Biden’s budget shows how painful serious deficit reduction will be

Source: Washington Post
by Henry Olsen

“President Biden’s proposed budget for fiscal year 2024 is designed to seem fiscally responsible. While it includes a long list of spending increases for Democratic priorities such as paid family leave and expanded subsidies for pre-K, the White House claims it would reduce deficits in the next decade, mostly through new taxes on the wealthy. But Biden’s plan still creates a looming fiscal debacle for one simple reason: rising interest payments. Biden’s budget itself acknowledges this if you know where to look. While the plan shows that it would shrink the ‘primary deficit’ — the shortfall of government revenue to cover its expenses — relative to current spending levels over the next decade, it also projects that interest payments would easily wipe out those savings.” (03/13/23)