Biden touts falling US budget deficit, attacks Republicans

US president charges the party with protecting billionaires at the expense of working class Americans

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AFP

By Reuters

Published: Wed 4 May 2022, 8:52 PM

US President Joe Biden Wednesday touted his administration’s efforts at reducing the nation’s budget deficit, seeking to draw a contrast with Republicans who oversaw growing deficits before he took control.

In what could be a preview of a midterm stump speech, Biden took clear aim at what he dubbed “MAGA” Republicans who he charged with protecting billionaires at the expense of working class Americans while only paying lip-service to budget deficits.

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MAGA is a reference to former President Donald Trump’s slogan “Make America Great Again.”

Biden and his fellow Democrats have come under fire from Republicans for a historic rise in inflation that some critics say stems from overspending in Washington amid the Covid-19 pandemic as well as global supply constraints.

Biden noted on Wednesday that the annual deficit is going down - thanks to increased revenue as the economy emerges from the pandemic and winding down of Covid emergency spending - something that never happened under his predecessor, Donald Trump.

“The bottom line is the deficit was going up every year under my predecessor before the pandemic and during the pandemic,” Biden said.

The United States has reported budget deficits every year since 2001. Beginning in 2016, increases in spending on Social Security, healthcare and interest on federal debt have outpaced the growth of federal revenue.

In the past few years, the annual deficit has ballooned to around $3 trillion due to pandemic spending and loss of revenue. In 2017, Republicans ushered in a massive tax-cut bill under former President Donald Trump that by some estimates has added more than $1 trillion to the debt.

“The previous administration increased the deficit every year it was an office in part because of its reckless $2 trillion tax cut. Know you’re tired of hearing me saying that but a $2-trillion tax cut that was not paid for,” Biden said.

Supporters of Trump have noted that the economy under Trump saw historically low unemployment coupled with record highs in the stock market.

Biden noted that the budget deficit fell by more than $350 billion in his first year and that new U.S. Treasury estimates showed it would fall by more than $1.5 trillion this year — the largest deficit reduction in a single year on record and a revision up from the $1.3 trillion projected in the president’s budget released earlier this year, the official said.

The Treasury Department also estimates that it will pay down the national debt this quarter for the first time since 2016.

Biden is still seeking a nearly $2-trillion bill to expand the social safety net and tackle climate change, but Democratic U.S. Senator Joe Manchin has effectively blocked it, citing spending concerns.

Biden took aim at Republican U.S. Senator Rick Scott’s economic plan, saying it would raise taxes on 75 million Americans while leaving the nation’s wealthy untouched. Scott is leading Republican efforts to get Republicans elected to the Senate.

“It’s extreme, as most MAGA things are,” Biden said.

Scott’s campaign staff didn’t immediately respond to requests for comment.

Reuters

Published: Wed 4 May 2022, 8:52 PM

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