As an investigative journalist, I’ve always been intrigued by the financial decisions made by those in power. Today, I’m shedding light on the tax and spending changes under the presidencies of Donald Trump and Joe Biden. This analysis is based on a recent report from the Committee for a Responsible Federal Budget.
During his four-year term, former President Donald Trump approved $8.4 trillion of new ten-year borrowing, while President Joe Biden has approved $4.3 trillion so far during his three years and five months in office. Both presidents approved a combination of tax cuts, tax increases, spending cuts, and spending increases – but in very different proportions.
President Trump approved $5.3 trillion of gross primary spending increases over ten years, partially offset by roughly $500 billion of primary spending cuts, for a net primary spending increase of $4.9 trillion. On the other hand, President Biden approved $5.7 trillion of gross primary spending increases over ten years, along with $1.9 trillion of primary spending cuts, for a net primary spending increase of $3.8 trillion.
When it comes to taxes, President Trump approved $2.9 trillion of gross tax cuts over ten years, along with $400 billion of tax increases, for a net tax cut of $2.5 trillion. In contrast, President Biden approved almost $600 billion of gross tax cuts and nearly $600 billion of tax increases, resulting in little change in taxes.
As a result of these changes, President Trump increased ten-year interest costs by about $1 trillion, while President Biden increased ten-year interest costs by just under $500 billion.
In total, President Trump’s approved tax and spending policies added $8.4 trillion to the ten-year debt while President Biden’s approved tax and spending policies added $4.3 trillion to the ten-year debt.
These figures provide a clear picture of the fiscal impact of the policies approved by Presidents Trump and Biden. It’s crucial to understand these numbers as they play a significant role in the country’s economic and fiscal future. Remember, tax compliance is not just about paying your dues; it’s about understanding where your money goes and how it’s used.