Biden's new budget plan hikes taxes on ultra-wealthy

WASHINGTON (Nexstar) -- President Biden's new budget proposal would raise taxes on the ultra-wealthy and on corporations, generating revenue and reducing the federal deficit, according to the White House.

In his newly unveiled budget proposal, Biden includes a plan to impose a 20% tax on the income of those who are worth more than $100 million. The president's new budget proposal would also raise the corporate rate from 21% to 28%.

"Right now billionaires pay an average rate of 8% on their total income," Biden said. "For most Americans, the last few years were very hard, stretching them to the breaking point. But billionaires and large corporations got richer than ever."

The budget of nearly $6 trillion includes $773 billion in defense spending and $30 billion for law enforcement and crime prevention measures. It also aims to increase affordable housing availability and strengthen American supply chains and domestic manufacturing.

"It's a good strong budget that will help build on the historic growth of the past year," said Senate Majority Leader Chuck Schumer of New York.

The White House said the budget will cut the federal deficit by $1 trillion over the next decade in part from the proposed tax hikes.

While Biden's budget represents his wish list, Congress must ultimately approve the budget. Republicans are expressing opposition over tax hikes and because they want more spending for the military.

"The Biden administration's far left values are fundamentally disconnected from what American families actually need," said Senate Minority Leader Mitch McConnell of Kentucky.

Because the president's proposed budget includes provisions to raise revenue, the White House hopes it will restart negotiations on the Build Back Better plan that includes a huge investment in fighting climate change and child care.