5 big problems with Biden’s big government budget
President Joe Biden finally released his budget request for fiscal year 2023 on Monday, nearly two months late.
Unsurprisingly, the Biden budget is bloated with overspending, harmful taxes, more regulation and control over American lives, and damaging policy proposals.
The budget is important because the power to tax and spend is key to everything the federal government does.
If we are to save America from politicians, bureaucrats, and cultural elites empowered by expansive government spending, it is necessary to reverse the growth in size, scope, and reach of government.
Congress should reject Biden’s budget proposal and focus instead on solving the biggest challenges facing the country, such as reversing government spending and inflation, promoting energy independence, empowering parents and strengthening the rule of law and free enterprise so that the United States can out-compete any competitor, including communist China.
There are five major problems with Biden’s budget:
1) Reckless and Inflationary Spending
The administration jokingly claims that this budget promotes fiscal responsibility.
Public spending is already unsustainable. Unfortunately, Biden would press the gas pedal on government spending, pretending there are no consequences.
American families are suffering from levels of inflation not seen in four decades, hitting 7.9% last month. This inflation has been fueled by irresponsible government spending and monetary policies, coupled with harmful labor, energy, food, housing and trade laws that have pushed prices up.
On top of the spending spree that Biden and his congressional allies rode last year, Biden’s budget calls for $72.7 trillion in spending over the next decade, averaging more than $1.4 trillion. more dollars in annual spending than even this year’s extravagant budget.
Debt would skyrocket from $30.2 trillion today to over $44.8 trillion over the next decade. Annual budget deficits would start at $1.2 trillion in fiscal year 2023 and increase to $1.8 trillion by 2032.
It’s like an average family that already has $234,000 in debt and spends between $9,300 and $14,000 more than it earns each year, with its total debt reaching $347,000 in just 10 years.
Ordinary households cannot spend without restraint, nor should the federal government be able to. Yet Biden’s budget represents a complete rejection of the idea that the federal government is bound by any sort of constitutional limitations.
The Biden administration’s policies are already eating away at household budgets with massive inflation, and this budget would squeeze them further through reckless spending and tax hikes.
2) Radical political priorities
The Biden budget is a liberal wish list, featuring one outrageous policy proposal after another.
Despite a bipartisan rejection of the radical idea that taxpayers should ever fund abortion, it does not include the Hyde Amendment. The Hyde Amendment has saved an estimated 2.4 million lives since 1976. Biden has also proposed a 40% increase in Title X funding, dramatically increasing federal grants to entities that perform abortions.
Even with gasoline prices reaching over $4 a gallon, the Biden budget doubles down on this administration’s dubious Green New Deal agenda that would jeopardize America’s energy diversity and choke off our energy supply.
Sending billions of tax dollars to unproven energy sources politically preferred by liberal elites is cronyism. At a time when we face authoritarianism around the world, we should instead promote energy freedom here at home.
Biden is proposing that an unprecedented level of federal funding and control be given to the educational institution, along with a huge increase in grants for college education, even though current grants are already inflating tuition fees. schooling.
Even though the central topic of a budget document is the nation’s finances, the Biden budget stays true to left-wing social causes throughout.
The main budget document uses the word “equity” 73 times, “equitable” 39 times, “diverse” or “diversity” 18 times, “inclusion” or “inclusive” 18 times, and the specific phrase “transgender, queer and intersex” five times.
On defense, the Biden administration is once again touting investments in research and development, while shrinking our military capacity through retirements of ships and aircraft at a faster rate than replacements.
As the Russian invasion of Ukraine shows, the military must be able to deter – and if that fails, fight – tonight, not five to ten years from now.
Moreover, instead of investing in military capabilities and capabilities, the Biden administration is choosing to seek billions of dollars for initiatives that would be better suited to a Green New Deal than to the Department of Defense. On defense, it’s a budget that doesn’t take the Chinese threat seriously and allows inflation to erode defense dollars.
The budget would even allow Medicare to go bankrupt in 2026 and the Social Security trust fund to run out in 2033. Both programs need reform to deliver better outcomes for those who depend on them.
3) Harmful tax increases
The Biden budget proposes $2.5 trillion in damaging tax increases that will hurt American families.
That doesn’t even include general tax increases resulting from the end of Trump’s personal tax cuts starting in 2026. All Americans’ tax rates would rise under Biden’s plan, and the standard deduction would be reduced by half.
Tax increases would also be devastating for American businesses. A proposed 7 percentage point increase in the corporate tax rate would give the United States the highest corporate tax rate among the 38 countries of the Organization for Economic Co-operation and Development.
Research shows that labor bears between 75% and 100% of the burden of corporate tax increases in the form of lower real wages and fewer jobs.
Under Biden’s plan, business spending on capital investments would begin to disappear by the end of this year, making it more expensive to add manufacturing capacity or new equipment.
This is exactly the wrong policy prescription, coming into effect just when America needs more investment at home to outpace China.
Biden is even proposing a one-of-a-kind unrealized capital gains tax in an effort to tax the assets of wealthy Americans. Misrepresented as a “billionaire minimum income tax,” this convoluted wealth tax proposal would lead to less investment in America, lower incomes for workers, and more power for bureaucrats, lawyers, and accountants.
All the new tax provisions mean more money for the IRS. The budget provides for an 18% increase in agency funding.
4) Loaded with gadgets
In addition to the many spending, tax and policy issues in this budget, it is also filled with gimmicks and optimistic economic assumptions, including a contingency fund that could be used to introduce trillions of dollars in new programs. governmental. what is directly proposed in this budget.
We know that the excessive government spending, heavy taxes and costly regulations called for in this budget are a recipe for economic stagnation. Despite this, the Biden administration imagines its budget will produce low inflation, steady growth, and low unemployment, when in reality the opposite is likely.
5) Irresponsible delay
The president is required by law to submit his budget by the first Monday in February. Biden missed that deadline and is filing his budget documents nearly two months after they were due.
Biden’s budget for fiscal year 2023 is the second-most recent presidential budget in history (excluding presidential transition years), 49 days late, after only President Barack Obama’s 65-day miss for fiscal year 2014. .
This blatant disregard for law and procedure is just another example of the lack of discipline by Biden and his administration.
In summary, the Biden budget is irresponsible and would hurt American families in many ways.
Congress must reverse the trend of excessive federal spending and inflation. The first step would be to reject Biden’s budget request and efforts to revive the failed big government socialist spending bill.
Instead, lawmakers should pass a budget plan to cut excessive government spending, put taxpayer dollars first, reform key rights programs, restore federalism, promote opportunity for all, and protect the rights and our American values.
This piece originally appeared in The Daily Signal