Washington: President Joe Biden will make his opening proposal on Thursday in a controversial discussion about federal finances, when he suggests a federal budget that would reduce the deficit by nearly $3 trillion over the next ten years, leaving the government at risk of default.

It is part of a larger effort by the president to criticize House Republicans, who are demanding significant cuts in government spending in exchange for raising the borrowing limit.

However, the only response from the GOP so far has been a flat "no" to a budget proposal that could serve as the guiding principle of Biden's as-yet-unannounced bid for reelection in 2024.

Also Read: GDP growth may mark at about 4% in Q4: Report

White House press secretary Karine Jean-Pierre told reporters on Wednesday, "We view this as a values statement. It's something that shows the American people what to do when we consider fiscal responsibility and how to move forward." If we want to grow, how seriously do we take it?"

Biden's proposed tax and spending priorities in their current form are unlikely to be approved by either the House or the Senate. The plan "will never see the light of day," according to Senate Minority Leader Mitch McConnell, R-Kentucky, indicating it could only be used as a talking point ahead of the election in 2024.

Biden counts on a popular base that will make it difficult for Republicans to criticize him when he announces his spending plan in the competitive state of Pennsylvania.

Also Read: BMW unveils new variant X3 in India

To reduce federal borrowing, Biden wants to raise taxes on the wealthy, including reversing a tax cut implemented by then-President Donald Trump in 2017 for those making more than $400,000. The increased revenue will help fund Medicare, the government health insurance program for adults over age 65.

Biden has proposed a new tax on income over $100 million that would target billionaires until the plan is released. He has demanded to reduce the prices of cheap medicines.

Companies would be subject to a four-fold increase in the tax on stock buybacks, and individuals earning more than $400,000 would be subject to an additional Medicare tax that would contribute to the continued viability of the program after 2050.

Also Read: SBI report on Raghuram Rajan's remarks on Hindu rate of growth

According to an administration official, Biden's budget will aim to close the "carried interest" loophole, which allows wealthy hedge fund managers and other individuals to pay their taxes at a lower rate and allows billionaires to sell their holdings.

Prevents you from being able to separate a large part. in tax-favored retirement accounts. The plan also anticipates eliminating $24 billion in costs over ten years.

The official providing the budget information, speaking on the condition of anonymity, discussed the proposal before it was made public.