Tag: Government budget balance

Trump’s budget balloons deficits, cuts social safety net
Social Security Disability

Trump’s budget balloons deficits, cuts social safety net

The president’s spending outline for the first time acknowledges that the Republican tax overhaul passed last year would add billions to the deficit and not “pay for itself” as Trump and his Republican allies asserted.
If enacted as proposed, though no presidential budget ever is, the plan would establish an era of $1 trillion-plus yearly deficits.
That deal, which includes large increases for domestic programs, rendered Monday’s Trump plan for 10-year, $1.7 trillion cuts to domestic agencies such as the departments of Health and Human Services, Agriculture and Housing and Urban Development even more unrealistic.
The White House used Monday’s event to promote its long-awaited plan to increase funding for infrastructure.
Trump also is proposing work requirements for several federal programs, including housing subsidies, food stamps and Medicaid. “The Trump budget proposal makes clear his desire to enact massive cuts to health care, anti-poverty programs and investments in economic growth to blunt the deficit-exploding impact of his tax cuts for millionaires and corporations,” said Rep. John Yarmuth of Kentucky, the top Democrat on the House Budget Committee.
And that’s assuming Trump’s rosy economic predictions come true and Congress follows through — in an election year — with politically toxic cuts to social programs, farm subsidies and Medicare providers.
Last year Trump’s budget promised such ideas could generate a small budget surplus by 2027; now, his best-case scenario is for a $450 billion deficit that year, more than $300 billion of which can be traced to his December tax cut. “Not only will this tax plan pay for itself, but it will pay down debt,” Mnuchin declared in September.
They went nowhere last year.

House budget deal held up on mandatory spending snag
Welfare

House budget deal held up on mandatory spending snag

(CNN)The House budget committee is putting its budget markup on hold as conservatives and moderates in the Republican conference are divided over how the budget would reduce mandatory spending.
A budget framework had emerged Monday in the House to set defense and domestic spending levels for the next fiscal year, as well as agree to $200 billion in cuts to mandatory spending programs, an increase from $150 billion in mandatory spending reductions that was initially being considered.
The $200 billion cut to mandatory spending was an attempt to thread the needle between conservatives who wanted more deficit reduction for mandatory spending and moderates concerned about cutting too deeply into the safety net, but now it appears neither side is happy. “If tax reform is the goal, dealing with entitlement changes simultaneously, I believe, makes the tax reform effort much harder, not easier,” Dent said.
He argued it would be better to do the tax reform piece this year and focus on the significant changes to mandatory spending programs in next year’s budget.
Dent noted that Republicans have tried before to cut back on mandatory spending on the food stamp program in a farm bill recently and started out looking at $40 billion in reductions, but ended up settling at trimming roughly $9 billion in the program.
The House appropriations defense subcommittee and House armed services committee are both marking up defense bills this week that adheres to the budget framework’s $621.5 billion base defense topline and $75 billion war budget, for a total increase of $28.5 billion more than the Trump administration request.
Under the budget framework, domestic spending would be set at $511 billion, a significant increase above the Trump budget’s $462 billion request but less than what was passed in last year’s omnibus spending deal.
Despite the snag on the budget deal, House appropriators are moving forward with their bills this week.
Of course, the House’s budget numbers are unlikely to be agreed to in the Senate, where Democrats who object to the lower domestic spending topline can filibuster spending bills.

Trump’s Tax Plan Is An Assault On Working Families
Social Security Disability

Trump’s Tax Plan Is An Assault On Working Families

Trump’s Tax Plan Is An Assault On Working Families.
Working American families need relief, American small businesses need help to compete in an increasingly global economy, and many of our nation’s wealthiest individuals use loopholes to avoid paying their fair share.
Congress needs to find bipartisan, workable solutions for genuine tax reform that help all Americans make ends meet, and I am ready to work with lawmakers on both sides of the aisle to make that happen.
Out of the trillions of dollars in tax cuts that Trump proposed this week, nearly all of that money would end up in the pockets of America’s highest income households and corporations, like Trump and his family.
By any measure, the President’s tax plan proposes massive giveaways to high-income individuals.
The average income in my district for a family of four is just $34,000 annually, and only one percent of the families in my congressional district make over $200,000.
The Trump tax plan calls for reducing the corporate tax rate and “pass-through” tax rate to 15 percent, a proposal that helps wealthy corporations far more than the mom-and-pop businesses in Alabama’s 7th District.
But the elimination of programs like these does not even come close to paying for the $7 trillion in tax cuts proposed in Trump’s tax plan.
This tax plan isn’t just a missed opportunity, it actively works against reform by raising the deficit and laying the groundwork for damaging budget cuts.
Regardless of party, I believe that every lawmaker wants the best for their constituents and for the future of our country, because that is what brought me to Congress.