Mnuchin Can’t Defend Trump’s Budget That Extends Tax Cuts For The Rich At The Expense Of Working Families
February 12, 2020
When Steve Mnuchin testifies before the Senate Finance Committee today, he’ll have to answer for Trump’s disastrous budget that extends his tax cuts for the wealthy, while cutting about $2 trillion from vital programs working families rely on.
Trump’s budget proposed spending $1.4 trillion to permanently extend his tax cuts for the wealthy, while cutting $2 trillion from vital programs working families rely on.
Center on Budget and Policy Priorities: “The budget’s tax cuts and program changes would increase income inequality and widen racial disparities. The budget would permanently extend the 2017 tax law’s tax cuts for individuals, including those that confer large benefits on high-income taxpayers and heirs to multi-million-dollar estates. Most of the individual income tax cuts are scheduled to expire at the end of 2025; extending them would cost $1.4 trillion through the end of the decade.”
New York Times: “The president’s plan includes what officials described as $4.4 trillion in spending cuts over the next decade, with about $2 trillion coming from changes to safety net programs and student loan initiatives. Those reductions encompass new work requirements for Medicaid, federal housing assistance and food stamp recipients, which are estimated to cut nearly $300 billion in spending from the programs.”
Despite all evidence to the contrary, Trump’s budget doubles down on the baseless claim that his tax cuts will pay for themselves.
Washington Post: “The 2017 GOP tax cuts and new domestic spending approved by bipartisan majorities in Congress have widened this gap markedly. However, the Trump administration’s new budget summary contains the line: ‘All administration policies will pay for themselves, including extending tax cut provisions expiring in 2025.’”
Acting OMB Director Russ Vought: “But over the 10-year period, the economic agenda of this president will be – will pay for the costs of the tax cut.”
Trump’s budget completely abandons his promise to balance the budget and eliminate the national debt within eight years.
Washington Post: “During Trump’s first year in office, his advisers said their budget plan would eliminate the deficit by around 2028. This new budget will mark the third consecutive time that they abandon that 10-year goal and instead suggest a 15-year target.”
Bloomberg: “U.S. debt has already risen $3 trillion during Trump’s first three years in office, and his plan calls for adding to the debt until 2035. The $30.5 trillion gross federal debt anticipated by 2030 — up from $22.7 trillion this fiscal year — would represent 84.6% of gross domestic product, down from 106.9% this year.”
Even assuming 3% economic growth every year — a rosy and unlikely projection well above CBO’s estimates and every year of Trump’s presidency so far — Trump’s budget is unable to eliminate the deficit within 15 years.
New York Times: “The budget maintains the administration’s tradition of highly optimistic economic growth forecasts, which have not borne out the past two years. Even then, it would leave the federal budget deficit only slightly smaller at the end of a possible second term for Mr. Trump, in 2024, than it was the year before he took office.”
FOX Business: “President Trump’s $4.8 trillion fiscal 2021 budget plan runs a deficit of $1 trillion … Balancing the budget in 15 years hinges on a very healthy economy, including averaging 3% growth over the next 15 years.”
New York Times: “[Trump’s budget] predicts growth above 3 percent annually for the next several years … The Fed, the budget office and others all see growth falling below 2 percent annually in that time. By 2030, the administration predicts the economy will be more than 15 percent larger than forecasters at the budget office do.”