Nov 18, 2021, 05:57pm
The Democrats' social spending proposal would add about $367 billion to the nation's budget deficit over the next decade, falling short of their claims that it would pay for itself, according to the Congressional Budget Office.
Nancy Pelosi promised to move the bill to a vote as soon as possible.
The images are from the same company.
The CBO said Thursday that the act would increase the budget deficit by about $367 billion.
The CBO projected that tax enforcement activities would reduce the deficit by only $207 billion over the next 10 years, which is less than the $400 billion estimate from the White House.
The final vote on the bill could be held as soon as Thursday, when the final budget estimates from the CBO are released, according to Nancy Pelosi.
It's not clear if it will be a dealbreaker for House Democrats, since Rep. Kurt Schrader said this week he wouldn't be voting for the bill.
Senate Finance Chair Ron Wyden said in a statement that he was confident that the Treasury's estimate that investing in the IRS will generate at least $400 billion in additional tax revenue was correct.
The new report comes after a nonpartisan analysis released earlier this month by the Joint Committee on Taxation estimated the plan's proposed new taxes would raise about 1.5 trillion in revenue, falling short of the bill's total price tag although it didn't account for tax enforcement provisions.
Democratic leaders have struggled to advance President Joe Biden's plan due to opposition from spending-wary moderates. The plan went through a round of massive cost cuts last month in an attempt to appease Sen. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.), who have cited inflationary. The letter to Pelosi from the five moderate House Democrats was sent in order to get Pelosi to support the spending package. Manchin asked the same thing.
There was aContra.
Democratic party leaders have begun to promote their proposal because of the high inflation rates and the fact that it would pay for itself and help cool rising places. Want to fight inflation? Chuck Schumer said Tuesday that the plan would lower the cost of expenses like housing, childcare and prescription drugs through subsidies and public housing provisions. Some economists have suggested the opposite. Doug Elmendorf, a public policy professor at Harvard University, said during a webinars Wednesday that the bill goes the wrong way in the short term.
What to watch for.
The bill will face scrutiny in the Senate even if it makes it past the lower chamber. Manchin and Sinema have dodged questions about their support for the plan, with Manchin most recently saying Democrats must allow time for complete transparency and analysis before moving it forward.
There is a structure called the Tangent.
The recently passed bipartisan infrastructure package would add an estimated $256 billion to the budget deficit over the next 10 years according to the CBO. One of the largest infrastructure bills in U.S. history was signed into law by Biden on Monday.
The number is big.
$35 trillion. CBO projects the nation's debt will increase in the next 10 years. The national debt has been lifted from $23 trillion at the end of the year to $29 trillion today by unprecedented government spending.
After $2 trillion in cuts, Biden has a new proposal for social spending.
The Democrats' bill has a lot of new taxes.
