Biden and congressional Democrats claim that all of their promises can be financed by taxing corporations and families earning over $400,000. Which is why all of this new spending will eventually bring huge new taxes.
If rates exceed the CBO projections by even just one percentage point, it would add $30 trillion in interest costs over 30 years. And these figures assume that interest rates still remain comparatively low. The long-term danger is that today’s irresponsible government borrowing is set to collide with 74 million baby boomers retiring into Social Security and Medicare systems that are projected by the Congressional Budget Office to run a $112 trillion cash shortfall over the next three decades, including the resulting budget interest costs.Īll this debt is projected to make interest the largest item in the federal budget, consuming nearly half of all annual tax revenues within three decades. If his entire agenda is enacted, the national debt held by the public - which was just under $17 trillion before the pandemic - would reach $44 trillion a decade from now. Biden still has $3 trillion in leftover campaign promises covering Social Security, health care, higher education and other issues.
This year’s Democratic spending binge is not the end of the story. Instead, it will pay interest to bond holders. That’s $180 billion annually that could otherwise provide tax relief, assist veterans, or improve infrastructure. If interest rates ever nudge back up past 3 percent, this year’s $6 trillion borrowing spree will cost $180 billion in additional interest costs every year, forever. Instead, it will be spent on a grab bag of long-standing liberal policies.Īll this debt has a permanent cost. It would be enough money to eliminate the employee side of the payroll tax, or deposit $60,000 into each family’s bank account. That is quadruple the net cost of the 2017 tax cuts. Even those figures understate the bill’s true cost by at least $1 trillion by pretending that policies like the expanded child tax credit will expire within a few years, even though the Democrats’ policy is to make them permanent.Īdd it all up, and congressional Democrats are set to commit $8 trillion in new spending over the decade, of which $6 trillion would be borrowed. Biden’s 8.4 percent discretionary spending increase would permanently raise the baseline by $1 trillion over the decade.Īnd now, Democrats are trying to pass a $3.5 trillion reconciliation bill that would raise deficits by as much as $1.75 trillion. The Senate has passed a $550 billion infrastructure bill that is financed mostly with gimmicks.
Lawmakers have already enacted a $1.9 trillion “stimulus” bill filled with unnecessary items like unemployment benefits that exceed the wages for many available jobs, and bailouts to states already running budget surpluses. Yet the 2021 spending blowout is set to dwarf those costs.
Last year, lawmakers enacted $3 trillion in (mostly) justified deficit spending for a once-in-a-lifetime pandemic. The bill, which aims to move America closer to a European-style social-welfare state, will shorten the fuse on a debt bomb that’s already set to detonate. “It’s going to cost nothing,” President Biden said of the Democrats’ massive $3.5 trillion spending binge, which House Speaker Nancy Pelosi is scrambling to pass this week.ĭon’t believe it. Democratic senators back House progressives’ push to pass Biden agenda.
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