Biden‐McCarthy Deal aModest Start
pa href=https://www.cato.org/people/chris-edwards hreflang=undChris Edwards/a
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pCongress is considering the Biden‐McCarthy debt‐reduction deal. The Fiscal Responsibility Act of 2023 would reduce deficits by a href=https://www.cbo.gov/system/files/2023-05/hr3746_Letter_McCarthy.pdf rel=noopener noreferrer target=_blank$1.5 trillion/a over the coming decade./p
pThe reduction would be a start at righting the federal government’s fiscal ship, but just a small start./p
pThe $1.5 trillion in savings would take a very modest bite out of the $20 trillion in cumulative deficits and $80 trillion in cumulative spending a href=https://www.cbo.gov/system/files/2023-05/59096-Budget-Outlook.pdf rel=noopener noreferrer target=_blankexpected/a over the coming decade./p
pOnce congress gets this budget battle behind it, it can move on to a href=https://www.cato.org/cato-handbook-policymakers/cato-handbook-policymakers-9th-edition-2022/cutting-federal-spending rel=noopener noreferrer target=_blanklarger reforms/a./p
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img loading=lazy src=/sites/cato.org/files/styles/pubs_2x/public/2023-05/debt%20deal%202023.png?itok=ElbPxSNw width=728 height=498 alt=Total Federal Spending and Deficits, $Trillions, 2024-2033 class=image-style-pubs-2x component-image //div