In the US, the neutral Congressional Budget Office (CBO) noted that the economic package signed by President Joe Biden did not include tax increases enough to cover its own costs.
CBO’s statement points to the opposite of the White House’s claims and may be enough to collapse the bill. The CBO determined that the bill sent to the House of Representatives on Thursday includes $1.626 trillion on spending for the ten years while projecting revenue of $1.269 trillion. According to these calculations, the budget deficit of the USA will increase by 367 billion dollars in the next ten years.
Members of the House of Representatives were insisting on seeing the numbers before Congress passed the bill. However, according to calculations by the White House, the bill shows a $112.5 billion reduction in the budget deficit when revenue from tighter tax enforcement is included.
But this figure, the CBO found, will strengthen the hand of Republicans who oppose the bill, saying it will increase inflation, slow job growth, and increase dependency on the government, as well as increase the national debt.
While the White House estimates that increasing the number of enforcement officers in the Internal Revenue Service will result in a $400 billion increase in revenues, the CBO disagrees.