Biden’s Billionaire Tax and Budget Proposals Enjoy Widespread Voter Support
By Grace Adcox and Suhan Kacholia
President Biden recently released his budget proposal for the upcoming fiscal year. His recommendations for spending and taxation align with the keystone issues of his presidency — namely, continuing his focus on climate policy and ensuring that the economy works “from the bottom up, and from the middle out” through holding the wealthiest accountable while generating cost savings for American families.
Recent Data for Progress polling finds support across party lines for major components of Biden’s budget proposal. To reduce the federal deficit, voters support policies to raise taxes and strengthen enforcement on the wealthiest Americans, in contrast to Republican attempts to cut vital programs like Medicaid. In addition, voters support the president’s proposals to tackle climate change and reduce energy costs for all Americans.
Notably, Biden included a “billionaire tax” as part of his latest budget proposal. The tax would require the wealthiest Americans to pay at least 25 percent in taxes on all wealth over $100 million, helping cut the deficit and fund federal programs. Voters support the tax by a +43-point margin, including an overwhelming majority of Democrats (+78-point margin). Majorities of Independents (+45-point margin) and Republicans (+9-point margin) also support the “billionaire tax,” demonstrating the proposal’s bipartisan appeal.
In their first week in the majority, House Republicans voted to cut funding for the Internal Revenue Service (IRS) that had been expanded under the Inflation Reduction Act. The IRS is already underfunded, limiting the agency’s ability to serve ordinary taxpayers and ensure the wealthiest Americans cannot evade paying their fair share.
Biden’s proposed budget would increase funding for the IRS by $29 billion. The additional funding would strengthen the agency's enforcement of taxes on the wealthiest Americans and corporations. Treasury Secretary Janet Yellen has previously stated any additional funding for the IRS should not go toward increasing audit rates on those earning less than $400,000 a year.
A majority of respondents (53 percent) support increasing funding for the IRS. This includes 75 percent of Democrats and a plurality of Independents (49 percent).
To reduce the federal deficit, Republicans in Congress have threatened to cut Medicaid expansions included in the Affordable Care Act. This would take away insurance for many of the more than 90 million Americans covered by Medicaid, including low-income and disabled individuals.
Most voters (59 percent) prefer reducing the deficit through the “billionaire tax” rather than cutting Medicaid expansions, which only 26 percent favor. An overwhelming majority of Democrats (80 percent) favor the former approach, as do 61 percent of Independents.
Biden’s budget proposal also outlines his continued commitment to climate policy, requesting $52.2 billion to confront the climate crisis, along with strengthening American energy security and addressing environmental justice issues. When asked about distinct climate provisions in the proposed budget, respondents support keeping these provisions intact.
Specifically, voters support keeping investments in domestic clean energy technology manufacturing in the budget by a +35-point margin, and say investments in clean energy and weatherization to cut energy costs should be kept in the budget by a +32-point margin.
Voters also support climate provisions that target climate-vulnerable populations, including keeping funding in the budget to cut plastic and air pollution in at-risk communities by a +28-point margin, and investing in clean energy infrastructure for rural communities by a +26-point margin. Additionally, voters would like to see investments in climate-friendly transportation and in the bipartisan CHIPS and Science Act to advance clean energy research remain in the budget, by +14-point and +18-point margins, respectively.
Although Biden’s proposed budget faces numerous challenges as Congress begins its annual appropriations process, voters support key provisions, such as holding corporations and the wealthiest accountable, lowering costs for the average family, and strengthening America’s energy security. During ongoing negotiations to set spending levels for next year, Congress must take voters’ widespread support for these policies into consideration.
Grace Adcox (@GraceAdcox) is a polling analyst at Data for Progress.
Suhan Kacholia (@SuhanKacholia1) is a polling intern at Data for Progress.
Survey Methodology