Trump's budget plan hits poor people hard
- Author: Zachary Reyes May 27, 2017,
May 27, 2017, 12:16
It was a weird scene: An organization financed by Vladimir Putin's regime, in the White House, lecturing a Trump administration official. There were 28 million beneficiaries of the programme before the recession, he said. It assumed that new lower rates would increase growth, while essentially using the existing rates to justify the higher tax revenue to close the deficit gap.
Conservatives, who may not agree with every detail of the President's budget, should take a hard look at what McCain, Simpson and other RINO opponents of the budget are actually opposing.
When it comes to poor Americans, the Trump administration has a message: Government aid is holding many of them back. The food stamp program serves about 42 million people. There are massive proposed cuts in food stamps, along with deep reductions in agricultural subsidies and water and sewer improvements.
Republican Rep. Kevin Brady calls Trump's proposals a "welcome change" because the budget envisions a balanced budget over the next decade. This plan will reduce publicly held debt to 60 percent of GDP, the lowest level since 2010, when the economic policies of the last administration took effect.
Trump's budget cuts, which are only recommendations to Congress, would impose steep cuts to the education, health, agriculture, state, treasury and commerce departments, as well as the Environmental Protection Agency and other federal offices. The chairman of the Budget committee, Diane Black, seemed to be trying to make the argument to the president as well in her questions to Mulvaney.
The Budget also follows through on a campaign promise and prohibits any funding in the Labor-HHS appropriations bill for certain entities that provide abortions, including Planned Parenthood.
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 US companies, gets Saudi Arabia and other countries to chip in for energy-related projects and some public-private deals. It also proposes to reduce or end direct funding for global programs and organizations whose missions do not substantially advance United States foreign policy interests. Both can be influenced to some extent by taxes and government spending.
Mnuchin says the president's objective is to simplify the tax code and to pass a middle-income tax cut. "Without adequate offsets, tax reform could drive up the federal debt, harming economic growth instead of boosting it".
Can these programs be more efficient? Earlier this month, the Administration articulated several core principles that will guide its discussion with taxpayers, businesses, Members of Congress, and other stakeholders.
"Inconsistent" is one way of putting it. He filed two items for Sputnik, including one noting that Trump's budget would deny tax credits to "parents who aren't legally in the United States even if their children are American citizens".
"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".