The proposal also aims to cut federal deficits by a total of more than $1 trillion over the next decade, according to a White House document released on Saturday.
As part of that plan, the budget will outline a minimum tax on billionaires, which would require that American households worth more than $100 million pay a rate of at least 20 percent on their income as well as unrealized gains in the value of their liquid assets, such as stocks and bonds, which can accumulate value for years but are taxed only when they are sold. That revenue could also be directed toward the president’s broader agenda.
Cecilia Rouse, the chair of the White House’s Council of Economic Advisers, said last week that Mr. Biden still wanted to invest in improving access to child care, prescription drugs and health care as well as combating climate change, without adding to the federal deficit.
“The president isn’t just looking to make these kinds of investments as stimulus, meaning that they’re deficit financed, he is committed to deficit reduction along the way as well,” Ms. Rouse said at the National Association for Business Economics conference. “And that’s what will be reflected in his budget.”
Economists will also be monitoring the White House’s projections for economic growth and inflation, which is at its highest level in 40 years. The forecasts could also come with political implications.
“Too low an inflation estimate and it won’t be believable, but too high and it will become political ammunition for Republicans,” analysts at Beacon Policy Advisors wrote in a note to clients.
Treasury Secretary Janet L. Yellen acknowledged on Friday that the global economy is facing headwinds and that Russia’s invasion of Ukraine could amplify inflationary pressure around the world on energy and food prices. But she predicted that the U.S. economy remains well situated despite those concerns.
“Growth over the last year has been extraordinary; job creation remains very high,” Ms. Yellen told CNBC. “When you look at the balance sheet of the typical American family, it is in very good shape.”