The White House issued President Biden’s $6 trillion budget request for the fiscal year starting Oct. 1, 2022, on Friday, arguing that such record spending is necessary to secure a long-term recovery and maintain American prosperity in the aftermath of the coronavirus outbreak.
- As per Biden’s $6 trillion budget, the White House anticipates the $2.2 trillion American Employment Plan will add $529 billion to the federal deficit over the next decade, after $1.7 trillion in income from tax increases, largely on businesses.
- The American Jobs Plan would spend $565 billion over the next decade on research and development, manufacturing, and job training; $546 billion on modernizing transport infrastructure; and $308 billion on access to clean water, the electricity grid, and broadband, according to Biden’s $6 trillion budget
- The Biden Administration anticipates that the $1.8 trillion American Families Plan will add a net $270 billion to the deficit over the next decade, after accounting for $1.5 trillion in additional revenue from tax increases, loophole closures, and enhanced IRS enforcement, all of which are targeted at the wealthy
- The White House proposes to spend $437 billion over the next decade on 4 years of free schooling, $498 billion on families and children (including through childcare programs and universal family and medical leave), and $449 billion to extend the expanded Child Tax Credit temporarily as a component of the American Families Plan
- The White House has said that both programs would pay for themselves within fifteen years as a result of the tax increases contained in each.
- Additionally, the budget authorizes $16.8 trillion in discretionary expenditures over the next decade, including $8.2 trillion for the military.
According to the White House, the nation’s Gross Domestic Product would expand at a 3.2 percent rate in 2022 before slowing to 1.8 percent in 2024 and remaining there through 2027. It anticipates a GDP growth of 2% in 2030. However, those are base-case predictions that exclude the effects of the American Families and American Jobs initiatives, though they do factor in an increase in interest rates when the economy improves.