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Biden Budget to Add $ 2 Trillion to the Deficit: Study

Biden Budget to Add $ 2 Trillion to the Deficit: Study

WASHINGTON – US Democratic Presidential Candidate Joe Biden’s tax and spending policies would add nearly $2 trillion to federal deficits over the next decade, according to an analysis released Monday by a non-partisan research group.
The Penn Wharton Budget Model, a University of Pennsylvania research project, says the Democratic presidential candidate will raise just under $3.4 trillion in new income through 2030 – thanks to tax increases primarily targeting the rich – while offering to spend nearly $5.4 trillion.
Deficits are no longer a top priority for voters now, as the nation battles the COVID-19 pandemic and natural disasters and Congress contemplates another trillion dollars or more in humanitarian aid.
According to a survey conducted by Pew Research in June, the percentage of voters who see deficits as a “huge problem” has fallen to 47%, from 55% in 2018. And voters are more concerned about issues like unemployment, affordable health care and treatment of minorities through the criminal justice system, as well as the coronavirus pandemic, the poll found.
But the estimated price of Biden’s policies suggests why they could prove to be a hard sell in Congress – especially if Republicans retain control of the Senate or reclaim the House.
The $5.4 trillion in proposed new spending is a far cry from the tens of trillions of dollars offered by Biden’s former main rival for the Democratic presidential nomination, Sen. Bernie Sanders, I-Vt., Of which 16.3 trillion dollars to fight climate change. But that would increase the federal debt by 0.1% by 2030, according to the analysis.
Biden’s campaign officials could not be reached for comment on Penn Wharton’s analysis.
President Donald Trump, who accused Biden of leading a socialist agenda, promised in 2016 to pay down the national debt in eight years. Instead, the debt held by the public grew from nearly $14.7 trillion in fiscal 2017 to $16.8 trillion in fiscal 2019, according to figures compiled by the Congressional Budget Office.
House Budget Speaker John Yarmuth, who has often lamented the increase in debt under Trump’s watch, said he was not concerned that Biden’s policies would also lead to increased borrowing.
The Kentucky Democrat told CQ Roll Call in an email that “investments” in areas such as education, health care, infrastructure and research and development “have the potential to rebuild and reshape our economy, expand opportunities for millions of Americans and improve our fiscal outlook over time.”
Yarmuth and others have argued since even before the pandemic hit U.S. shores that low-interest rates and inflation have made taming the national debt less of an immediate priority.
“We cannot allow unfounded debt fears to deter us from meeting the urgent needs of the American people and alleviating the real pain and suffering in the economy and in communities across the country,” said Yarmuth Monday.
(Sahar News Monitoring Desk)

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