{"id":2021740,"date":"2023-09-04T20:30:01","date_gmt":"2023-09-05T00:30:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-deficit-to-double-to-2-trillion-even-as-biden-boasts-deficit-cutting\/"},"modified":"2023-09-04T20:33:51","modified_gmt":"2023-09-05T00:33:51","slug":"federal-deficit-to-double-to-2-trillion-even-as-biden-boasts-deficit-cutting","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-deficit-to-double-to-2-trillion-even-as-biden-boasts-deficit-cutting\/","title":{"rendered":"Biden boasts deficit-cutting, but federal deficit set to double to $2 trillion."},"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\">24<\/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%2Ffederal-deficit-to-double-to-2-trillion-even-as-biden-boasts-deficit-cutting%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=2021740&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--><h2>President Biden \u200dTouts Deficit-Cutting, \u200dBut\u200c Experts \u200bWarn of Unprecedented Budget Deficit<\/h2>\n<p>As President Joe \u2064Biden on Monday touted his apparent deficit-cutting\u200d mettle, a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-deficit-to-double-to-2-trillion-even-as-biden-boasts-deficit-cutting\/\" title=\"Biden boasts deficit-cutting, but federal deficit set to double to  trillion.\">nonpartisan fiscal policy \u2063research group warned<\/a> of an &#8220;unprecedented&#8221; explosion in the federal budget deficit, which it said is \u2063on track to double to\u2064 $2 trillion this\u200b year.<\/p>\n<p>In a Labor Day speech in Philadelphia on\u200b Monday, President Biden\u2063 touted his economic policies while \u2062taking a series of jabs at his predecessor, President Donald Trump.<\/p>\n<blockquote>\n<p>\u201cUnlike the last \u2064president, in my \u200cfirst two\u200d years &#8230; I cut the deficit $1.7 trillion,&#8221; President \u2063Biden boasted.<\/p>\n<\/blockquote>\n<h3>Unmentioned Factors\u200b Behind the Deficit Drop<\/h3>\n<p>What President \u2062Biden failed to mention, however, is\u200c that\u2063 most of \u2063the\u2064 massive deficit\u200d drop in 2022 was a \u2062one-off, driven by what \u2063experts say was a one-time inflation-related explosion in tax revenue and capital gains.<\/p>\n<p>And while the \u2062president touted\u2062 his supposed deficit-slashing accolades, the Committee for\u200d a Responsible \u200bFederal \u2062Budget (CRFB), a nonpartisan organization that seeks to educate the public on issues with significant fiscal policy\u2062 impact, projected that the \u200bdeficit \u200bunder the president&#8217;s watch would double in 2023 to around $2 trillion.<\/p>\n<blockquote>\n<p>&#8220;Deficits \u2063are slated to double this year, from $1 trillion up to $2 trillion, when you exclude student debt cancellation,&#8221; CRFB senior\u2064 vice president Marc Goldwein said in a \u2064post on X, the\u200b platform formerly known as Twitter.<\/p>\n<\/blockquote>\n<p>&#8220;This is unprecedented given the economy,&#8221; Mr. Goldwein added, referring to the fact that it&#8217;s unusual for deficits to rise so sharply\u200b when\u2062 the economy\u2064 is doing relatively well.<\/p>\n<h2>Deficit\u200c 122 \u200cPercent Higher\u2063 so Far in 2023<\/h2>\n<p>After record government spending in \u20632020\u200d and 2021 in\u200d part to offset the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-mandates-for-increased-production-of-ethanol-are-wrong-headed\/\" title=\"Biden\u2019s Mandates for Increased Production of Ethanol Are Wrong-Headed\">negative economic impact<\/a> of \u200dthe COVID-19 pandemic, the federal budget deficit dropped by a record amount in 2022 from near $3 trillion to around \u200b$1 trillion.<\/p>\n<p>The Congressional Budget Office (CBO) said in March 2023 that the government took in $4.9 \u2063trillion in 2022, with more than half \u2062coming from receipts from individual income\u2063 taxes, which were the highest on record as a percentage of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japans-q2-gdp-beats-forecasts-as-exports-zoom\/\" title=\"Japan's Q2 GDP surpasses expectations with strong export growth.\">gross domestic \u2064product<\/a>.<\/p>\n<p>In February, the CBO \u200dprojected that the budget deficit for 2023 would rise to around $1.4 \u200btrillion, while projecting \u200bthat, in coming \u2063years, deficits would \u200cgradually rise each year, hitting $2.7\u200c trillion \u200din 2033.<\/p>\n<p>But the CRFB&#8217;s latest estimate shows that the pace of deficit spending under President Biden&#8217;s watch is rising\u2063 faster\u200b than CBO&#8217;s February projections and will hit $2 trillion this year.<\/p>\n<p>In a post on X, Mr. Goldwein\u2064 explained that the\u2062 2022 deficit decline \u200dcould be attributed\u200c to \u200ba one-time \u200crevenue\u2063 surge (&#8220;which is over&#8221;) as the economy bounced back from the pandemic,\u2062 rather than due to \u200bfactors that can be attributed to &#8220;Bidenomics.&#8221;<\/p>\n<p>He\u2063 added that what&#8217;s driving the CRFB&#8217;s projections for a doubling \u2063of the budget deficit is a combination of a rise \u2063in spending due to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-goodbye-tina-higher-yields-muddy-outlook-for-struggling-u-s-stocks\/\" title=\"Analysis-Goodbye, TINA: higher yields muddy outlook for struggling U.S. stocks\">soaring interest rates<\/a>, higher Social\u200c Security and Medicare costs, a lack of Federal \u200cReserve remittances to the\u2064 U.S. Treasury, and a &#8220;big&#8221; budget deal.<\/p>\n<p>In March,\u200d the CRFB warned that President Biden&#8217;s proposed budget for the\u2062 2024 fiscal year would send\u200d the national debt to a record high within four years.<\/p>\n<p>&#8220;Debt\u2062 under the President\u2019s budget would grow to a new record as a\u2062 share of the economy over the next decade,&#8221; the CRFB wrote in the\u2064 March 9 analysis.<\/p>\n<p>&#8220;It is disappointing that\u2064 the President continues\u2062 to propose trillions of\u200b dollars in new spending \u2062and tax breaks without a plan to\u200d put our debt \u200con a sustainable path,&#8221; the organization added.<\/p>\n<p>Separately, Treasury Department data shows \u2063the \u2064year-to-date deficit as of July stood at about $1.61 trillion, the\u2063 highest amount ever outside of the pandemic.<\/p>\n<p>&#8220;Compared to the \u200bnational deficit of $726 \u2062billion for the same period last year (Oct 2021\u2014Jul\u200b 2022), our\u200c national deficit has increased by\u200c $887 billion,&#8221; Treasury said in a statement, \u2062noting that the deficit was\u2064 122 percent higher \u200bso far this year compared to the\u200b same period last year.<\/p>\n<p>Overall, the national debt has increased by roughly $5 trillion since \u200bPresident Biden assumed office, from roughly\u2062 $27.8 \u2064trillion \u200dto \u200caround $32.8 trillion.<\/p>\n<h2>Deficit &#8216;Doom Loop&#8217;?<\/h2>\n<p>As\u200b the\u200c U.S.\u2064 central bank has raised its benchmark Fed \u200dFunds rate\u2063 rapidly in a feverish bid to\u2064 quash soaring inflation, interest payments on government debt have climbed, prompting warnings from \u200bprominent\u200d economists.<\/p>\n<p>Former Treasury Secretary Larry Summers said\u200d in a Bloomberg interview at \u2064the end of last year \u2063that fiscal debates need to be put &#8220;back on \u200dthe table&#8221; as \u200csurging borrowing co<\/p>\n","protected":false},"excerpt":{"rendered":"<p>a nonpartisan fiscal research group cautioned about an &#8220;unprecedented&#8221; surge in the federal budget deficit. It is projected to reach $2 trillion this year, doubling from previous levels. President Biden highlighted his economic strategies during a Labor Day speech in Philadelphia.<\/p>\n","protected":false},"author":118,"featured_media":2021741,"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":[543],"tags":[],"class_list":["post-2021740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"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\/2021740","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\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2021740"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021740\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2021741"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2021740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2021740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2021740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}