Any hopes of ever balancing the federal government’s budget are looking just about impossible if Joe Biden gets his way.
Last year we saw a $3.13 trillion deficit, driven by a drop in tax receipts due to the tens of millions unemployed due to lockdowns, and massive spending on government assistance programs in the form of the PPP loan program for businesses, enhanced unemployment benefits, stimulus check payments, and more. Even as the economy has rebounded, a similar deficit is in store this year as Biden has pumped more stimulus into the economy, and fueled a record labor shortage by keeping enhanced unemployment benefits in effect (which will fortunately expire soon).
According to US News & World Report:
The administration said Friday that it is forecasting a deficit of $3.12 trillion for the budget year that ends Sept. 30, the second largest in history.
And for the next decade, the administration never sees the annual deficits falling below $1 trillion. For the 2022 budget year, which begins Oct. 1, the administration is projecting a deficit of $1.54 trillion.
The non-partisan Congressional Budget Office forecasts an even lower deficit of $1.15 trillion next year. However, the CBO forecasts are based on current law and do not take into account what the impact will be of two massive spending bills that have yet to pass Congress.
The two other spending bills on the horizon are the $1 trillion infrastructure bill (that has seemingly little to do with actual infrastructure), and the $3.5 trillion measure supported only by Democrats that offers expanded health care, universal Pre-K, free community college, funding for historically black colleges, an expansion of the Pell Grant, hundreds of billions for clean energy development, hundreds of billions for public housing, and much more. The Democrat chairman of the House Budget Committee John Yarmuth admitted that the bill was a “democratic wish list.”
Fortunately, the latter bill is likely to be thwarted by Senators Kyrsten Sinema and Joe Manchin.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros, Dumb and Dumber: How Cuomo and de Blasio Ruined New York, Debunk This: Shattering Liberal Lies, and Spygate
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