US Get Ready for Massive Budget Fights - The president wants to spend $7.3 trillion, or some $400 billion more than during the height of the pandemic

I haven’t had time to do a deep dive into the president’s budget yet. But a few things have caught my attention. Dominic Pino is right that this plan is DOA. Still, the budget blueprint is a window into the utter irresponsibility of this administration, even though the budget claims to exhibit a “commitment to fiscal responsibility.”

The president wants to spend $7.3 trillion, or some $400 billion more than during the height of the pandemic. As a point of reference, after the Great Recession, President Obama kept the budget relatively flat for the five years following the recession. By 2015, he had more than cut in half the deficit from the height of the recession. No such luck here. Deficits are staying large.

Also, by 2034, mandatory spending will be $8.3 trillion and consume 80 percent of the budget. That leaves 20 percent for Congress to oversee annually. Do you think the budget fights that everyone claims to hate so much will intensify or moderate? I think you should get used to threats of government shutdowns, budget and debt-ceiling fights, and more, because as mandatory spending grows, passing a budget will be as pleasant as feeding a bunch of hungry dogs from a constantly shrinking plate of food.

Finally, not all taxes are created equal, and the president likes his extra bad (see this useful Tax Foundation chart). He wants to raise the corporate income tax rate from 21 to 28 percent. As it turns out, the corporate income tax is one of the most distortive taxes we have. Here is what the Tax Foundation writes:

Corporate income taxes are taxes on business profits earned by C corporations. The corporate income tax directly increases the cost of making investments in capital, like machinery and equipment, which businesses and workers use to be more productive. When businesses and workers are more productive, the economy grows. So, by increasing the cost of making investments, the corporate income tax discourages investment and productivity growth, creating one of the largest negative impacts on economic growth compared to other taxes.

In addition, if he does get his wish and raises the corporate-income-tax rate, he won’t raise the revenue he hopes to raise, and whatever he gets could eventually be shouldered by workers in the form of lower wages. The same can be said for the rest of his capital-income-taxing agenda.

Another point: After ten years, the president claims he will have increased spending by $4.4 trillion on top of its fiscal year 2024 level and raised revenue by an addition $5.1 trillion annually. Don’t buy it. The document is packed with budget gimmicks and tricks to make things look better than they are. The bottom line is that revenue won’t grow as much as projected, and spending will likely grow more than projected.

The whole thing is a bummer.
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[AnotherPleb]

At this point do the zeroes on the budget matter any more?

 

[quaawaa]

Can anyone name a single thing we get in return for these trillions of dollars?

I bet you that whatever comes to mind is actually paid for by state, local, or use taxes.

 

[Agent of Z.O.G.]

Can anyone name a single thing we get in return for these trillions of dollars?

I bet you that whatever comes to mind is actually paid for by state, local, or use taxes.

Funding for my NGO (You Gib Me Dat Foundation)

 

[Lone MacReady II]

Only thing that matters to the Turd World imports unquestioning new Americandans.

Until Rothschild Kikery is removed from the Shekel Sideshow, America and it's currency will never be free. I won't say Money because America hasn't had tangible money since 1971 and removal from Gold-backing. Even 25+ years prior to that the currency was slowly being Kiked to death following the wrong side winning WWII. And before that, the unconstitutional fiat printing house known as the FED was still helping to make your ancesters poorer in their homeland.

 

[World Famous Quasi Payer]

Their just throwing money at people at this point. Polling must be atrocious for them if their going full out like this.

 

[Kheapathic]

At this point do the zeroes on the budget matter any more?

The only thing I can see (my money handling experience is working a fast food register) is that eventually, when enough zeroes happen and the Federal Reserve owners say that's enough, they call their tab, and deliver the killing blow. I imagine the credit rating agencies will have to downgrade us a few times before then, but outside of that, the zeroes don't mean anything, it's all fake.

Can anyone name a single thing we get in return for these trillions of dollars?

Higher prices and more lies about how great everything is... what do you mean you're not happy to hear that?

 

[Agamemnon Busmalis]

25 years ago we had a surplus. It is incredible how quickly a succession of shitty leaders with too much power can run a country into the ground.

 

[Breadbassket]

Who needed a balanced budget anyway?

 

[spinal gas chamber]

This is excellent. In 2023 a Google told me estimated (lol at that - SOX requires correctness from the private sector but not the feds) tax revenue was $4.7 trillion. So do we target that as the spending ceiling? Nah, fuck it. Gibs dem dat!