Analysis of Debt Projection and Spending Policies Under Biden Administration

A recent analysis examines the projection of debt and spending policies under the Biden administration. During Thursday’s presidential debate, President Biden accused his predecessor, Donald Trump, of adding more to the federal debt than anyone else. Debate moderator Jake Tapper also made claims about Trump’s approved debt. The analysis questions the accuracy of these statements.

The analysis highlights the left-leaning Committee for a Responsible Federal Budget (CRFB) as the source of the debt statistics referenced by Tapper. The CRFB is criticized for its partisan stance and opposition to Trump’s tax reform in 2017 while supporting Biden’s spending bills.

To provide a more comprehensive perspective, the analysis compares the projections of the Congressional Budget Office (CBO). The CBO projected the federal debt to reach approximately $35.3 trillion by 2031 during the last fiscal year of the Trump administration. However, the latest estimates from the CBO now project the debt to exceed $42.5 trillion by 2031, attributing the increase to Biden’s spending policies.

Treasury Department figures also indicate a faster growth of debt under the Biden administration. While Trump’s term saw a debt increase of $7.7 trillion, including emergency COVID spending, a portion of this increase was due to Treasury’s decision to keep additional cash on hand during the pandemic. In contrast, Biden spent the reserve and borrowed an additional $7 trillion, leading to a net increase in debt of $7.9 trillion in less than four years.

The analysis further highlights the Treasury’s announcement of the need to borrow an additional $800 billion from July through September, with further borrowing anticipated in the following months. Overall, it is projected that Biden’s tenure will witness a net increase in debt of over $9 trillion, setting a new record.

The analysis also challenges Biden’s claim that extending Trump’s tax reform will contribute to excessive debt. It points out that federal tax revenues have increased since the tax reform was enacted, and federal revenues as a share of GDP have not fallen. The increase in debt is primarily attributed to extensive federal spending by both parties.

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