(Daily360.com) The Congressional Budget Office has increased expected spending projections by $3.4 trillion from 2024 to 2034. Over half of the increase is attributable to Medicare and Social Security. Those two programs along with interest on the national debt will account for 68% of projected federal spending in 2034.
A May report found that interest payments on the national debt have surpassed defense spending for the current fiscal year. As of the report, $514 billion has been spent on interest compared to $498 billion on defense. Medicare expenses were $465 billion so far at the time of the report while Medicaid cost $355 billion during the same time period.
Another significant contributor in spending increases is the new proposal by the Biden administration regarding student loan debt. This equates to $145 billion and is the biggest budget increase for the current fiscal year. Biden announced restructuring of student loan payment plans as well as a forgiveness program.
The report also indicates that the increase of illegal immigration will lower the deficit by $900 billion between 2024 and 2034. The explanation is that the immigrants authorized to work will be paying taxes while all immigrants will contribute to an increase in economic activity.
The White House’s statement from May regarding the budget for fiscal year 2025 says that Biden’s administration has decreased the deficit by $1 trillion since he took office in 2021. The Biden administration, in the statement, boasts about their tax increases on corporations and pharmaceutical companies. The White House also focused on the Biden administration’s attempts to close tax loopholes for the wealthiest billionaires in the country.
The Biden administration also celebrated the various ways they are investing in Americans through programs while collecting more tax dollars from wealthy individuals and corporations. This includes tax cuts for “working class families” and reduction in housing costs. Biden and his administration have not yet responded to the latest projections by the Congressional Budget Office.
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