The annual federal budget covers three spending areas: discretionary spending (the portion of spending Congress appropriates annually, which accounts for around 1/3 of the federal budget), interest on the debt, and mandatory spending (funding for Social Security, Medicare, veterans benefits, and other spending required by law). Mandatory spending is the vast majority of the federal budget, and it is on autopilot absent changes to the entitlement programs. These two categories account for about 70 percent of the total budget, and it is the very reason why the debt continues to increase rapidly. Healthcare entitlements associated with Obamacare, Medicare and Medicaid are the big drivers of the cost increases on the mandatory spending side.
This week, President Biden submitted his fiscal year (FY) 2023 budget request to Congress, and the major spending increases proposed for non-defense discretionary programs are dead on arrival. Those spending levels may pass in the Democrat majority House, but they are not going to pass in a Senate that requires Republican votes to get to the 60 votes needed to end debate.
The Biden Budget Impact on Spending & Inflation
Following Democrats’ reckless spending the past two years, inflation has now soared to a 40-year high. Across the country, American families are facing the burden of this new hidden tax on virtually everything they buy from groceries to gasoline. Just this week, Bloomberg reported the average U.S. household faces $5,200 in additional costs due to rising prices.
The Biden Budget doubles down and proposes $73 trillion in government spending over the next ten years – the highest sustained government spending in American history. This would lead to a $12,000 annual inflation tax paid by American families.
The Biden Budget Impact on Debt & Taxes
The Biden Budget would add $16 trillion in new public debt – total debt would reach $45 trillion by the year 2032.
President Biden’s budget calls for $2.5 trillion in new taxes or increased taxes.
These tax hikes will weaken our economy and burden local businesses and the hard-working Americans they employ.
The Biden Budget Impact on American Energy & the Border Crisis
The Biden Budget continues this Administration's war against American energy. This budget blueprint adds $45 billion in new taxes on domestic energy production, but makes no plan for new domestic oil and natural gas leases or expediting pipeline construction. This is exactly how you lose energy dominance and increase dependency on foreign adversaries.
As the border crisis worsens, the President's budget proposal advocates for even more open-door immigration policies. It cuts funding to Homeland Security and U.S. Immigration and Customs Enforcement, continues catch-and-release, and fails to enforce the "Remain in Mexico" policy. Additionally, there's no plan in the budget to spend the $1.9 billion for border wall construction that Republicans were able to get included in the FY22 omnibus appropriations bill. (The 60 vote threshold in the Senate gave us leverage to get this included.)