The White House Friday released President Biden's $6 trillion budget proposal for the 2022 fiscal year beginning October 1, making the case that those record expenditures are needed to ensure a lasting recovery and protect American competitiveness in wake of the devastation caused by the coronavirus crisis.
- According to the White House, its $2.8 trillion American Jobs Plan is expected to raise the national debt by over 500 billion dollars in just ten years after it raises 1.7 trillion during that period from tax hikes primarily for corporations.
- The budget states an expectation of a long-term deficit increase of 529 billion dollars following their highly anticipated plan which will be releasing revenue through taxes mainly on big companies and not individuals while spending 2248 million more than they take in with this new economic stimulus package.
- The American Jobs Plan would spend $565 billion on research and development, manufacturing, and job training over the next decade. The plan allocates a whopping $546 billion to modernize transportation infrastructure which will not only create jobs but also save us money in gas expenses down the road by making it easier for goods to be transported from one place to another without getting stuck in traffic. Finally, there is an investment of 308 billion into clean drinking water systems as well as our electrical grid that need upgrading if we want them up-to-date with technological advances like solar or wind power sources are expected between 2020 - 2030 according to some experts.
- The Biden Administration expects that the $1.8 trillion American Families Plan will reduce the deficit by a net of $270 billion over 10 years, after accounting for revenue from tax hikes aimed at wealthy individuals and corporations.
- The White House is proposing a significant investment in education, families, and children with $1 trillion over the next decade for free 4-year college, childcare programs that would be universal as well as proposals to extend tax credits like Child Tax Credit.
- The White House has said it expects both plans to pay for themselves over the next fifteen years thanks to the tax hikes included in each. The plan will also offset law reform that is expected at some point, and this could lead it back into a deficit again.
- The budget also accounts for $16.8 trillion in discretionary spending over a decade, including $8.2 trillion on defense and an additional amount of money for military programs such as the VA healthcare system or nuclear weapons maintenance.
BIG NUMBER FOR BIDGET
The White House predicts the nation’s Gross Domestic Product will grow 3.2% in 2022 before growth falls to 1.8% in 2024 and stays at that level through 2027, but those are base-level forecasts which do not account for President Trump's American Families and American Jobs plans; they also don't account for a rise in interest rates as the economy recovers.
The United States' GDP is predicted to continue growing after 2020 according to new projections made by The White House this past week.
“The budget will reduce the deficit and improve our nation’s finances,” Shalanda Young, acting director of the Office of Management and Budget, told reporters Friday. “That’s because its front-loaded investments are more than paid for through permanent tax reform that will ensure corporations and the wealthiest Americans pay their fair share.”
How much of Biden’s request will actually become law. It’s up to Congress to approve new federal spending.
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