US treasury pushes back as budget office warns Biden’s bill will swell deficit – as it happened

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The non-partisan Congressional Budget Office is saying contrary to the President Biden’s
pledge that the Build Back Better climate change and social policy package would pay for itself, the plan
would net increase in the federal deficit by $160 billion during the period from 2022-2031, which is not
counting any additional revenue generated by increase tax enforcement.
The budget office’s analysis found that the bill’s tax cuts and spending programs were almost balanced
by new revenue and spending cuts. The package will be fully paid for with tax increases on high earners
and corporations, which would rise $1.5 trillion over the decade. Savings in government spending on
prescription drugs will approximately brings another $260 billion.
There are some conflicts between CBO and White House numbers on how much the deficit the IRS
would make up by cracking down on big tax dodgers.
While CBO estimates that IRS proposal would raise less than what the White House was counting on
the help pay for its bill – about $120 billion over a decade versus the $400 billion additional revenue that
the treasury estimated.
In spite of this movement in the House, though there are no assurances about the bill’s future in the
Senate. Because moderate senators including Machin and Kyrsten Sinema (D-AZ) haven’t clearly said
they’re supporting the legistation yet, it’s possible the bill may see important changes before becoming
law.
However, The House is scheduled to vote on the $2 trillion Build Back Better bill Friday evening.

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