Biden’s COVID-19 rescue bill cost revised to $ 2.1 trillion

President BidenJoe Biden Biparty lawmakers press Biden to ‘immediately’ evacuate Afghans who aided US forces Chris Wallace: backlash over Fauci emails ‘Highly political’ Democrats demand justification, GOP shouts at witch hunt as McGahn finally testifies MOREThe COVID-19 relief bill that became law in March will end with a price tag of $ 2.1 trillion over the next decade once interest charges are factored in, the Congressional Budget said on Friday. Non-partisan Office (CBO).

The revised estimate – higher than the $ 1.9 trillion associated with the measure earlier this year – came in response to a request from Sen. Lindsey grahamLindsey Olin GrahamTop Manufacturing Group Urges Congress to Protect House Lawmakers from “Dreamers” Calls on Pentagon to Support Re-enactment of Israel’s Iron Dome Defense System Graham says Israel will demand $ 1 billion from the United States after the Gaza war MORE (SC), the top Republican on the Senate Budget Committee.

The CBO said the spending plan would result in borrowing costs of $ 208 billion.

But the budget rating bureau noted that its latest estimate does not take into account how the implementation of the legislation will affect the economy.

A larger economy would likely lead to higher tax revenues, as well as lower spending on safety net programs and lower borrowing costs.

Without taking this into account, the CBO said the debt burden would reach 113% of gross domestic product (GDP) by 2031, up from a projection of 107% in February.

Republicans criticized Biden for the cost of his spending plans beyond the COVID-19 relief measure. The president called for an increase in non-defense spending by 16% in fiscal 2022, with more immediate measures totaling $ 4.1 trillion for infrastructure and family support.

Biden has said he wants to raise taxes on corporations and wealthy Americans to cover the $ 4.1 trillion price tag, an approach Republicans vehemently oppose.

In response to a second request from Graham, the CBO found that increasing non-defense spending in 2022 to the level Biden sought would add $ 655 billion in additional spending over a decade, assuming spending levels remain on par with inflation. Of this amount, $ 47 billion would be in interest charges alone.

Along with the already adopted COVID-19 relief measure, the budget increase would bring the debt burden to 115% of GDP by 2031, according to the CBO.

Although Biden has not discussed how to pay for his proposed budget increase, he is expected to release a full budget proposal on May 28 that is expected to include a 10-year budget outlook, offering clues on the issue of Whether Biden will seek to meet the long-term financial outlook and whether he plans to cover the costs of the increased non-military spending.

The CBO also estimated that without higher taxes for corporations and wealthy Americans, deficit funding for Biden’s infrastructure and family proposals would add $ 4.4 trillion to the deficit.

In total, the COVID-19 relief plan, the increase in the non-defense budget, and the infrastructure and family proposals would add $ 7.6 trillion to the deficit and bring the debt to 130% of GDP by the end of this year. the decade, assuming no action was taken to increase income, the CBO said.

Biden said funding the two programs at $ 4.1 trillion just through deficit spending was not an option.

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