The White House is claiming that President Biden’s budget, released today, would cut the deficit by $3 trillion via a nearly $5 trillion tax increase. But that’s intentionally misleading. What it would do, if the estimate is correct, is cut $3 trillion off the massive deficits already projected over the next decade.
According to the Wall Street Journal:
The press is reporting that President Biden’s 2024 budget proposal released Thursday would cut the deficit by $3 trillion over 10 years. Way to bury the lead. The plan raises taxes by nearly $4.7 trillion and would increase revenue and spending to unprecedented plateaus as a share of the economy . . .
All of these tax increases are projected to raise revenue as a share of GDP to a new higher level of 20.1% of GDP in 2033, which is far above the 50-year average of 17.4% . . .
Even with all the taxes, deficits over the next decade would total $17 trillion, and debt held by the public as a share of GDP would rise to 109.8% in 2033 from 97% last year. Mr. Biden’s budget is a recipe for an economically and militarily weaker America, but at least he’s warning voters of his intentions—unlike in 2020.
Meantime, the White House is touting Biden’s 3.2% defense spending increase as a win for national security. But you don’t need a Noble Prize in Economics to understand that this is below the 6% inflation rate, and therefore a cut.
In the end, Biden’s deceptions assume that Americans are basically stupid. It’s a typical liberal presumption, which he will find is terribly mistaken.