BIDEN PROPOSES 6 TRILLION BUDGET
June 15, 2021 - Douglas Myser
Biden proposes 6 trillion budget. President Biden will propose a $6 trillion budget that would give the United States the largest amount of federal spending going back to the second World War. The deficit would be $1.3 trillion in the next decade. President Biden's budget calls for the government to spend $6 trillion in 2022 and for total spending to rise to $8.2 trillion by 2031. The growth is going to happen by President Biden's two part agenda to upgrade the nation's infrastructure and substantially expand the social safety net contained in his American Jobs Plan and American Families Plan, with other planned increases in discretionary spending. The proposal shows the sweep of President Biden's ambitions to show the government's power to help more Americans attain the comforts of a middle class life and to lift the U.S. industry to better compete globally in an economy the administration believes will be dominated by a race to reduce energy emissions and combat climate change. Biden proposes 6 trillion budget.
President BIden's plan to fund his agenda by raising taxes on corporations and high income earners would begin to shrink budget deficits in the 2030s. Administration officials have said the jobs and families plans would be fully offset by tax increases over the course of 15 years, which the budget request backs up. In the meantime, the United States would run significantly higher deficits as it borrows money to finance its plans. Under the President's proposals, the federal budget deficit would hit $1.8 trillion in 2022 even as the economy rebounds from the pandemic recession to grow at what the administration predicts would be its fastest annual pace since the early 1980's. It would recede slightly in the following years before growing again to nearly $1.8 trillion by 2031.
The documents suggest President Biden will not propose major additional proposals in the budget, or that his budget will flesh out plans that the administration has thus far declined to detail. The budget is simply a request to Congress.