On Friday, the White House had revealed an eye-propping $6 trillion budget proposal for fiscal 2022 which in effect would shore up expenses on infrastructure, education and climate change battle, reaffirming a Biden Administration bid that it would be wise to invest when money is cheap with borrowing costs hovering close to a near-zero level.
Nonetheless, the first comprehensive US budget from a Biden Administration had met with steep opposition from the Republicans, who were reportedly seeking to downsize Government spending while rejecting the US president Joe Biden’s plan to hike corporate taxes to 28 per cent for domestic earnings from a prior 21 per cent.
White house unveils $6 trillion budget proposal, projects a $1.84 trillion deficit
In tandem, according to the Biden Administration’s proposed budgetary plan for fiscal 2022, the White House sought $6.01 trillion in expenses and expected to gain roughly $4.17 trillion in revenues, marking up a 36.6 per cent rise in lay offs compared to 2019 spending, while the budgetary proposal had estimated a $1.84 trillion in deficits, a sweeping drawdown from past two years as pandemic-led costs were trimmed, however, still stayed much higher than a 2019 deficit of $984 billion.
On top of that, the White House was quoted saying that the US President Joe Biden’s $6 trillion budget would address a swathe of issues entirely contrary to Trump Administration policies including an increase in spending to cushion up a historic US inequality that saw a near-extinction of middle-class Americans, while Biden’s budget proposal would also step up spending to battle climate changes while proffering four more years of free public education.
Meanwhile, adding that the US Government has been prepared to live with a trillion-dollar budget deficit amid a multi-year low interest rates that could yield a substantial scale of investments into the US economy, the Chair of Biden’s Council of Economic Advisor, Cecilia Rouse said following the announcement, “That is a sharp departure from unpaid tax cuts under the prior administration that seriously worsened our long-term fiscal problem.
The most important test of our fiscal health is real interest payments on the debt. That’s what tells us whether debt is burdening our economy and crowding out other investments. ”