President Biden has demonstrated his support for everyday Americans with more pro-worker policies than any of his living Democratic predecessors – and now, he’s introduced a 2023 budget plan that would do even more to reduce income inequality and invest in middle-out economic growth. 

I just wrote an article for Business Insider about President Biden’s budget proposal where I break down the complex document to share my thoughts on some of Biden’s proposals. Here’s what you need to know:

1. Restricting corporate stock buybacks

A stock buyback is one of the many ways corporations manipulate the market to make more money. In this case, corporations buy back a large amount of their own stock from shareholders in order to intentionally elevate stock prices and earnings per share. Instead of companies putting profits back into their worker wages and business improvements, stock buybacks transfer profits away from workers and benefit only a small class of wealthy shareholders. 

Under President Biden's proposed budget plan, corporate executives would be required to hold onto their stock for three years after a buyback, which would have a cooling effect on stock buybacks by ensuring that CEOs wouldn't be able to extract short-term profits at the expense of their company’s long-term health and their workers.

2. Breaking up monopolies

The monopolization of American firms from smaller businesses into monolithic corporations has helped create what President Biden has called "capitalism without competition" – which means a labor market without competition that would incentivize companies to attract and retain employees by offering higher wages, better benefits, more flexible workloads, and other worker protections and benefits. Part of the problem is that the agencies tasked with enforcing antitrust laws are notoriously underfunded by politicians. President Biden’s budget includes an extra $227 million in funding to the antitrust divisions of the DOJ and the FTC to break up monopolies.

3. Raising taxes on the top 0.01%

President Biden's budget proposes a 20% tax on both the income and capital gains profits of the top 0.01% – including on profits earned through unrealized appreciation, which is how many of the uber-rich build their wealth. Right now, the 400 wealthiest families pay a lower tax rate than the average American – but with this policy in place, billionaires will finally have to pay what they should owe. As a result, the federal government could fund programs like the Child Tax Credit, which could cut child poverty by nearly 50% and inject millions of dollars in consumer spending into our economy. Not to mention it’s wildly popular.

Here’s the bottom line: It’s near impossible that Democrats have enough votes to pass Biden’s proposed budget in the Senate, but these proposals are directional documents that signal the future of policy and lawmaking. By overtly calling out the ways that America's wealthiest people amass and protect their fortunes, and by centering the American middle class in economic policy, Biden is potentially shifting the economic focus of Democratic politicians for years to come – and that’s something to get excited about.

If you found this email informative, will you share my Business Insider article with your social network? You can click on the buttons below to quickly spread the word about President Biden’s efforts to support American workers.

Thanks for reading, 

Paul