Most economists are skeptical of such growth projections, and Kansans are painfully aware that promising prosperity while slashing taxes is a recipe for a financial crisis.
Office of Management and Budget Director Mick Mulvaney told reporters Tuesday that the government should show compassion for Americans in need but it should “have compassion for folks who are paying (for) it”, according to a White House transcript of that briefing. It is an obvious workaround for a president who pledged as a candidate not to cut the entitlement programme.
Another dubious assumption tied to this budget is that tax cuts that will overwhelmingly benefit the wealthy will generate enough revenue to effectively pay for themselves with a growth rate over the next decade of 3 percent.
Host Steve Doocy jokingly asked Mulvaney if it was true that children would die and seniors would starve if Trump’s budget passed. Those cuts go on top of the repeal of Obamacare’s expansion of the program to 14 million people and amount to, by decade’s end, an nearly 25 percent cut from present projections. Republicans have had many opportunities over the years to ax such budget zombies as the National Endowment for the Arts, Corporation for Public Broadcasting subsidies and the Economic Development Administration. If the budget is that bad, what was the point of submitting it in the first place?
Mulvaney pitched the $4.1 trillion budget proposal as reflecting the interests of taxpayers who want their money properly spent. -Mexican border wall. The president does make good on his promise to invest in infrastructure: $200 billion.
To the critics, Mulvaney said: “Help us figure out a way to get back to 3 percent growth”.
A better course would be to undertake more intelligent tax reform that simplifies the tax code and ends numerous loopholes that let many corporations and rich individuals like Mr. Trump himself pay far less than the high rates they unconvincingly lament.
He explained that the budget assumes tax reform will be deficit-neutral because “it was in all honesty the most efficient way to look at it”.
Sen. John McCain, R-Arizona, said in a statement that the defense increase is “inadequate to the challenges we face”. But the reality is you can’t.
Two major factors usually determine how fast an economy can grow. That first part, though, isn’t helping almost as much as it used to now that so many baby boomers are hitting retirement. That advantage no longer exists.
-The Poor: Trump’s budget would slash Medicaid and the Children’s Health Insurance Program by $616 billion over the next decade.
One aspect of Trump’s budget that greatly concerns the AAAS, and other science organisations, is a 22% cut proposed for the National Institutes of Health (NIH). He says Congress may soon hear from Treasury Secretary Steven Mnuchin (mih-NOO’-shin) about a change in the deadline to raise the debt ceiling. “So there are more people who need SNAP benefits…” This generally requires workers to cultivate skills and graduate from college or for companies to deploy new technology that enhances what workers already do.
It does propose a six-week family leave program for new parents, costing about $20 billion over 10 years-a project championed by Trump’s daughter and key aide Ivanka. Without it, many more of them would be working.
And the goal of the $2 trillion on-purpose-mistake is to allow Trump to declare that he is balancing the budget-when Barack Obama didn’t-even though his budget is worse in every way imaginable. The budget calls for increased user fees from manufacturers of medical device, pharmaceutical drugs, generics, and other products to the tune of $1 billion.
Republicans anticipate that they’ll use a reconciliation package to pass tax reform, which could prevent them from passing legislation that adds to the deficit outside the budget window they use, which has typically been 10 years. But Trump has not claimed his tax cuts will recoup more than 100 percent of their lost revenue, so it’s simply an embarrassing mistake.