WATCH: ‘New investments’ in Biden budget ‘fully paid for’ with tax on very wealthy, says OMB director

President Joe Biden’s 2023 budget proposal would make public investments while trimming the budget by implementing a new tax on the wealthiest Americans, Office of Management and Budget Director Shalanda Young testified on Wednesday.

Watch the event in the player above.

“The budget’s investments are more than fully paid for through tax reforms that ensure corporations and the wealthiest Americans pay their fair share,” Young testified during a hearing of the Senate Budget Committee.

Young said Biden’s tax proposal would require “the richest Americans” to pay a 20 percent tax on all their income, including investment income that is currently untaxed but would not affect Americans making less than $400,000 a year and reduce the deficit.

“It would reduce deficits to less than half of last year’s levels as a share of the economy, while keeping the economic burden of debt low,” Young said.

Biden announced a budget blueprint Monday that calls for higher taxes on the wealthy, lower federal deficits, more money for police and greater funding for education, public health and housing.

Appearing at the White House with Young on Monday, Biden said the proposal sends a clear message to the public about “what we value.” He outlined a focus on fiscal responsibility, safety and security and investments to “build a better America.”

The document essentially tries to tell voters what a diverse and at times fractured Democratic Party stands for ahead of the midterm elections that could decide whether Congress remains under the party’s control.

Biden is proposing a total of $5.8 trillion in federal spending in fiscal 2023, which begins in October, slightly less than what was projected to be spent this year before the supplemental spending bill was signed into law this month. The deficit would be $1.15 trillion.