President Trump's budget does not add up ($2 trillion math error)

One Pennsylvania senator says President Donald Trump's proposed $4.1 trillion budget is pro-growth, while the other is calling the spending plan proposal the wrong approach.

Critics, including former Treasury Secretary Larry Summers, have pointed out that the budget double-counts $2 trillion in order to claim that it balances.

Meanwhile, Medicare and Medicaid fraud prevention efforts would receive a $70 million increase next year.

White House budget director Mick Mulvaney says the administration is likely to tell lawmakers they'll need to act earlier than expected to increase the government's borrowing cap.

"For example, I do not support proposed cuts to National Institutes of Health".

Let's be clear about something else: the economic theory President Trump has embraced with this budget, trickle-down economics, is an abysmal failure and a fraud.

As FiveThirtyEight's Ben Casselman explained, the reason this level of growth is not now attainable is that during the 1990s, the USA saw "rapid growth in its labor force and rapid gains in the productivity of that labor force".

"This budget starts by taking away health care, then food, then housing, then education, then job opportunities", Ms Jayapal said.

"It cuts Social Security, decimates Medicaid and ends the Children's Health Insurance Program (CHIP) - it is an extreme document that reads like a wish list of special interest giveaways and is riddled with broken promises", he said. Rep. Mark Sanford, a former SC governor who warmly greeted Mulvaney as a fellow fiscal hawk, jumped on him for the budget's assumption of 3 percent annual economic growth.

John Kasich seems to think President Donald Trump's budget proposal is actually a reflection of how Mick Mulvaney, the Office of Management and Budget director, would choose to allocate funding if he were president. On Tuesday, Rep. Hal Rogers (R-KY) criticized the budget's impact on poor people, saying in a statement that "the proposed cuts to some federal programs are not mere shavings; they are rather deep and harmful to my district spanning Kentucky's Appalachian region and other rural, impoverished parts of the country".

Obama's more optimistic projections were for the period when the economy was still climbing out of the depths of the recession and had room to grow. The more states spend on the program, the more the federal government reimburses them.

So, what's the plan for Medicaid?

"We are talking about half the births in the United States, 30 million children, and half of all nursing home and long-term care nationwide for senior citizens and people with disabilities", said Rep. Jan Schakowsky, D-Ill., citing Medicaid's extensive reach. "Why do we change it?"

The budget, officially titled "A New Foundation for American Greatness", would offer states the choice to cap Medicaid funding through a per-capita spending allotment or a block grant for the entire program.

Mulvaney told Jackson Lee he was aware of the difference between types of diabetes. Mulvaney, who served in the House prior to becoming Trump's budget director, was known as one of Congress' biggest fiscal hawks, seeking to decrease virtually all federal spending.

  • Zachary Reyes