The Biden administration has proposed trillions of dollars of new spending and tax increases. But these plans have contained little or no budget details, and the White House has used budget sleight of hand to hide the true costs involved.
In releasing its plans, the White House has ignored standard budgeting conventions and used an accounting gimmick to make the proposed spending look smaller and the proposed tax revenue look larger.
The first budget gimmick is to provide a cost estimate for the administration’s infrastructure plan, the American Jobs Plan, for only eight years, instead of the standard budget convention of 10 years. The White House Fact Sheet (March 31, 2021) states that the plan will “invest about $2 trillion this decade.” But White House officials have admitted that this $2 trillion number is imprecise. The real spending is closer to $2.4 trillion, and that number does not include more than $400 billion in new tax credits