President Biden unveiled his election-year budget pitch Monday, calling for $5.5 trillion in tax increases by raising rates on the wealthy and corporations — while driving up spending on federal benefit programs, affordable housing and student debt cancellation, among other proposals.
The fiscal year 2025 budget — which is highly unlikely to be approved by Congress — matches last year’s topline tax increase level and spends $300 billion more while purportedly cutting the federal deficit by $3 trillion over the next 10 years, the White House said on Monday.
Fiscal hawks and Republicans alike were quick to call out the administration for the “reckless spending.”
The Committee for a Responsible Federal Budget noted the Office of Management and Budget (OMB) estimates project the national debt would surge to $45.1 trillion — or 105.6% of Gross Domestic Product (GDP) — by 2034 under the plan, up from $27.4 trillion or 97% of GDP.
Biden’s plan from last year, which had identical taxation levels and lower spending, put forward “the highest peacetime burden in American history, as well as the highest sustained taxes in American history.”
“Not only is the president raising taxes, but he’s using a substantial portion of it for new spending rather than deficit reduction, which just means even bigger tax hikes down the road when it’s time to rein in the deficit,” Riedl said.
“While hardworking Americans struggle with crushing inflation and mounting national debt, the President would increase their pain to spend trillions of additional taxpayer dollars to advance his left-wing agenda.”
“President Biden in his first 20 months signed legislation adding $4 trillion dollars in 10-year costs,” “The deficit doubled last year from $1 [trillion] to $2 trillion … its highest non-war, non-recession level in American history.”
The White House budget sets defense spending at $895 billion, an increase of 4.3% since fiscal year 2023, and lowers non-defense discretionary spending at $733 billion, a decrease of 3.4% from two years ago.
Biden unveils massive $7.3T budget with $5.5T in tax hikes post-State of the Union address?