republicans now want to cut. Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility