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Friday, December 3, 2021

Biden’s Build Back Better Plan Will Increase $ 367 Billion Deficit Over 10 Years: CBO

The Congressional Budget Office (CBO) said Thursday that if Congress passes President Joe Biden’s deficit widening bill, the U.S. deficit would increase by $ 367 billion over 10 years.

This estimate does not include the additional revenue that could be generated from tax enforcement activities, which the CBO expects will be $ 207 billion over the next 10 years.

The nonpartisan federal agency’s $ 207 billion figure is far less than the White House’s “conservative” estimate of $ 400 billion, which it plans to achieve by raising the 15 percent minimum tax on income that the most profitable companies report on their books.

Overall, the CBO estimates that $ 1.63 trillion will be spent on passing the law. The agency said the changes to the tax code and other regulations will generate more than $ 1.26 trillion in revenue.

Meanwhile, some CBO numbers were below the Biden administration’s estimates, including the cost of universal pre-K and affordable childcare, which the agency found would be roughly $ 382 billion, compared with the bill’s estimate of $ 400 billion.

Prescription drug reforms will save nearly $ 300 billion, according to the CBO, $ 50 billion more than the White House estimates. The CBO also estimated that the four-week paid vacation included in the House’s version of the bill would be worth $ 205 billion. Lawmakers removed paid leave from the bill and then partially reinstated it.

Both the CBO and the White House have provided relatively close estimates for things like the cost of affordable housing, which are roughly $ 150 billion. The CBO said it would cost $ 36 billion to expand Medicare through a hearing, while the White House said it would be $ 35 billion.

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Biden’s $ 1.75 trillion social spending plan came close to Thursday’s final vote, but House Speaker Nancy Pelosi (California) and other lawmakers said Thursday that they will only proceed to the final vote on the bill “as soon as” the CBO issues the final budget estimates for consideration by members of the House of Representatives.

The White House welcomed the CBO report on Thursday, calling it “good news for Democrats,” despite worse-than-expected results, CBS reported.

Treasury Secretary Janet Yellen also welcomed the CBO analysis, noting that “the combination of CBO estimates over the last week, Joint Tax Committee estimates and Treasury analysis makes it clear that Build Back Better is fully paid and will actually reduce our country’s debt over time, generating over $ 2 trillion. dollars through reforms that require the richest Americans and large corporations to pay their fair share. “

“A particularly important aspect of the proceeds from the law is the historic investment in the IRS to combat high-paid tax evaders that they owe, which the Treasury estimates will generate at least $ 400 billion in additional revenue,” said he. This is stated in a statement by the Minister of Finance, published on Thursday.

Meanwhile, the Joint Tax Committee earlier this month estimated that the bill would generate about $ 1.5 trillion in revenue, although its analysis did not include how much tax claims it would bring.

To follow

Katabella Roberts is a reporter currently based in Turkey. She covers news and business for The Epoch Times with a special focus on the United States.

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