{"id":2002056,"date":"2023-08-16T03:11:01","date_gmt":"2023-08-16T07:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congressional-budget-review-shows-biden-drowning-americans-in-a-sea-of-red-ink\/"},"modified":"2023-08-16T03:15:49","modified_gmt":"2023-08-16T07:15:49","slug":"congressional-budget-review-shows-biden-drowning-americans-in-a-sea-of-red-ink","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congressional-budget-review-shows-biden-drowning-americans-in-a-sea-of-red-ink\/","title":{"rendered":"Congressional budget review reveals Biden&#8217;s excessive spending burdening Americans with debt."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcongressional-budget-review-shows-biden-drowning-americans-in-a-sea-of-red-ink%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2002056&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"article-content\">\n<h2>Troubling Signs in the \u2064Nation&#8217;s \u200cFinances<\/h2>\n<p>In his <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2023\/02\/07\/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery\/\" target=\"_blank\" rel=\"noreferrer noopener\">State of\u200b the Union message<\/a> in February, President Biden bragged that his \u201cadministration cut the deficit by more than $1.7\u2063 trillion \u2014 the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dont-make-the-mistake-of-falling-for-joe-bidens-economic-fairy-tale\/\" title=\"Don\u2019t Make the Mistake of Falling for Joe Biden\u2019s Economic Fairy Tale\">largest deficit reduction<\/a> in American history.\u201d That boast lasted barely six months.<\/p>\n<p>Biden\u2019s supposed \u201cachievement\u201d always amounted to less\u200b than \u2063meets the eye. His administration deserves about\u2063 as much credit for not continuing the trillions of dollars in spending disguised as \u201cCovid relief\u201d \u2014 only because a few Democrats <a href=\"https:\/\/thefederalist.com\/2021\/12\/13\/republicans-should-force-democrats-to-vote-on-the-full-5-trillion-build-back-bankrupt\/\" target=\"_blank\" rel=\"noreferrer noopener\">refused \u200bto continue the binge in perpetuity<\/a> \u2014 as someone on a bender who stops drinking because he\u2019s run out of booze.<\/p>\n<blockquote>\n<p>But the Congressional Budget Office\u2019s \u200drecent\u200b monthly budget review shows how much the nation\u2019s\u200d financial situation has deteriorated\u200d just since February. Even more alarming, it\u2062 hints at the larger fiscal problems yet to\u2062 come.<\/p>\n<\/blockquote>\n<h2>Taxes Down&#8230;<\/h2>\n<p>A table at\u2062 the front of the <a href=\"https:\/\/www.cbo.gov\/system\/files\/2023-08\/59377-MBR.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">CBO report<\/a> lays\u200d out the problem in stark detail: Over\u2063 the first 10 months of the\u2062 current fiscal year, the federal deficit has more than doubled compared to last year, rising from $726 billion\u2064 to $1.7 trillion, after the effects of timing shifts are removed.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><\/figure>\n<\/div>\n<p>Even compared to CBO\u2019s\u200c baseline estimates in May, which forecast a deficit of \u2063\u201conly\u201d $1.5 trillion this year, the budget \u200dsituation declined by another $200 billion.<\/p>\n<p>The causes of fiscal deterioration are myriad. Tax receipts\u2064 have fallen by roughly 10 percent compared\u200d to last year, largely because <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congressional-budget-review-shows-biden-drowning-americans-in-a-sea-of-red-ink\/\" title=\"Congressional budget review reveals Biden's excessive spending burdening Americans with debt.\">individual income tax receipts declined 20 \u2064percent<\/a>. The budget gnomes guessed that \u201cone factor may be smaller collections of taxes on capital gains\u201d due to recent gyrations in the stock market. For all the Democratic obsession with \u201ctaxing the rich,\u201d this data point\u200c should provide \u2062an important reminder that doing so only works\u200b if \u201cthe rich\u201d actually make money in the first place.<\/p>\n<h2>&#8230;And Spending Up<\/h2>\n<p>A bigger contributor to the deficit increase came in the form \u200bof increased spending, more than half a trillion dollars\u2019 worth, if one controls for\u200b the effects of timing shifts. (These shifts occur when the end of a month, or\u2063 fiscal year, occurs on a weekend.) Major \u2063mandatory spending programs rose by a collective $206 billion, a \u2062sum so large because payments in Medicare and Social Security increased according \u2062to inflation, which has skyrocketed to 40-year highs.<\/p>\n<p>Spending\u200d on the Department of Education rose by $91 billion compared to \u2063last fiscal year. That change occurred because the\u2064 administration booked charges related to two of its latest student \u201cloan\u201d\u200b giveaway proposals, regarding public service forgiveness\u200b and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-we-really-need-to-do-to-make-college-affordable\/\" title=\"What We Really Need To Do To Make College Affordable\">income-driven repayment<\/a>. Even after the Supreme Court struck down its <a href=\"https:\/\/thefederalist.com\/2022\/08\/26\/how-joe-bidens-welfare-for-college-grads-will-stoke-inflation\/\" target=\"_blank\" rel=\"noreferrer noopener\">$20,000-per-borrower giveaway<\/a>,\u2062 this administration is still spending billions of taxpayer dollars it doesn\u2019t have trying to buy \u200bstudents\u2019 votes.<\/p>\n<h2>Debt Bomb Ahead<\/h2>\n<p>But the biggest increase in spending came\u2064 in an ominous category: Debt service costs rose by \u2062$146 billion, or 34 \u200bpercent,\u2063 compared to this time last year. As interest rates\u200b rise due to the inflation <a href=\"https:\/\/thefederalist.com\/2022\/06\/06\/why-joe-bidens-inflation-plan-will-only-make-americans-more-miserable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Democrats\u2019 spending sprees have caused<\/a>, the cost of servicing our debt grows ever higher.<\/p>\n<p>Even\u200c the $572 billion the federal government has paid in interest costs\u200c this \u2063fiscal year will likely prove lower than the sums Washington will pay going forward. At the beginning of \u2062the current\u200d fiscal year last Oct. 1,\u200c the Federal Reserve had <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/world-stocks-edge-higher-for-sixth-day-of-gains-dull-business-activity-hits-euro\/\" title=\"World stocks edge higher for sixth day of gains, dull business activity hits euro\">set interest rates<\/a> in a range of between 3-3.25 percent. Now, they are between 5.25-5.5 percent. As a result, when\u200b the federal \u2064government \u200chas to take on additional debt, and\/or refinance\u200c its existing debt, it will have to pay much higher \u2063interest rates to\u2062 do so.<\/p>\n<p>The $572 billion paid in interest costs this fiscal year represents 15.5 percent of receipts, \u2062or\u2062 nearly $1 \u2064in $6 the federal government has taken in over the last 10 \u200dmonths. And with those interest costs almost certain to grow, \u2063at a point \u200bin the not-too-distant future, we could \u200dface a scenario where borrowing merely <a href=\"https:\/\/www.wsj.com\/articles\/the-silent-price-youll-pay-for-our-mounting-national-debt-federal-reserve-powell-doom-loop-interest-healthcare-11664484369\" target=\"_blank\" rel=\"noreferrer noopener\">begets more interest<\/a> and more borrowing.<\/p>\n<p>All of this fiscal doom and gloom \u2062comes at a time when \u200cthe administration is trying \u2062to \u200dtake credit for its economic\u200c \u201cachievements.\u201d \u2063Somehow, the president has yet to take credit for the fiscal elements of its agenda. But to borrow \u200cthe \u200bWhite House\u2019s favored political messaging, \u201cTrillions\u200c of \u200ddollars in\u200c debt, and no way out \u2014 that\u2019s \u200dBidenomics.\u201d<\/p>\n<hr class=\"wp-block-separator\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In February, President Biden proudly claimed to have reduced the deficit by over $1.7 trillion, the largest in American history. However, this achievement quickly lost its significance. Biden&#8217;s administration deserves minimal credit for this supposed accomplishment.<\/p>\n","protected":false},"author":521,"featured_media":2002057,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2002056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2002056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2002056"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2002056\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2002057"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2002056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2002056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2002056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}