Analysis: Build Back Better Budget Deficits Could Mean More Inflation, Policy Uncertainty

The U.S. Senate continues to consider the so-called “Build Back Better Act” (BBBA), which would significantly expand federal social and climate programs. As reported earlier, the National Association of Manufacturers has announced its opposition to the BBBA’s tax hikes.

The non-partisan Congressional Budget Office (CBO) and Tax Foundation have both estimated the BBBA would increase the cumulative budget deficit over the next 10 years — contrary to claims the legislation is “fully paid for.” This could lead to worse inflation and policy uncertainty, according to the Foundation’s analysis. 12/15/2021