US President Joe Biden noted that his first-year budget deficit was reduced by more than $350 billion.
U.S. President Joe Biden is touting his administration’s efforts to reduce the state’s budget deficit, trying to contrast with Republicans who oversaw the growing deficit before he took power.
In a preview of what could be a midterm campaign speech, Biden on Wednesday explicitly took aim at his so-called “MAGA” Republicans, whom he accuses of protecting billionaires at the expense of America’s working class, while only paying attention to the budget deficit lie.
MAGA references 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, which some critics say is due to Washington overspending amid the COVID-19 pandemic and tight global supplies.
Biden noted on Wednesday that annual deficits are falling — thanks to rising incomes as the economy recovers from the pandemic and COVID-19 emergency spending cuts — which under his predecessor Donald Trump has grown from Never happened.
“The bottom line is that under my predecessor, the deficit was increasing every year before and during the pandemic,” Biden said.
The US has reported a budget deficit every year since 2001. Beginning in 2016, increases in Social Security, health care and interest payments on federal debt outpaced increases in federal revenue.
Over the past few years, the annual deficit has ballooned to about $3 trillion due to pandemic spending and lost revenue. In 2017, Republicans under Trump introduced a massive tax cut bill that is estimated to have added more than $1 trillion to the debt.
“The last administration was increasing the deficit every year, in part because of its reckless $2 trillion in tax cuts. Know you’re tired of hearing me say that, but didn’t pay the $2 trillion in tax cuts,” Biden said.
Trump supporters point to record unemployment in the economy under Trump and record highs for the stock market.
Biden noted that his first-year budget deficit shrunk by more than $350 billion, while new U.S. Treasury estimates show more than $1.5 trillion this year, the largest single-year deficit reduction on record, and from that. The president’s budget, released earlier this year, is expected to hit $1.3 trillion, one official said.
The U.S. Treasury also estimates that it will pay off 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 U.S. Democratic Sen. Joe Manchin has effectively blocked it, citing spending concerns.
Biden took aim at Republican U.S. Senator Rick Scott’s economic plan, which he said would raise taxes on 75 million Americans without affecting the wealthy. Scott is leading the GOP effort to get Republicans elected to the Senate.
“It’s extreme, like most MAGAs,” Biden said.
Scott’s campaign did not immediately respond to a request for comment.