HomeBudget & Tax NewsBiden‐​McCarthy Deal a Modest Start (Commentary)

Biden‐​McCarthy Deal a Modest Start (Commentary)

Biden‐​McCarthy deal a modest start on reducing federal budget deficits by $1.5 trillion over 10 years, during which spending will exceed revenue by $20 trillion. (Commentary)
By Chris Edwards

Congress is considering the Biden‐​McCarthy debt‐​reduction deal. The Fiscal Responsibility Act of 2023 would reduce deficits by $1.5 trillion over the coming decade.

The reduction would be a start at righting the federal government’s fiscal ship, but just a small start.

The $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 expected over the coming decade.

Once congress gets this budget battle behind it, it can move on to larger reforms.

Total Federal Spending and Deficits, $Trillions, 2024-2033

Originally published by the Cato Institute. Republished with permission under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

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Chris Edwards
Chris Edwards
Chris Edwards occupies the Kilts Family Chair in Fiscal Studies at Cato and is the editor of Down​siz​ing​Gov​ern​ment​.org. He is a top expert on federal and state tax and budget issues. Before joining Cato, Edwards was a senior economist on the congressional Joint Economic Committee, a manager with PricewaterhouseCoopers, and an economist with the Tax Foundation.


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