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Thread: Trump's budget: Oceans of red ink

  1. #1
    Moderator HayJenn's Avatar
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    Trump's budget: Oceans of red ink

    The biggest single difference between President Donald Trump’s new budget and his first one nine months ago is this: The White House can no longer hide the immense deficits it would create, not after the tax cuts and military buildup Trump championed and secured.Documents released Monday show a pronounced drop in total government receipts from 2018 to 2022 when compared with the revenue numbers the White House presented for the same years last May. That includes about $740 billion less from corporate, estate and individual taxes in the same five years, a number that tracks with what the Joint Tax Committee had warned of in December.

    The result is to exacerbate the nation's already tenuous fiscal situation. Even if Trump were to get all the spending cuts he wants, plus his ambitious 3 percent growth, deficits over the next decade would total $7.1 trillion. That's twice what the Office of Management and Budget forecast last spring. Indeed, the level of red ink could be understated, since all these calculations rest on very favorable economic assumptions and do not include a full accounting of the recent spending increases and additional tax cuts enacted in recent weeks.

    Calculations by POLITICO show that the combination of tax cuts and spending increases approved in the last 60 days could increase government borrowing by over $900 billion through fiscal 2020, a nearly 50 percent increase from prior deficit estimates by the Congressional Budget Office. This being Washington, much has already been written about the hypocrisy of Republicans preaching balanced budgets and then running up huge deficits to try to save themselves in the midterm elections. But these numbers have real consequences, quite apart from politics. And the whole country has been pulled into a gamble that Treasury will continue to enjoy what’s been a very favorable run in low interest costs.

    https://www.politico.com/story/2018/...deficit-404588

    And

    The White House released a tax and spending plan Monday that would not eliminate the federal budget deficit after 10 years, its first public acknowledgment that large spending increases and the $1.5 trillion tax cut are putting severe pressure on the government’s debt. The proposal, titled “Efficient, Effective, Accountable: An American Budget,” sets forth President Trump’s priorities as Congress prepares to consider spending bills for the next fiscal year. It would continue to markedly increase military spending and set aside money for a wall along the U.S.-Mexico border. It seeks to authorize $4.4 trillion in spending for 2019, up 10 percent from the amount of money the government spent in 2017.

    The plan also calls for major cuts to Medicare, Medicaid, food stamps and other social programs, reductions that conservatives have long sought. But even with these reductions, which add up to more than $3 trillion in cuts over 10 years, the proposal would not bring the budget into balance because of the lost tax revenue and higher spending on other programs.

    The White House projects a large gap between government spending and tax revenue over the next decade, adding at least $7 trillion to the debt over that time. In 2019 and 2020 alone, the government would add a combined $2 trillion in debt under Trump’s plan. Even with upbeat economic forecasts and numerous proposed cuts to social programs, most of which will be dead on arrival in Congress, the Trump administration projects that it would run a deficit of $450 billion in 2027.

    https://www.washingtonpost.com/busin...=.08897cdd3c0f

    It was easy to see this was coming.
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    The White House projects a large gap between government spending and tax revenue over the next decade, adding at least $7 trillion to the debt over that time. In 2019 and 2020 alone, the government would add a combined $2 trillion in debt under Trump’s plan.
    $7 trillion over 10 years is an improvement over the $10 trillion in 8 years we saw with the last guy.
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    I would say he won't stop spending to compensate for tax cuts.

    He assumes tax cuts will lead to growth which leads to more tax being paid and that compensates for itself. He won't worry about inflation, that's the central banks job and he will blame them if they put interest rates up to calm any inflationary impacts of tax cuts.

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    Quote Originally Posted by Libertine View Post
    $7 trillion over 10 years is an improvement over the $10 trillion in 8 years we saw with the last guy.
    How nice you cherry picked another article.

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    Quote Originally Posted by Slartibartfast View Post
    I would say he won't stop spending to compensate for tax cuts.

    He assumes tax cuts will lead to growth which leads to more tax being paid and that compensates for itself. He won't worry about inflation, that's the central banks job and he will blame them if they put interest rates up to calm any inflationary impacts of tax cuts.
    LOL - so his budget puts us in red as far as the eye can see and then your going to blame the banks? The tax cuts are not going to lead to growth. The corps have said over and over the money they get will go to buybacks.


    Meanwhile who get hurt the most with the entitlement cuts?


    Lots of Trump supporters.

    So much for the party of balance budgets and family values.
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    For me this is a huge problem. We need to address our unsustainable national debt. Trump is failing on this front, but to date has slowed the progress of it. Now, with the new proposals, the slowing is gone, gone, gone.

    I would think this is a great time for us all to consider cutting 1 cent of every dollar the Federal Government spends each year from all programs. 1 cent. We do that for 7 years straight, and we are suddenly making real progress. We need to inflate and grow our way out as well. It's the only options.

    It warms my heart to see Democrats now worrying about the red ink. Good for you guys... welcome to the party!

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    Quote Originally Posted by HayJenn View Post
    LOL - so his budget puts us in red as far as the eye can see and then your going to blame the banks? The tax cuts are not going to lead to growth. The corps have said over and over the money they get will go to buybacks.


    Meanwhile who get hurt the most with the entitlement cuts?


    Lots of Trump supporters.

    So much for the party of balance budgets and family values.
    You may laugh, wait and see then apology accepted.

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    Quote Originally Posted by HayJenn View Post
    How nice you cherry picked another article.
    You posted both and they are consistent:

    Even if Trump were to get all the spending cuts he wants, plus his ambitious 3 percent growth, deficits over the next decade would total $7.1 trillion.

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    By law, by the end of a presidents or prime ministers office, he or she should not be allowed to finish on a deficit. Governments, like us, should live within their means.

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    Quote Originally Posted by Crusher View Post
    For me this is a huge problem. We need to address our unsustainable national debt. Trump is failing on this front, but to date has slowed the progress of it. Now, with the new proposals, the slowing is gone, gone, gone.

    I would think this is a great time for us all to consider cutting 1 cent of every dollar the Federal Government spends each year from all programs. 1 cent. We do that for 7 years straight, and we are suddenly making real progress. We need to inflate and grow our way out as well. It's the only options.

    It warms my heart to see Democrats now worrying about the red ink. Good for you guys... welcome to the party!
    Except the bill he has proposed does nothing of the sort

    Do you not remember last week when this was signed?

    WASHINGTON — Senate leaders struck a far-reaching bipartisan agreement on Wednesday that would add hundreds of billions of dollars to military and domestic programs over the next two years while raising the federal debt limit, moving to end the cycle of fiscal showdowns that have roiled the Capitol.

    The accord between Senators Mitch McConnell of Kentucky, the majority leader, and Chuck Schumer of New York, his Democratic counterpart, would raise strict caps on military and domestic spending that were imposed in 2011 as part of a deal with President Barack Obama that was once seen as a key triumph for Republicans in Congress.

    The deal would raise the spending caps by about $300 billion over two years. The limit on military spending would be increased by $80 billion in the current fiscal year and $85 billion in the next year, which begins Oct. 1. The limit on nondefense spending would increase by $63 billion this year and $68 billion next year.

    https://www.nytimes.com/2018/02/07/u...eal-trump.html

    So add up what was added last week and now this new proposal

    So now, the GOP can no longer be considered the part of "fiscal responsibility" - even though they bitched about it all the time under the last administration.

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