NewsUS national debt hits record $34 trillion - Can Biden's plan slash it by $2.5 trillion?

US national debt hits record $34 trillion - Can Biden's plan slash it by $2.5 trillion?

President of the USA Joe Biden
President of the USA Joe Biden
Images source: © Getty Images | 2023 Getty Images

1:33 AM EST, January 4, 2024

According to the Reuters agency, the U.S. debt surpassed the $33 trillion limit in September 2023. In 2020, the independent Congressional Budget Office projected that the U.S. would accrue $34 trillion in debt by fiscal year 2029. This forecast has been significantly impacted by the pandemic, necessitating substantial expenditures.

Understanding the mount of U.S. public debt

White House spokesperson Michael Kikukawa linked the surge in debt to what he termed "rolling debt." This he attributed to the tax cuts endorsed by Republicans in 2017, which largely benefitted corporations and wealthy Americans.

Kikukawa further indicated that President Joe Biden plans a debt reduction of around $2.5 trillion over ten years. This will be achieved by introducing tax increases for large corporations and wealthy Americans, as well as reducing spending on pharmaceuticals and tax incentives for oil conglomerates.