In his proposed 2025 budget, President Joe Biden aims to provide tax breaks for millions of low- and middle-income families, senior citizens, and individuals without children. The budget, released on Tuesday, seeks to fund these tax breaks by increasing taxes on corporations and high-income Americans. The plan also includes the revival of a program that successfully lifted millions of children out of poverty during the pandemic.

One key proposal in President Biden's budget is the revival of the expanded Child Tax Credit (CTC). This tax credit, which has been in existence since the 1990s, was temporarily expanded during the COVID-19 outbreak in 2021. The expansion increased the credit from $2,000 to as much as $3,600, with families receiving half of the CTC in monthly checks over a period of six months. This proved to be immensely popular and helped lift many children out of poverty. However, once the program expired in 2022, the child poverty rate increased.

Under President Biden's budget, the expanded CTC would be restored. It would provide $3,000 per child for children aged six and above, and $3,600 for children under the age of six, surpassing the current limit of $2,000. Additionally, parents who qualify for the CTC would again receive monthly checks from the IRS, enabling them to receive relief when they need it most.

Another tax credit targeted for expansion is the Earned Income Tax Credit (EITC), which primarily benefits low- and middle-income families with children. President Biden's proposal seeks to expand the EITC to include more low-wage workers without children and senior citizens. On average, the expansion is estimated to reduce taxes by $800 for 19 million individuals and couples who are working, including 2 million workers over the age of 65 and 5 million adults aged 18 to 25.

President Biden's budget also includes plans to raise taxes on high-income Americans and corporations in order to fund these tax breaks and decrease the deficit. The administration emphasizes that individuals earning less than $400,000 annually would not face higher taxes, reiterating President Biden's previous statements.

It is important to note that while presidential budgets serve as wish lists and may not pass due to political circumstances, they outline the president's priorities. President Biden is expected to continue advocating for these tax changes if reelected in November.

In conclusion, President Biden's proposed 2025 budget aims to provide tax breaks and revive a successful program that addresses the financial challenges faced by millions of families and low-income workers, as well as senior citizens. The budget outlines his priorities for addressing financial insecurity and reducing the deficit, but its passage remains uncertain due to Republican control of the House.