BREAKING NEWS: Biden will announce a $6TRILLION budget on Friday and push federal spending to the highest level since the Second World War spark more fears of rapid inflation
President Joe Biden is set to unveil a massive spending proposal that includes $6 trillion in government spending for the next fiscal year – an amount that would bring federal spending up to levels not seen since World War II.
The budget would have the nation continue running deficits of more than $1 trillion, a level it already topped with the onset of the pandemic – with estimated annual deficits of $1.3 trillion amid enacted and proposed federal programs.
The spending levels would continue on an upward trajectory, hitting $8.2 trillion at the end of a decade, according to detailed top-line numbers that leaked to the New York Times.
President Joe Biden’s budget will propose $6 trillion in spending for the next fiscal year
The budget is Biden’s first chance to put his mark across-the government. The blueprint reflects some of the proposals he has already made – including a major infrastructure program that he first proposed at $2.3 trillion but now wants to trim to $1.7 trillion in an effort to secure GOP support in the Senate.
The big spending boost and ongoing deficits are certain to draw Republican opposition, although the deficit also rose each year Donald Trump was in office and spiked during the pandemic.
The budget is merely a blueprint that each house of Congress will vote on, and will shape the spending bills the House and Senate try to enact to make the programs reality.
According to the Times look at the budget, Biden’s proposed tax hikes on upper income earners would start bringing the deficit numbers down in the 2030s, at which point they would become fully effective.
The administration is forecasting a deficit of $1.8 trillion in 2022 amid an economic rebound and a series of coronavirus relief proposals that were enacted.
Trump’s proposed budget for 2021 was $4.8 trillion.