Biden Policies Are “Fiscally Responsible,” Cut Deficit by $3T, Tax Rich, Blame GOPs for Deficit

On March 8, 2023, White House Press Secretary Karine Jean-Pierre previewed President Biden’s upcoming budget proposal during a press briefing, claiming it would cut the federal deficit by nearly $3 trillion over ten years through tax increases on corporations and wealthy Americans. The briefing featured extended exchanges with reporters who questioned whether the budget went far enough, whether the deficit reduction figure had shifted, and whether the tax proposals were dead on arrival given Republican opposition in a divided Congress. Jean-Pierre repeatedly blamed the previous administration for adding trillions to the national debt while framing Biden’s approach as “fiscally responsible.”

White House Previews the Budget

Ahead of President Biden’s scheduled release of his fiscal year 2024 budget, Jean-Pierre outlined the administration’s fiscal priorities at the March 8 briefing. She told reporters the budget would propose “tax reforms to ensure the wealthy and large corporations pay their fair share while cutting wasteful spending on special interests like Big Oil and Big Pharma.”

One of the headline proposals was to quadruple the tax on corporate stock buybacks, which the White House insisted would not raise taxes on anyone making less than $400,000 per year. Reports also indicated the budget would include a new 20% minimum tax on individuals worth more than $100 million.

When a reporter asked Jean-Pierre to confirm the specific proposals, she declined to get ahead of the President: “I’m just not going to get ahead of that. I can’t share everything, Nancy. I’m not going to get ahead with the President.”

A reporter noted that the budget rollout was receiving unusual treatment: “Typically a budget gets rolled out and it’s just like a big paper dump and maybe like a small speech in a small room and this is the president going to another city. So are you treating this budget unlike other budgets?”

Deficit Reduction Claims Questioned

Jean-Pierre announced that Biden’s budget would cut the federal deficit by nearly $3 trillion over the next decade, a figure that had grown from the $2 trillion the President had been citing for over a month. Reporters pressed for an explanation of the increase.

One reporter asked: “For over a month now, President Biden has been saying that this budget blueprint that he’s going to release is going to have two trillion dollars in deficit reduction. You guys are now saying it’s nearly three trillion. So could you give us a sense of how you got there and why that number has increased? Are there specific revenue raisers or spending cuts that you’ve now added that weren’t previously?”

Jean-Pierre explained: “Making the wealthy and big corporations pay their fair share without raising taxes on Americans that are making less than four hundred thousand dollars. And the changes that you saw from two trillion to three trillion, as we work through the budget process, the proposals that the President supported and wanted to include in this year’s budget added to nearly three trillion dollars in deficit reduction.”

Another reporter challenged the administration’s deficit claims more directly: “Just taking this top line number of nearly $3 trillion in deficit reduction over 10 years. Still the deficit is going to be huge over the next 10 years. And billions or trillions of dollars will be added to the national debt. There are critics who I’ve spoken to who say that this budget although a statement of priorities doesn’t go far enough in dealing with the structural problems that the United States faces fiscally. Does he think his budget goes far enough?”

Jean-Pierre responded by pivoting to blame the prior administration: “The last administration added $3 trillion or $2 trillion to the debt when they put forward a really irresponsible piece of legislation that gave tax breaks to the wealthy, especially millionaires and billionaires.” She added that congressional Republicans wanted to “cut or get rid of or repeal IRA, the Inflation Reduction Act, which would add to that deficit because we know the Inflation Reduction Act actually lowers the deficit by more than $200 billion.”

Why Deficit Reduction Became a Priority

A reporter pointed out that Biden had previously proposed policies that fiscal watchdogs said would add to budget deficits, and asked why deficit reduction had now become a cornerstone of his messaging.

Jean-Pierre’s answer tied it back to Biden’s broader economic philosophy: “We talk about deficit reduction when we talk about having being fiscally responsible. This is something that the president has talked about since the campaign. And you hear me just as I did moments ago talk about the $1.7 trillion deficit that he did the first two years. The president does not believe in trickle down economics. This is something that he’s talked about even during the State of the Union where we know it doesn’t work. So the president has rejiggered that thinking and wants to build an economy that matters for it.”

Tax Increases and Republican Opposition

Reporters raised the political reality that Biden’s proposed tax increases were unlikely to pass a divided Congress. One reporter asked: “As you said, it will include a number of proposals for tax increases. What are Americans supposed to make of that given that a number of Republican lawmakers accept that’s already dead on arrival?”

Jean-Pierre framed the proposals as having popular support: “The ones who are the specific piece of the President’s policy is the 400 more than someone who makes more than four hundred thousand dollars. That’s something that Americans believe.”

When pressed on whether the budget should be seen in the context of the 2024 presidential campaign rather than as a serious legislative proposal, Jean-Pierre insisted: “The President believes in working in a bipartisan way. That’s why he’s been very clear. If they want to talk to the President about how we’re going to reduce the deficit, he’s willing to have that conversation. But that’s not what they’re putting forth.”

Jean-Pierre also challenged congressional Republicans to release their own budget: “We hear Republicans in Congress talking about how they’re going to release a budget. And we are calling on them to show us what’s in your budget.”

Economy and Unemployment Concerns

The briefing also touched on economic conditions, with a reporter noting that the Federal Reserve was forecasting that unemployment might need to rise before inflation targets were met. The reporter asked whether the White House shared that view.

Jean-Pierre responded: “When we look at the recent economic indicators and we look at the data, it is not consistent with a recession or even a precursory period.” When asked whether rising unemployment might undermine the administration’s economic messaging, she said: “Because of the President’s economic plan, we see that his plan is working. And I think that’s important to point out too. We understand that there is concerns. We always say there’s always more work to do, obviously.”

Additional Context

The March 2023 budget proposal came at a time when the Biden administration was simultaneously battling inflation, navigating a debt ceiling standoff with House Republicans, and laying the groundwork for Biden’s 2024 re-election campaign. The budget’s emphasis on taxing the wealthy and reducing the deficit served as a political document as much as a fiscal one, signaling the administration’s priorities for the election cycle. Republicans countered that Biden’s spending policies had fueled inflation and that the proposed tax increases would harm economic growth.

Key Takeaways

• The White House announced Biden’s budget would cut the deficit by nearly $3 trillion over ten years, up from the $2 trillion figure Biden had been citing for over a month, with Jean-Pierre attributing the increase to additional proposals added during the budget process.
• Jean-Pierre blamed the prior administration for adding “$3 trillion or $2 trillion to the debt” through “a really irresponsible piece of legislation” giving tax breaks to the wealthy.
• Reporters challenged the administration on whether the budget went far enough, noting that “the deficit is going to be huge over the next 10 years” and “trillions of dollars will be added to the national debt” despite the proposed cuts.
• Jean-Pierre declined to confirm specific proposals, including a 20% minimum tax on those worth over $100 million, saying she could not “get ahead” of the President’s formal announcement.
• When asked about the political viability of tax increases in a divided Congress, Jean-Pierre insisted Biden was willing to work in a bipartisan way but challenged Republicans to “show us what’s in your budget.”