The Congressional Budget Office (CBO) released its official cost estimate for the Democrats’ spending bill Thursday, but some models suggest the real cost is much higher.
The CBO announced that the bill would add $367 billion to the federal deficit. However, the Penn Wharton Budget Model estimates that the real cost of the bill will be nearly $4.6 trillion if temporary policies are made permanent. The Wharton Budget Model also predicts the federal deficit to increase by 24.4% and GDP to fall by 2.9% by 2050 if the current spending bill becomes law.
The Committee for a Responsible Federal Budget (CRFB) estimates the cost of the bill to be $4.9 trillion if programs and tax credits continue through 2031.
Democrats rely on arbitrary expirations on programs in the bill to lower the cost, the CRFB reported. However, the temporary programs are expected to become permanent. (RELATED: Democrats’ Spending Bill Creates A ‘Privacy Bureau’ With A $500 Million ‘War Chest’)
From @WSJopinion: Democrats have rigged the budget rules with multiple tricks that disguise the real cost of their tax and entitlement bill by trillions of dollars https://t.co/Y6qxvtqP5W
— The Wall Street Journal (@WSJ) November 19, 2021
The spending bill includes provisions for paid family leave, tax deductions, spending meant to combat climate change, universal pre-k, Medicare expansions, and more.
The Biden administration and numerous senior Democrats claimed for months that the bill would “cost zero dollars,” arguing that the pay-fors would offset the spending programs. CBO chief Phillip Swagel shot that claim down.
The bill passed the House Friday morning with a 220-213 vote and is now headed to the Senate.