Washington – After weeks of promoting President Joe Biden’s benefits Proposed increases in spendingOn Friday, the White House will outline the implications of federal debt for its first budget plan.
The plan is already giving fodder to critics, following the New York Times I mentioned on Thursday That by 2024, debt as a share of the economy will be greater than it was during World War II.
The The campaign arm of the Republicans called the House of Representatives Biden said the $ 6 trillion budget plan for the fiscal year beginning in October is “crazy.”
The Republican National Committee of Congress also said that it is not surprising that the proposal was released the Friday before the weekend, when the public is less likely to notice the news.
The progressives flocked to Biden’s defense.
Debt was already on the way to reaching high levels, but the nation was not on its way to meeting general needs related to household economic security, climate change and other areas, It was tweeted by Seth Hanlon, a senior colleague At the Center for American Progress.
Hanlon, who was a special economic aide to former President Barack Obama, said there is no reason to believe that the fastest debt growth under the Biden plan will have a measurable economic impact.
“And certainly not about the (positive) effects of political changes,” he said in an interview.
– She told reporters traveling with Biden to Cleveland – The president promoted the economic benefits of his plans – That his proposals “will put us on a better financial basis over time.”
Psaki also said people should remember that Biden “inherited” $ 3 trillion in spending over the last year of the Trump administration to tackle the COVID-19 pandemic.
After Biden took office, Democrats approved another $ 1.9 trillion in coronavirus relief spending.
Biden has since proposed spending $ 4.1 trillion on infrastructure, education and safety net programs for families through what he calls the American Jobs and American Families plans. He wants to pay for these packages through higher taxes on corporations and wealthier Americans.
at April preview of his 2022 budget request, Management has also determined how to split the $ 1.5 trillion in discretionary spending.
It was a reversal of priorities than before President Donald Trump’s budget proposals, Which led to a curtailment of domestic programs and a request from Congress to increase military spending.
Biden said, in April, he would request a token increase for the Pentagon while asking for big boosts in spending on education, housing, public health, the environment and more. The administration argues that past “divestment” in those regions has damaged the nation’s ability to combat climate change, rebuild the economy and address racial inequality.
Friday’s full budget proposal will present the overall fiscal picture, including mandatory spending levels on programs like Medicare, Medicaid and Social Security, the main drivers of federal spending growth.
It will also explain how his tax and spending plans will affect the country’s finances over the next decade.
In the Trump era, debt has risen relative to the size of the economy even before the coronavirus 2020 spending began.
An aging population, rising healthcare costs, and accruing benefits – plus tax revenues that fail to meet spending obligations – were the main drivers of the debt spike prior to the virus, according to Peter J. Peterson Foundation, Which is a non-partisan organization focusing on the country’s long-term financial challenges.
While Biden will compensate his American families and American jobs plans through tax increases, the Responsible Federal Budget Center He argues that this is not good enough.
The Financial Supervisory Group said the 10-year budget forecast should include a plan to address the structural deficit that precedes the massive spending related to the Coronavirus epidemic.
Republicans were already preparing to pounce on the budget imbalance.
South Carolina Senator Lindsay Graham recently asked The nonpartisan Congressional Budget Office calculates how much of the deficit would increase if Biden’s plans were not paid. Estimated CBO The coronavirus relief package that has already been passed along with Biden’s new proposals would increase the deficit by 48% without compensation.
Senator Roy Blunt, a Republican from Missouri, said this week that Biden’s plans add a lot of red ink.
He said, “We have many challenges that the government needs to deal with, but none of them is World War II.”
Biden Negotiate with a group of Republican senators On the infrastructure component of their plans, but both sides reject the other side’s suggestion of how to pay for it.
Biden’s full budget proposal must pass through Congress, with the Democrats having only a slim majority.
Contribution: Bart Janssen, USA Today.