The 2023 budget proposed by Biden includes increasing taxes on the wealthy and corporations, increasing defense and police spending.

• The 2023 federal budget of President Joe Biden, released on Monday, includes tax increases on the wealthy and corporations and requests significant funding for the Defense and Justice Departments.
• The new "Billionaire's Minimum Tax" proposal includes a 20% income tax rate for the wealthiest 0.01% earners and households with a net worth over $100 million.
• In the aftermath of Russia's invasion of Ukraine, the budget's priorities have shifted from managing the Covid-19 pandemic to reducing the crime rate at home and strengthening NATO alliances abroad.

The 2023 federal budget proposed by President Joe Biden includes tax increases on the wealthy and corporations, as well as significant new spending for the Defense and Justice Departments.

The proposal to Congress aims to reduce the federal budget deficit by over $1 trillion in the next decade, with part of the funding coming from raising the corporate tax rate from 21% to 28%, a move supported by progressive Democrats but opposed by key moderates. Additionally, Biden proposes a new 20% minimum tax on the top 0.01% of earners and households worth more than $100 million.

White House officials on Monday attributed the economic growth to Biden's economic policies, justifying the reduction of pandemic assistance programs.

The Biden administration announced Monday that the 2022 budget deficit is projected to be $1.3 trillion less than the 2021 deficit, marking the largest ever one-year decline in the country's history.

The 2023 fiscal year budget prioritizes non-pandemic related initiatives, as the pandemic has largely subsided following the omicron wave. No emergency pandemic or supplemental funds are being requested.

The budget prioritizes addressing crime and public safety, as well as the global threat posed by Russia's invasion of Ukraine.

Key spending items:

• The new defense spending of approximately $31 billion will increase the total national defense spending to $813 billion.
• The White House has announced that $6.9 billion of the defense spending will be allocated to NATO, European defense, Ukraine, and countering Russian aggression.
• Over $32 billion has been allocated for crime prevention efforts, with $20.6 billion going to the Justice Department and $3.2 billion for state and local law enforcement grants and officer hiring.
• The global health security budget is approximately $10.6 billion, encompassing both the current pandemic and future outbreaks.

Key revenue raisers:

• Increase the corporate tax rate from 21% to 28%.
• Raise the top individual tax bracket to 39.6%.
• The Billionaire Minimum Tax imposes a 20% tax on the top 0.01% of earners and households worth more than $100 million.
• Repeal several tax breaks for oil and gas producers and processors.
• Tax carried interest as regular income, closing the so-called carried interest loophole.
• End tax deferrals on the gains from like-kind exchanges.

The budget is a blueprint for Democrats in Congress, who hold slim majorities in the House and Senate but face strong opposition in the upcoming midterm elections.

In deep-blue districts, progressives are likely to prioritize Biden's proposed tax increases and the budget's increased funding for climate change.

With their constituencies, moderate Democrats are likely to support the additional funding in Biden's budget requests for the Pentagon and police.

Amid new polls showing Biden's lowest approval ratings ever, the budget proposal was released.

On Sunday, a new NBC News poll revealed that just 40% of Americans approve of Biden's performance as president, while 55% disapprove.

A larger percentage of Americans hold Biden and his policies responsible for the high inflation rate, 38%, compared to those who blame the pandemic, 28%, or corporate price increases, 23%.

— CNBC’s Ylan Mui contributed to this story.