As Americans struggle to pay skyrocketing prices at the store and feel historic pain at the pump, President Biden’s proposed budget will make every crisis facing American families, job creators, and workers even worse.
This budget will spend $73 trillion over the next decade, which would grow America’s debt to a shocking $45 trillion by 2032. To pay for this reckless spending, taxes on families would increase by $1 trillion, and taxes on job creators would increase $1.5 trillion. This budget would be funded by the highest sustained tax burden in our nation’s history.
BIDEN’S BUDGET BY THE NUMBERS: (Courtesy of House Budget Committee Republicans)
Deficits: $14.4 trillion deficits over 10 years. The deficit exceeds $1 trillion every year. Deficits average 4.7 percent of GDP a year, the highest sustained level in American history.
Debt: $16 trillion of new debt over 10 years. The national debt reaches $45 trillion by 2032 (121% of GDP)
Spending: $73 trillion of spending over 10 years, 66 percent higher than the average of the last 10 years. This is $8 trillion above CBO’s most recent projections. Spending averages 23.4 percent of GDP over the next 10 years, the highest sustained spending burden in American history.
Taxes: $58 trillion of taxes over 10 years. $5 trillion above CBO’s most recent projections (but we haven’t gotten a new CBO baseline this year, OMBs baseline shows it as a $2.5 trillion tax increase, the other $2.5 trillion coming from enhanced economic growth/inflation, so safer to use the $2.5 trillion tax increase number). The budget proposes taxes to amount to 18.8 percent of GDP over the next 10 years, which is the highest sustained tax burden in American history.
Inflation: Does not accurately reflect current trends in inflation. Inflation is increasing by 8 percent so far this year, but the budget makes the ridiculous claim that under the president’s policies it will end up at only 4.7 percent in 2022—a figure that could only be reached if inflation averages about 2 percent for the rest of the year. Unfortunately, that will not happen under these reckless spending proposals.
Weak Growth: Only assumes average growth over the next 10 years of a little above 2 percent. This is 28 percent below the average of the last 75 years. Budget’s high spending leads to below-average economic growth and record inflation.
Gimmicks: Uses a Deficit Neutral Reserve Fund to say they support the policies of BBB, and that they will do it in deficit-neutral way, but leave it to Congress to figure out the details - basically meaning the numbers above don’t include the CBO confirmed $5 trillion in BBB spending, $1.5 trillion in BBB taxes, or $3 trillion in BBB debt….though there is some double-counting happening with the tax increases to say they would be used to pay for BBB, but also accomplish deficit reduction in his larger budget.
BOTTOM LINE: President Biden and House Democrats clearly have no plan to solve the overwhelming economic crisis facing Americans, and this Far-Left, Socialist budget will only worsen it. Americans can’t afford to pay for Democrats’ out-of-control spending any longer.