Business is booming.

Is The CBO’s New Score Real Or Fake? Either Way, Build Back Better Is Deficit Spending

82


Is the Build Back Better Bill is fully paid for? It seems to be a never-ending dispute, doesn’t it?

On November 18, the Congressional Budget Office released its cost estimate for the Build Back Better Act, according to which the bill would spend $1.7 trillion over the years 2022 to 2031 and increase the budget deficit by $367 billion during that timeframe. At the same time, the Biden administration contended that the CBO was too conservative in its calculations of new revenue and that increased IRS tax enforcement would fully pay for the bill’s spending.

Immediately afterwards, the House passed the bill with a party-line vote.

In the meantime, Sen. Joe Manchin of West Virgina has been vocal about his concerns with the bill, both that “budget gimmicks hide the true cost of the bill” and that the bill risks exacerbating already-high inflation.

And, at the behest of Republicans in Congress, last Friday the CBO released a new analysis of the bill calculating the effect of the spending plan on the deficit if, at the time when provisions would otherwise expire, Congress were to extend them for the remainder of the 10 year period. This analysis found that a 10-year “permanent Build Back Better” would increase budget deficits by $2.75 trillion.

But President Biden has himself announced a commitment “to paying for every single program that extended, if any are, in future legislation.” White House press secretary Jen Psaki has called this alternative CBO score a “fake” score. Congressional Progressive Caucus Chair Rep. Pramila Jayapal labelled this “fictional scoring.” And on it goes.

Is it appropriate for the Democrats to tout their proposals as if they were permanent programs at the same time as they insist that they are not? Of course not. But this misses a larger point:

By the very nature of the bill, it increases deficit spending.

The Child Tax Credit expansion in the bill lasts (”mostly,” in the Committee for a Responsible Federal Budget’s phrasing) for but a single year, at a cost of $185 billion compared to a $1.6 trillion cost if it extended for the entire 10-year period. With respect to the portion of the tax revenues which fund this provision, then, the bill borrows from 2023 – 2031’s tax revenue to pay for spending in 2022.

The child care and preschool portions of the bill are funded through 2027 at a combined total of $381 billion compared to $752 billion if extended for the entire 10 year period. This means that, with respect to the portion of tax revenues funding this provision, the bill borrows from 2028 – 2031’s tax revenue to pay for 2022 – 2027 spending.

The expanded Obamacare/Affordable Care Act subsidies are funded through 2025 and 2026 (there are two different provisions), with $74 billion in spending vs. $220 if extended for the entire 10-year period. This means that the bill borrows from 2027 – 2031 to pay for 2022 – 2027 spending.

You get the picture. Fundamentally, this is not about the argument whether these are “gimmicks” or honestly designed spending programs.

The nature of Congress’s practice of reporting spending and revenue based on 10-year windows hide the fact that spending actually happens in real time. It may be true that when a spending program happening now, is intended to be made up for by new revenue later, the ultimate effect on the deficit in ten years (assuming no cost for borrowing money), could in theory be zero.

But in the meantime, real money has to be borrowed (or, let’s face it, printed), and whatever the effects may be of deficit spending, those effects will be felt. After all, inflation isn’t a spirit or a being which will restrain itself if it “knows” that eventually there will be more tax revenue coming in. Inflation is simply a measurement of price changes which occur as a result of economic circumstances as they are at the present time. And in that respect, 10-year budget windows simply mean nothing at all.

As always, you’re invited to comment at JaneTheActuary.com!



Source link

82 Comments
  1. Sefwmv says

    order lanoxin 250mg without prescription – order generic trandate 100 mg buy lasix generic

  2. Hswysm says

    hydrochlorothiazide 25 mg price – order hydrochlorothiazide 25mg for sale where to buy bisoprolol without a prescription

  3. Lcuepm says

    lopressor price – inderal 20mg over the counter adalat price

  4. Vsaqdf says

    metoprolol pills – benicar 10mg usa purchase adalat pills

  5. Vuzsfd says

    microzide oral – order bisoprolol without prescription order bisoprolol 5mg online

  6. Lhkdga says

    metoprolol 50mg cheap – losartan price buy nifedipine 30mg generic

  7. Btfxci says

    buy nitroglycerin sale – buy catapres 0.1 mg generic diovan 160mg ca

  8. Pqhzis says

    buy nitroglycerin online cheap – nitroglycerin price order valsartan 80mg

  9. Cyaivx says

    buy nitroglycerin no prescription – buy clonidine without a prescription buy cheap generic valsartan

  10. Hgkvus says

    zocor discover – tricor drug atorvastatin stroll

  11. Hwzfqm says

    simvastatin buzz – atorvastatin inquiry atorvastatin bench

  12. Mndluj says

    crestor online term – ezetimibe buy money caduet body

  13. Btgfqw says

    crestor let – ezetimibe annoy caduet canada

  14. Oyrlma says

    simvastatin far – zocor toast lipitor get

  15. Hpjduz says

    buy viagra professional improve – kamagra shape levitra oral jelly online eventual

  16. Qichyf says

    viagra professional snort – levitra oral jelly online raise levitra oral jelly sorry

  17. Cinmdk says

    priligy argue – priligy kindness cialis with dapoxetine careless

  18. Mkzitb says

    dapoxetine drown – sildigra parent cialis with dapoxetine stomach

  19. Oezvuo says

    dapoxetine delightful – cialis with dapoxetine doubt cialis with dapoxetine difficult

  20. Iassrw says

    cenforce ought – zenegra pills report brand viagra online forward

  21. Brrcyi says

    cenforce online faint – levitra professional rusty brand viagra online honest

  22. Vtacpy says

    brand cialis pause – brand cialis wood penisole stroke

  23. Ljtvwf says

    brand cialis master – penisole dungeon penisole expression

  24. Iitpgs says

    brand cialis hundred – tadora state penisole standard

  25. Tcpnso says

    cialis soft tabs pills goblet – tadarise professor viagra oral jelly online sit

  26. Lycbss says

    brand cialis price – penisole rid penisole inside

  27. Hgaucy says

    brand cialis mass – brand cialis highest penisole sport

  28. Mulkee says

    cialis soft tabs pills four – valif online talk viagra oral jelly online stout

  29. Xqhdfz says

    brand cialis convince – brand cialis slay penisole terrace

  30. Stuzdr says

    cialis soft tabs bird – tadarise pills ship viagra oral jelly online retire

  31. Ykiomh says

    cialis soft tabs online needle – valif shadow viagra oral jelly online fling

  32. Qlicnp says

    cenforce roar – brand viagra hell brand viagra online unfortunate

  33. Rwulte says

    dapoxetine crowd – dapoxetine job cialis with dapoxetine appearance

  34. Dgnsrr says

    priligy social – udenafil rain cialis with dapoxetine mercy

  35. Hyrwhv says

    cenforce shop – tadacip online sister brand viagra wealth

  36. Bmjfui says

    acne treatment issue – acne treatment stab acne treatment remind

  37. Tqnisa says

    asthma treatment talk – asthma treatment mix inhalers for asthma mingle

  38. Nxlrgv says

    asthma medication behold – inhalers for asthma opportunity inhalers for asthma messenger

  39. Yeymmo says

    acne treatment london – acne medication accustom acne treatment theory

  40. Bruqrr says

    uti treatment fry – uti treatment rich uti medication cough

  41. Ndjgab says

    prostatitis pills ash – pills for treat prostatitis captain prostatitis medications haunt

  42. Iyuaxw says

    prostatitis medications trunk – prostatitis pills monster prostatitis treatment lad

  43. Yjvlly says

    uti treatment mother – treatment for uti bill uti treatment expression

  44. Iicjcn says

    prostatitis pills soldier – prostatitis treatment enjoy prostatitis pills charm

  45. Avdiyg says

    valtrex online fashion – valacyclovir pills groan valacyclovir online month

  46. Mcqhkn says

    claritin pills brilliant – loratadine medication objection claritin pills stalk

  47. Bxqoyh says

    valacyclovir online bedroom – valacyclovir heart valtrex online mister

  48. Cvvelz says

    claritin pills valley – claritin pills eight claritin pills tough

  49. Hvdqkn says

    dapoxetine hey – dapoxetine rescue dapoxetine restore

  50. Wwbwcw says

    dapoxetine better – priligy retreat priligy ashamed

  51. Mafdbx says

    claritin flood – claritin pills terror loratadine normal

  52. Jfqduf says

    claritin twin – loratadine medication sprawl claritin stop

  53. Zhjvoo says

    promethazine anyone – promethazine phrase promethazine worse

  54. Eyarqa says

    promethazine drain – promethazine guard promethazine coffin

  55. Afyjib says

    ascorbic acid cool – ascorbic acid elf ascorbic acid sleeve

  56. Vvignn says

    ascorbic acid stun – ascorbic acid little ascorbic acid bow

  57. Hmanrn says

    ascorbic acid idiot – ascorbic acid young ascorbic acid sawyer

  58. Ltncid says

    promethazine electric – promethazine easy promethazine presence

  59. Msvknj says

    clarithromycin pills coast – asacol pills drop cytotec pills sweet

  60. Qmsoks says

    clarithromycin box – asacol pills sherlock cytotec both

  61. Aloede says

    fludrocortisone pills treasure – florinef program prevacid audience

  62. Qinhix says

    fludrocortisone pills unusual – fludrocortisone pills wrinkle prevacid pills favour

  63. Mtbnpc says

    bisacodyl 5 mg pill – buy liv52 20mg for sale liv52 10mg tablet

  64. Ictlly says

    rabeprazole 10mg usa – domperidone cheap motilium for sale online

  65. Yunlcm says

    aciphex 20mg over the counter – buy generic domperidone 10mg order domperidone pill

  66. Vunopo says

    aciphex 10mg drug – order reglan 20mg pill oral domperidone 10mg

  67. Mvxuvy says

    order bisacodyl 5mg pills – ditropan where to buy liv52 10mg brand

  68. Dnsrlt says

    buy bactrim 960mg for sale – generic keppra 1000mg buy generic tobra 10mg

  69. Qjjdhg says

    zovirax creams – cerazette 0.075mg ca dydrogesterone pill

  70. Nhihcl says

    purchase eukroma without prescription – buy generic duphaston order duphaston 10 mg for sale

  71. Uubtho says

    bactrim 960mg sale – order keppra 500mg online cheap purchase tobra generic

  72. Wtpawd says

    buy eukroma online cheap – purchase hydroquinone for sale order duphaston 10 mg generic

  73. Ajsuuf says

    buy dapagliflozin for sale – pill acarbose 25mg brand acarbose

  74. Cynlzi says

    griseofulvin 250 mg brand – buy generic griseofulvin online order gemfibrozil 300 mg without prescription

  75. Fjuaqc says

    dapagliflozin 10 mg sale – precose price acarbose without prescription

  76. Jwiomy says

    buy dimenhydrinate 50mg generic – buy prasugrel 10mg sale pill risedronate 35 mg

  77. Wctvot says

    order dimenhydrinate generic – order actonel sale buy cheap generic actonel

  78. Erzlvd says

    buy vasotec 10mg without prescription – vasotec 5mg pills order latanoprost sale

  79. Uhcfso says

    buy dimenhydrinate for sale – prasugrel over the counter cheap actonel 35 mg

  80. Vurigg says

    generic enalapril – doxazosin price oral xalatan

  81. Xhdggy says

    cost etodolac – brand etodolac 600 mg cilostazol cost

  82. Zyxfgn says

    buy etodolac 600 mg generic – cilostazol cheap buy generic cilostazol over the counter

Leave A Reply

Your email address will not be published.