In a recent article published by The Epoch Times, the author analyzes President Joe Biden’s federal budget proposal and compares it to the average American household budget. The author argues that while the large dollar amounts in Biden’s budget may seem daunting, it is important to understand the implications of these figures on everyday Americans.
According to the author, Biden’s budget proposes trillions of dollars in increased spending, which would lead to a significant increase in the federal debt over the next decade. However, the author points out that these figures may not resonate with ordinary Americans, whose incomes and debts are typically much smaller. To provide a clearer picture, the author breaks down Biden’s budget to the household level.
Based on the median household income of $77,750 in 2023, if the average household budgeted like the federal government, they would have spent over $107,000 in 2023 and accumulated nearly $30,000 in new debt. This would bring their total debt to approximately $579,000. The author emphasizes that this level of spending and debt is unsustainable for the average household.
Looking ahead, the author predicts that under Biden’s budget, the average household would spend $348,000 more than it earns over the next ten years, leading to a total household debt of $954,000. This debt is equivalent to having 2.5 mortgages, which further highlights the precarious financial situation that many households could find themselves in.
The article also raises concerns about the assumptions made in Biden’s budget regarding tax revenue growth. While the budget anticipates a 70 percent increase in tax revenues over the next decade, historical data shows that household incomes have only grown at a rate of 35 percent over the past three decades. If household incomes fail to meet projected growth rates, household debt would increase even further.
Furthermore, the article points out that Biden’s budget fails to address the depletion of Social Security’s trust fund, which will result in a 23 percent reduction in benefits for all Social Security recipients starting in 2033. This means that retirees will not only face significant debt but also reduced income in their retirement years.
The author criticizes the Social Security proposals aligned with Biden’s promises, arguing that they rely on budget gimmicks and fail to address the program’s solvency issues. The only proposal that would make Social Security solvent, according to the author, involves a substantial tax increase of $34 trillion over the next 75 years. This plan includes new taxes on small business owners and higher federal tax rates on wages, capital gains, and dividends.
In conclusion, the article emphasizes the need for a responsible federal budget that addresses the major drivers of the federal debt. The author argues for commonsense reforms to entitlement programs like Social Security and Medicare, as well as a reorientation of federal spending towards inherently federal government purposes. By adhering to the same budget limitations faced by ordinary Americans, the author believes that policymakers can better relate to and help everyday citizens while promoting the well-being of future generations.
Disclaimer: The views expressed in this article are solely the opinions of the author and do not necessarily reflect the views of The Epoch Times.
