As I've said before, the pedojoe tax and spend budget isn't what he says. This is also going to hit Treasury Bonds, which drive housing interest rates. For Donna and Pondy especially, if they don't get locked in quickly (which I really hope you can within the week!), it could be bad. The good thing is that they're not in CA anymore. Most of that "low cost housing developments" are stalled because of state regulations. That puts CA folks trying to buy at a severe disadvantage.
It also looks like the fed's response isn't that promising either. And it doesn't get any better for 20 years (scheduled in this bill).
Biden's 10-year Budget:
Federal Taxes per household in 2025 - $41,600
Federal Taxes per household in 2034 - $60,600
President Joe Biden recently released his budget proposal for fiscal year 2025, which, if approved, could add even more fuel to sky-high inflation, according to federal government budget experts who spoke to the Daily Caller News Foundation.
The president’s proposal lays out a slew of new targeted spending measures and tax increases that, in total, would add at least $14.8 trillion to the already massive national debt by the end of Biden’s presumptive second term. Many provisions in the budget would contribute to inflationary runaway deficit spending while not addressing the real problems causing unaffordability and rising prices, experts told the DCNF.
“Between the new anti-growth taxes and large deficits, you get a reduction in the real supply of goods and services and more financial assets floating around — more dollars chasing fewer goods and services — lots of inflation going forward, and the Fed will likely respond by waffling between printing money like crazy to cover some of the deficits — jacking up inflation even higher — and tightening the money supply, sending interest rates to the moon and only slightly bringing down inflation,” Richard Stern, director of the Grover M. Hermann Center for the Federal Budget at the Heritage Foundation, told the DCNF.
Inflation currently sits at a rate of 3.2% year-over-year as of February and has risen 18.5% since Biden first came to office in January 2021. Biden has made huge stimulus packages part of his economic agenda, passing the American Rescue Plan in March 2021, which approved $1.9 trillion in new spending, and the Inflation Reduction Act in August 2022, which authorized another $750 billion.
“Biden’s budget is anticipating that the debt will go from $260k per household to $370k per household,” Stern told the DCNF. “That will continue to send interest rates way higher … which both pushes housing out of reach for most people but also will starve business growth.”
“He uses phony accounting and his budget in various ways to pretend that he reduces the deficit compared to baseline,” Edwards told the DCNF. “It’s extraordinary that the government has run up $3 trillion in debt, and a president proposes a budget to add another $17 trillion in debt over the next decade. It’s extraordinarily irresponsible.”
This is a pretty good talking point for the GOP to send nationally in their ads during the election.
