The Congressional Budget Office (CBO) released its estimate of the Biden administration’s annual set of budgetary proposals to Congress, and examined how the proposals, if enacted, would affect budgetary outcomes in relation to CBO’s baseline projections.
Based on CBO projections, President Joe Biden’s proposals will have the effect of budget deficits totaling $13.1 trillion over the next decade. Deficits would average 4.2 percent of gross domestic product (GDP) over that period. Revenues are expected to be higher—mainly from the proposal of raising the corporate income tax rate, from 21 to 28 percent—and would be $1.7 trillion (or 3 percent) more than revenues are in the CBO’s baseline projections for the 2023–32 period.
