Trump's budget slashes spending
- Author: Larry Hoffman May 24, 2017,
May 24, 2017, 21:42
But it slashes non-defense programs including Medicaid, Food Stamps (SNAP), welfare cash assistance (TANF), and Social Security disability.
"President Trump's 2018 budget plan makes some notable, and welcome, recommendations such as balancing the budget in 10 years", Faso said in a statement.
"The president believes that we must restore the greatness of our nation and reject the failed status quo that has left the American dream out of reach for too many families", the administration said in its budget which was titled, "The New Foundation for American Greatness".
Although it is not expected to survive on Capitol Hill, the proposal puts numbers on Trump's vision of a government that radically cuts assistance to lower-income Americans.
Senator Bernie Sanders, who ran a populist campaign during the Democratic presidential primary, said the budget showed that Trump's campaign promises to stand up for working people was "just cheap and dishonest campaign rhetoric that was meant to get votes", Sanders told a news conference.
But it could be the start of real bargaining that goes something like this: Trump doubles his offer (unlike Mulvaney, he doesn't care about budgetary red ink), uses some money from a tax on foreign income of USA companies, and gets Saudi Arabia and other countries to chip in for energy-related projects and some public-private deals.
Trump's balanced-budget goal depends not only on the growth projections that most economists view as overly optimistic but also a variety of accounting gimmicks, including an nearly $600 billion peace dividend from winding down overseas military operations and "double counting" $2.1 trillion in revenues from economic growth - using them to both pay for tax cuts and bring down the deficit. "Grow the economy, balance the budget".
Trump wants lawmakers to cut at least $610 billion from Medicaid and more than $192 billion from food stamps over a decade.
Steve Bell, a Republican who was staff director of the Senate Budget Committee in the 1980s, indicated that the Trump budget is so unrealistic that it endangers Republican priorities like tax reform.
On taxes, Trump promises an overhaul that would cut tax rates but rely on economic growth and erasing tax breaks to avoid adding to the deficit.
Another senior Republican lawmaker, Fred Upton of MI, questioned inclusion of money for Trump's border wall, remarking: "I thought Mexico was going to pay for the wall, why is this in our budget?" It aims to balance the budget in 10 years, halfway through Ivanka's first term. Administration officials defended these measures as a way to reduce government support they contend is keeping millions of Americans out of the work force and thus reducing economic growth.
President Donald Trump has sent Congress a $4.1 trillion spending plan that proposes to eliminate the deficit in a decade while protecting Social Security and Medicare. The food stamp program serves about 42 million people.
Mulvaney insisted that, with an agenda including cutting taxes deregulation and reduction of the size of the federal government, the administration will be able to achieve sustainable growth of 3 per cent annually over the coming decade.
The submission will set off months of debate in Congress. Democrats have already voiced strong opposition to the plan, and even Republicans are wary of the political dangers in Trump's draconian cuts.
Trump won support from GOP leaders.
The budget sought USD 1.5 trillion in nondefense discretionary cuts and USD 1.4 trillion in Medicaid cuts over the course of a decade, while adding almost half a trillion dollars to defense spending, reports the Hill.
House Speaker Paul Ryan says he is pleased the budget projects a balance and says he's never encountered a presidential budget that people didn't declare "dead on arrival".
Budget Director Mick Mulvaney holds up a copy of President Donald Trump's proposed fiscal 2018 federal budget as he speaks to members of the media in the Press Briefing Room of the White House in Washington, Tuesday, May 23, 2017.
The proposed budget, for the fiscal year that begins October 1, was being delivered to Congress Tuesday, setting off an extended debate in which Democrats are already attacking the administration for trying to balance the budget on the backs of the poor. House Majority Leader Kevin McCarthy, a fellow Republican, said lawmakers would have to reform both programs to save them.
In addition, the budget would make another Dollars 610 billion in cuts to Medicaid over 10 years by transitioning the program from a traditional entitlement to either a block grant program or a per-capita program that puts a ceiling on federal Medicaid funding to states.