Biden’s budget is entirely political and has nothing to do with the impending US budget disaster
President Joe Biden unveiled his new budget plan at a union in Philadelphia against a wall of posters reading “USA 46” and “Invest in America,” as well as White House art. It was clearly an unofficial launch of his re-election campaign, not a remote effort to combat the country’s looming fiscal disaster.
Of course, his staff brags that the plan will reduce the deficit by $3 trillion over the next decade. But the fact is increase red ink would increase spending on many new social programs over the next two years, rising to $6.8 trillion in the first year.
Plus: Democrats will surely need “urgent” spending after this.
Of course, deficit reduction comes largely from tax increases — about $5.5 trillion over the next decade.
It adds to what Biden didn’t get Democratic Congress must pass. White House budget director Shalanda Young said now that Republicans are in control of the House, this is just the “start of a healthy dialogue.”
Uncle Sam needs to start filling the budget gap now. Don’t believe us? The New York Times reports: “The federal deficit is expected to grow so large over the next decade that it will require about $16 trillion in spending cuts or new revenue to balance the budget by 2033.” However, many Democrats oppose deficit reduction as a priority.
More from Ms. Gray: “National Debt Hits $31.4 Trillion.” And: “Biden signs law to add less than $5 trillion to debt over next decade.”
Further: on the country’s current trajectory, “the total amount of debt held by the public will equal the gross annual product of the US economy in 2024, rising to 118% of the economy by 2033.”
Yet Biden is still pushing a new spending package that will be “paid for” by taxing the “rich.”
Never mind, for example, that his call to raise the corporate tax rate from 21% to 28% guarantees slower economic growth and therefore fewer jobs and lower wages (as well as a lower labor force). savings, massively invested in shares).
The economy is already threatened with recession; this alone can push him over the edge.
And thanks to Biden’s policies, real wages have fallen from the day of taking office – but the recipe here is the same.
As we fear, the prez budget is another attempt at the old: Look at all the gifts I want to get you, but that means Republicans say no. He sacrifices any form of financial responsibility to pursue politics.
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