Tuesday, 26 March, 2019

Trump administration sending Congress $4.1 trillion budget

Sandy Vega | 23 May, 2017, 15:04

However, almost everyone in the U.S. pays federal taxes in other ways, through things like gasoline taxes and the payroll tax, and many of those 78 million households pay state or local taxes. "This budget will kick-start an important, and overdue, debate about the need and effectiveness of many federal programs", Johnson said in a statement.

The cuts are part of a budget blueprint for the upcoming fiscal year that begins October 1. But Trump administration officials believe the rules should be even stricter, with the goal of pushing more people back into the workforce so that the economy can strengthen and create more growth.

"You have to understand that for Trump, growth is populism, so he doesn't see this as a budget of cuts but a budget for growth", said Sam Nunberg, a longtime Trump associate who worked on his campaign in 2015.

All without adding to the deficit this year. Mulvaney said the budget defunds Planned Parenthood on the assumption that the American Healthcare Act - which has a provision to defund the organization - will become law. "We need a budget that invests in OH communities so they can create jobs, upgrade their infrastructure, and protect our clean water".

A full budget submission by the administration to Congress is months overdue and follows the release two months ago of an outline for the discretionary portion of the budget, covering defense, education, foreign aid, housing and environmental programs, among others.

A portion of the increase in defense spending is intended for bolstering the troop population by 56,000, with half of those going to the Army.

And there is US$1.6 billion budgeted in the next fiscal year to begin building a wall on the southern border with Mexico. It was written for the people who pay federal income taxes, not the recipients of government spending, he said.

Trump's blueprint for the 2018 budget year comes out Tuesday.

But the administration's budget fails to reckon with certain realities about the USA economy.

The budget includes $639 billion for Department of Defense spending, $44.1 billion for the Department of Homeland Security and $27.7 billion for the Department of Justice.

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For the first time, the budget proposes a fully paid-for proposal to provide six weeks of paid family leave to new mothers and fathers, including adoptive parents, it said.

To achieve balance, the plan by White House budget director Mick Mulvaney relies on optimistic estimates of economic growth, and the surge in revenues that would result, while abandoning Trump's promise of a "massive tax cut".

Mulvaney noted that the Trump plan would require working adults whose low income otherwise qualifies them for the Earned Income Tax Credit and the Child Tax Credit to have a Social Security number.

Josh Archambault, a senior fellow at the Foundation for Government Accountability conservative think tank, said Trump's proposal gives states flexibility to impose work requirements that could usher in changes to programs such as Medicaid and public housing. It would save about $72 billion through changes to disability programs over the next ten years.

It also features $1 trillion for infrastructure investments. On the campaign trail, two of his advisers proposed providing tax credits to private companies to help fix and modernize public infrastructure.

While the bipartisan resistance to the budgetary ideas will be huge, the White House's attempt does represent the first bid in a long process to funding the government.

The budget does feature one major new domestic initiative - offering paid parental leave at a projected cost of $25 billion over the next decade.

The proposed budget, for the fiscal year that begins October 1, was being delivered to Congress Tuesday, setting off an extended debate in which Democrats are already attacking the administration for trying to balance the budget on the backs of the poor.

"Save Medicare, Medicaid and Social Security without cuts".


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