The president is placing a renewed emphasis on reducing the deficit — which is the gap between what the nation spends and what it takes in — in order to blunt Republican criticism.
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But it is unclear if greater fiscal responsibility can deliver politically for Biden as Democrats try to defend their control of the House and Senate. His two most recent Democratic predecessors, Bill Clinton and Barack Obama, also cut budget deficits, only to leave office and see their Republican successors use the savings on tax cuts.
Bidden is making a nuanced argument about how the financial outlook has improved: Strong job gains over the past 16 months have increased total incomes and led to additional tax revenues. That means that this fiscal year’s budget deficit will decline $1.5 trillion, much better than the $1.3 trillion that was initially forecast. Less government borrowing will, in turn, limit the financial sources of inflation.