CBO Undercuts One of Biden’s Biggest Economic Talking Points

Biden Just Got His Biggest Talking Point Nuked by Feds

(UnitedVoice.com) – One of the major issues Republicans have with President Joe Biden and Democrats is the amount of money they have spent. Just weeks after taking office, the POTUS signed the American Rescue Plan, a $ 1.9 trillion relief package. The aid came only a couple of months after former President Donald Trump signed another relief package that included direct payments to the American people. There was a question as to why Biden signed the bill when the money from the previous legislation had not run out.

Despite the astronomical amount of spending by the federal government since 2020, Biden has begun taking credit for deficit reductions. Not only is that a shaky position, but the Congressional Budget Office (CBO) gave the American people some bad news recently.

CBO Report

The CBO released a report that warned the deficit is getting out of control. The deficit is the amount of money the government spends beyond its revenue. To put it simply, if the government brings in $5 per year but spends $35, the deficit would be $30.

In the case of the US, the 2023 federal budget deficit amounted to $1.4 trillion. Currently, the deficit is 5.3% of the gross domestic product (GDP) in 2023. The agency projects that it is going to grow in the coming years based on the policies passed. In 2033, the CBO estimated the budget deficit could reach $2.7 trillion. The deficit will amount to 6.1% of the GDP in 2024 and 2025, and in 2026 and 2027, it’s expected to fall.

Outlays (expenditures) for the government will increase from 23.7% of the GDP this year to 24.9% in 2033; meanwhile, the revenue will only total about 18.1% in 2033. That’s in part due to increased spending on America’s aging population.

Deficit Claims

During a speech on MLK Day, Just The News reported Biden said, “This year, federal deficit is down $1 trillion-plus. That’s a fact.” He slammed Republicans for being “fiscally demented.” According to the CBO, the federal deficit for the fiscal year 2021 was $2.8 trillion. However, the Treasury Department reported the national deficit was $1.38 trillion in the fiscal year 2022.

The deficit did decrease by $1.40 trillion between 2021 and 2022. The CBO stated that if legislative changes aren’t made, the deficit will continue to rise and bring the debt up to 118% by 2033 — a problematic reality for Biden. He hasn’t actually passed any policies to reduce the deficit. The only reason it has fallen is that government relief spending has dropped — and that is likely to be the case as America moves on from the health crisis.

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