Fact check Pinocchios: Yellen repeatedly claims CBO score Build Back Better ‘fully paid for’

On 11/30/2021, Treasury Secretary Janet L. Yellen said President Biden’s Build Back Better (BBB) plan “is fully paid for, or even more than fully paid for. And CBO just completed a comprehensive review of it in which they found essentially the same thing.” Sen. Kevin Cramer (R-N.D.) said, “I’m sorry, but you didn’t read it completely. It does say $367 billion over 10 years effect on the deficit. It then notes that it did not include the revenue that would come from enhanced resources for tax enforcement.”

The CBO said IRS investment would result in $207 billion in additional revenue, for a net impact of $127 billion in deficit reduction. That still would leave Biden’s plan in a deficit hole. Yellen acknowledged that as she continued responding to Cramer. But she offered a caveat to the CBO’s caveat: They “have indicated that their scoring of that does not take account of behavioral changes that would result from a regime of stricter tax enforcement and Treasury put out its own estimate.” Cramer sniffed: “And fairy dust creates energy, I understand.”

Washington Post gave Yellen Two Pinocchios: “Yellen cannot pick and choose what part of the CBO score she chooses to accept to claim that the CBO found that the Build Back Better bill is deficit-neutral. To her credit, when challenged, she acknowledged the difference of opinion with the CBO on modeling behavior effects. But her statements are still worthy of Two Pinocchios.”