Build Back Better will balloon the Public Debt and lead to more inflation

CBO confirms that BBB will increase the public debt by more than $3 trillion.

President Biden is urging the Senate to pass the Build Back Better (BBB) massive spending bill that has already passed in the House. Biden claims the bill will not increase the deficit and will reduce inflation. The Congressional Budget Office (CBO) disagrees.

Biden says the bill will result in government spending increasing by about $1.75 trillion over the next decade. He says that all the spending will be financed by raising taxes on the wealthy. Therefore, it will not add to the deficit.

He also says that the massive increase in government spending on top of his $1.9 trillion stimulus bill passed in May and the $1.2 trillion infrastructure bill passed in November will reduce inflation.

In its original assessment, the CBO calculated the ten-year cost of the bill, exactly as it is written to be $1.635 trillion and the increase in tax revenue to be $1.268 trillion. That means the deficit would increase by $367 billion. Recently the CBO recalculated those numbers using different assumptions.

Assuming the programs, which are only funded for two or three years, become permanent, the spending would increase to $4.2 trillion, meaning the deficit…