Biden asks for more government spending
Because the federal government just can’t seem to get by on the trillions it spent in the FY 2022 budget, the Biden administration is asking Congress for billions more:
President Joe Biden unveiled a $5.8 trillion budget request designed to appease moderate Democrats on Monday, with a proposal that emphasized deficit reduction, additional funding for police and veterans, and flexibility to negotiate new social spending programs.
Congress historically sets presidential budgets aside, and razor-thin Democratic majorities mean most proposals stand a slim chance of passing — but they do form a key messaging device. The White House included measures that would add up to the biggest tax increase in history in dollar terms, helping stabilize deficits relative to the size of the economy.
We’ll have more on that tax increase in another post. Let’s just say Mr. Biden is not a born-again deficit hawk worried about the size and cost of government. Instead, he’s embracing the class warfare wing of the Democratic party…in an election year.
Not a good plan.
Speaking of which – where does Team Biden want to spend all that cash?
The 2023 budget calls for $1.598 trillion in so-called discretionary spending — areas that aren’t linked with mandatory programs like Social Security — with $813 billion for defense-related programs and $769 billion for domestic spending.
That marks a 5.7% increase from the omnibus spending bill for the 2022 fiscal year that was signed by Biden earlier this month. The budget would reduce deficit spending by $1 trillion over the coming decade, buoyed by the elimination of pandemic assistance programs, but with shortfalls averaging 4.7% of GDP over a decade, the national debt continues to climb.
Even with a dodgy tax hike, the feds would spend more money than they collect in taxes. Why? Because as it is today, and has been for a very long, Washington has a spending problem – not a revenue problem.
Mr. Biden is just the latest in a long line of pols who may have paid lip service to that fact (if at all), but never did anything about it. Except spend and tax more.