In his most recent resources, President Joe Biden proposes that the federal government spend billion more than it will get in, increasing the now untenable federal loan by$ 17 trillion over the next ten years.
But these 13- and 14- number money amounts have much meaning for regular Americans whose income, spending, and debt are usually in the five- and six- figure amounts. Translating Biden’s expenditure down to the house level provides a better perspective—albeit a terrible one.
His proposal has the government spending$ 7.3 trillion in 2025, rising to$ 10.3 trillion in 2034, with the federal debt climbing from$ 37 trillion to$ 54 trillion, even after accounting for$ 1.4 trillion in tax increases on the “wealthy Americans and big corporations”.
To break this down to the family level, we begin by looking at the median household income, which was an estimated$ 77, 750 in 2023. ( Note: The author’s estimate is based on 2022 median household income, increased by median earnings growth in 2023 ). If the median household budgeted like the federal government, they would have spent over$ 107, 000 in 2023 and taken on nearly$ 30, 000 in new debt, increasing their total debt to about$ 579, 000.  ,
Under the new Biden budget, if household spending and debt grew at the same rate as the federal government’s spending and debt, the average household would spend$ 348, 000 more than it earns over the next 10 years, and total household debt would rise to$ 954, 000. With the median house price equaling$ 417, 700, that debt is equivalent to having 2.5 debts.
However, the development of this dark and unsustainable family budget might actually go a long way. The government’s budget assumes that tax earnings may increase 70 % over the coming decade. For the median household, that would mean a big jump from the current$ 77, 750 annual household income to$ 151, 000 by 2034. Yet over the past three decades, household incomes have averaged half that growth, at 35 %. Household debt would fall even higher if family wages were to increase less than expected. That exact math applies to the federal government.
Higher income result in a smaller market, which eventually makes maintaining higher government revenues even more challenging and detrimental to average Americans ‘ wages and well-being, despite the fact that families have greater power than private citizens to increase their income in the short run.
It’s important to note that Biden’s budget does nothing to address the depletion of Social Security’s trust fund, which will result in 23 % in benefit cuts —a loss of$ 5, 300 for an average retiree—for all Social Security recipients beginning in 2033. Translated to the common household finances, that’s like draining all pension benefits records on top of accumulating$ 348, 000 in new bill, while relying on one’s kids to provide for oneself in retirement.  ,
Biden’s budget message states that he is working with Congress to protect and improve Social Security by urging Americans with the highest money to “pay their good share” without including any particular Social Security proposals.
The trouble with that” devotion” is that the one Social Security plan that was designed , to coincide with Biden’s promises—the Social Security 2100: A Sacred Trust Act—relies on budget gadgets, including 75 years of tax rises but just 10 years of profit increases. If the benefit enhances in that plan were made permanent, Social Security’s debt would be accelerated by two years and by 21 %, respectively.
The single recent proposal would increase the program and increase taxes by$ 34 trillion over the next 75 years, at least before accounting for the bad economic effects. That plan—the Social Security Expansion Act—includes a new 16.2 % tax on small business owners and top federal tax rates of 51.8 % on wages and 36.2 % on long- term capital gains and dividends, up from the current 40.2 % and 23.8 %, respectively.
Combined with state taxes, the top rates would equal 65.6 % on wages and 51 % on long- term capital gains and dividends. And those tax rates do n’t include the proposed budget by Biden for wealthy and high-earners.
Simply put, it is impossible to pay for current spending—and even less so, Biden’s proposed spending increases—by taxing the rich.
If the president —or any lawmaker—wants to relate to and help ordinary Americans, he should start by adhering to the same budget limitations faced by ordinary Americans. No responsible person or family would consistently spend more money than they make, and neither would they choose to prioritize their own consumption over the welfare of their grandchildren or children.
By proposing common-sense reforms to significant entitlements like Social Security and Medicare and by shifting federal spending to only inherently federal government purposes, a responsible federal budget would address the main causes of our nation’s debt. And just like a responsible household budget assists families in achieving their objectives, a responsible federal budget would expand opportunities and improve the well-being of current and future generations.
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