CBO Report Exposes How Democrats Made A Bad Budget Situation Worse

The Congressional Budget Office demolished lies about the nation’s fiscal health that Biden tried to peddle in his State of the Union address.

n Wednesday, the Congressional Budget Office (CBO) released its annual analysis of the budget and economic outlook over the coming decade. For anyone with a realistic sense of budgets and fiscal responsibility (i.e., not most Democrats), the lengthy document made for bracing reading.

As bad as you think the budget situation is, CBO noted that in the past year, it has gotten much worse. And if Democrats have their way when it comes to fiscal policy, things will still somehow worsen.

Spending Blowouts Increase the Deficit

CBO demolished two fictions that President Biden tried to peddle in his State of the Union address regarding the nation’s fiscal standing. In his speech, Biden claimed that deficits have gone down under his watch — a claim based largely on the fact that members of his own party rejected the full $5 trillion Build Back Bankrupt spending blowout he proposed.

Nevertheless, CBO estimated that the federal deficit would increase by $34 billion this year compared to last year. The budget office also noted that the deficit increase this year “would be larger if not for a shift in the timing of certain payments,” as some payments will get shifted because this fiscal year ends on a Saturday.

Over the longer term, Appendix A at the end of the report demonstrated how badly the nation’s financial standing has deteriorated under this president. Specifically, the estimated 10-year deficit has increased by $3.1 trillion, or nearly 20 percent, just since last May. Most of the increase stems from two sources.

Legislative changes accounted for a net increase in the deficit of nearly $1.5 trillion. The “burn pit bill” providing new benefits to veterans — which was not paid for — plus Democrats’ partisan reconciliation bill and last December’s omnibus spending bill blowout collectively account for the vast share of this deficit increase.

Economic changes account for another nearly $1.2 trillion of the deficit increase. Higher inflation will generate more than $900 billion in new revenue as individuals and corporations get pushed into higher tax brackets — but inflation will also cause $2.1 trillion in additional spending on higher Social Security benefits, Medicare and Medicaid benefits, federal pensions, and other similar programs, more than wiping out any budgetary savings from the increase in tax revenue. In other words, thanks to spending by congressional Democrats and loose monetary policies by the Federal Reserve over the last several years, the American people will suffer both higher taxes and higher deficits.

Biden claimed in his speech to Congress that his budget, due for public release on March 9, “is going to cut the deficit by … $2 trillion.” The CBO report demonstrated how such an amount of deficit reduction wouldn’t even undo the deterioration of the country’s fiscal position over the past nine months, let alone the...

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