Introduction

The U.S. government has been under a continuing resolution since March 2020, indicating the ongoing challenges in establishing a comprehensive budget. Despite the monumental efforts required to craft a detailed budget, Congress has repeatedly failed to do so beyond the required deadline, leading to tensions and financial uncertainties. This article aims to analyze the current state of the federal budget, financial deficit, and the implications for future fiscal management.

The Federal Budget Under Continuing Resolution

For the past three years, the federal government has operated under a continuing resolution, delaying the submission and approval of a comprehensive budget. This has led to a state of flux where the country's financial plans remain uncertain, often relying on temporary funding measures which are not ideal for long-term financial stability.

Understanding the National Debt

The national debt, an indicator of the total amount the government owes, has surpassed $30 trillion. This staggering figure underscores the significant financial obligations facing the U.S. government. Many individuals feel personally inconvenienced by the high levels of national debt, believing it to be a result of reckless spending rather than the complexity of long-term economic planning.

A 2023 survey conducted by the Pew Research Center found that while the vast majority of Americans believe the federal government spends too much, only a minority understand the complexities of budgeting and the realities of national debt. For instance, many Americans, including the author, have lived frugally, paying for things in cash and avoiding personal debt beyond medical emergencies, yet they still feel a deep sense of debt unease.

The 2023 Biden Budget

President Biden proposed a $5.8 trillion budget for fiscal year 2023, allocating $1.6 trillion for discretionary spending. This budget also projects a $1.2 trillion deficit for fiscal 2023, marking a significant drop from the deficits seen in the previous two years. The proposed budget includes substantial tax hikes on the wealthiest Americans and corporations, aiming to reduce the deficit.

Sources describe this as “really freaking horrible,” highlighting the stark contrast between fiscal discourse and public perception. Critics argue that substantial tax hikes on the wealthy and corporations may be insufficient to balance the budget without significantly impacting military spending and other critical areas.

Addressing Key Fiscal Issues

The core fiscal challenge revolves around the ability of the Democrats to restore tax rates to pre-Reagan levels, particularly for the wealthy and corporations. The current interest payments alone on the national debt are alarming, totaling $400 billion in 2022. This figure is expected to grow as the debt-to-GDP ratio approaches 1:1, a ratio that has historically marked critical financial crises, as seen in Greece and other countries.

A comprehensive solution must address not only tax rates but also military spending, which currently stands at nearly $1 trillion, accounting for over 30% of the discretionary budget. To achieve a balanced budget, military spending would need to be reduced by more than 50%, a daunting task given the national security interests and the political dynamics surrounding defense spending.

The Role of Congress and Presidential Pressure

Both the executive and legislative branches have critical roles in fiscal management. The Office of Management and Budget (OMB) has a detailed and Herculean task in preparing a budget proposal each year, well before the deadline. However, despite this, Congress frequently resorts to continuing resolutions, obfuscating the necessary budgetary decisions.

Historically, Congress has been largely successful in passing such measures, leading to a state of continuous partial government shutdowns. The recent Inflation Reduction Act and the raising of the debt ceiling are examples of such expedient measures. While convenient in the short term, these solutions fail to address the underlying issues of long-term financial sustainability.

The failure of Congress to pass its 12 required appropriations bills on time implies a dereliction of duty. The public's heavy reliance on these measures to fund the government highlights the importance of clear, consistent, and transparent financial management. The “you the people” notion must be reinterpreted to reflect a more active role in holding elected officials accountable for their fiscal decisions.

Conclusion

achieving financial balance and stability requires a multi-faceted approach involving tax reform, military spending reduction, and increased transparency. While the path forward may be challenging, it is clear that failing to address these issues will only exacerbate the current financial challenges facing the U.S. government.