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US: Biden Spending Plan Adds $367 Billion to Deficit

US: Biden Spending Plan Adds $367 Billion to Deficit
folder_openUnited States access_time2 months ago
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By Staff, Agencies

The United States Congressional Budget Office [CBO] announced on Thursday that President Joe Biden’s signature Build Back Better legislation will cause the federal budget deficit to rise by $367 billion across a period of 10 years.

However, the agency also predicted that increased Internal Revenue Service [IRS] enforcement on tax evaders will lead to increased revenue, which is expected to contribute towards offsetting the package’s costs, according to CBS News.

The CBO's financial estimate was lauded by US Treasury Secretary Janet Yellen, whose department conducted its own analysis of the legislation along with the Joint Committee on Taxation.

Yellen said the calculations “make it clear that Build Back Better is fully paid for, and in fact will reduce our nation's debt over time by generating more than $2 trillion through reforms that ask the wealthiest Americans and large corporations to pay their fair share,” CBS News reported.

But several external analysts are not satisfied with the bill, and argue the legislation will not pay for itself.

The Penn Wharton Budget Model, an economic forecasting model from the University of Pennsylvania, predicts a debt increase of $275 billion, and the public policy institute Committee for a Responsible Federal Budget says the package will add $200 billion to the debt, according to The New York Times.