Biden's Oval Office Address on the Debt Deal: 'We Also Have to Raise Revenue' (June 2, 2023)

In an Oval Office address on the debt-ceiling deal, President Joe Biden promised more. “We’re going to do even more to reduce the deficit. We need to control spending if we’re going to do that. But we also have to raise revenue and go after tax cheats and make sure everybody is paying their fair share,” Biden said on June 2, 2023, according to the official White House transcript [1].

“Republicans may not like it, but I’m going to make sure the wealthy pay their fair share,” he said [1].

The video above shows the address on June 2, 2023. Quotes are from the official White House transcript, the Treasury Department and GovInfo [1][2][3].

”Senator — Speaker McCarthy”

Biden thanked the Republican speaker, after a stumble on his title. “I want to commend Senator — Speaker McCarthy. You know, he and I, we — and our teams — we were able to get along and get things done,” Biden said [1].

“Both sides operated in good faith. Both sides kept their word,” he said [1].

He also slipped on a health program. “And Medicare [Medicaid] was protected and so were millions of people most in need,” Biden said. The bracketed fix is in the official transcript [1].

”Show Me Your Budget”

Biden opened by touting bipartisanship. “I’ve signed more than 350 bipartisan laws thus far in almost two and a half years,” he said. He warned of what a default would have meant: “Eight million Americans would have lost their jobs.” [1]

“If we had failed to reach an agreement on the budget, there were extreme voices threatening to take America, for the first time in our 247-year history, into default on our national debt,” he said. “No one got everything they wanted, but the American people got what they needed.” [1]

He ran through the economy, too. “We’ve created over 13 million new jobs, nearly 800,000 manufacturing jobs,” Biden said. “Unemployment is at 3.7 percent. More Americans are working today than ever in the history of this country. And inflation has dropped 10 straight months in a row.” [1]

He used a familiar family line. “You know, my dad used to have an expression. He said, ‘Joey, don’t tell me what you value. Show me your budget; I’ll tell you what you value.’” [1]

He recalled his State of the Union clash over Social Security and Medicare. “With the bright lights and cameras on, those few Republicans who were protesting, they agreed. They said they wouldn’t cut it,” Biden said [1].

“30 Fewer Million”

Biden also garbled a number while attacking the GOP’s first offer. “The House Republican plan would have meant 30 fewer million VA healthcare visits for our veterans. But we didn’t let that happen,” he said [1].

On energy, he said: “Today, new wind and solar power is cheaper than fossil fuel.” [1]

“$1.7 Trillion I Already Cut”

Biden claimed a record. “And that will be on top of the record 1.7 trillion — $1.7 trillion I already cut the deficit in my first two years in office,” he said. Then he turned to his predecessor: “And nearly $8 trillion was added to the national debt in the last administration.” [1]

Treasury’s own data shows the debt climbing on his watch. Total public debt outstanding was $27.75 trillion on Jan. 20, 2021, the day Biden took office, and $31.47 trillion on the day of the speech [2].

”Pay a Penny More”

“No one — and I promise no one making less than $400,000 a year will pay a penny more in federal taxes,” Biden said [1].

He bragged about the IRS. “That’s why last year I secured more funding to go — more IRS funding to go after wealthy tax cheats,” Biden said [1].

The deal he was selling clawed some of that back. The Fiscal Responsibility Act rescinded “$1,389,525,000” of the Internal Revenue Service money from the Inflation Reduction Act [3].

”Eight Percent”

Biden pitched a new tax. “Right now, the average billionaire in America pays just 8 percent in federal taxes. Eight percent. Teachers and firefighters pay more than that,” he said. “That’s why I proposed a minimum tax for billionaires. Republicans are against it, but I’m going to keep fighting for it.” [1]

By the Numbers

$27.75 trillion: the national debt when Biden took office [2].
$31.47 trillion: the debt on the day of the speech [2].
About $359 billion: the rise in the debt on the first business day after the deal became law [2].
$36.21 trillion: the debt on Jan. 17, 2025 [2].

What Happened Next

The deal became law the next day. The Fiscal Responsibility Act was approved on June 3, 2023, as Public Law 118-5. It suspended the debt limit until “January 1, 2025.” [3]

The debt jumped. On Monday, June 5, 2023, total public debt outstanding hit $31.83 trillion, about $359 billion more than on the day of the speech [2].

It kept climbing. By Jan. 17, 2025, three days before Biden left office, the debt was $36.21 trillion, about $8.45 trillion more than the day he took office [2].

For the White House’s “conversation” with congressional leaders that led to the deal, see HYGO News’ page on May 8, 2023. For how the budget director defended it, see the page on May 30, 2023.