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The double count: Trump budget includes $2 trillion accounting gimmick

26 Mai 2017

They want to know whether it would meet a pledge he made shortly after the election that there would be "no absolute tax cut" for the rich.

Trump's budget, however, would also supposedly balance in 10 years - even though the spending in the proposal is greater than the tax receipts it assumes.

-The Poor, Part II: Trump's budget would cut the food stamp program by $191 billion over the next decade.

"It balances in the 10th year". "Grow the economy, balance the budget".

All told, the recommendation - titled "A New Foundation for American Greatness" - would purge more than $3.5 trillion in federal spending over 10 years.

The budget document, released Tuesday, proposes increases in funding for national defense, veterans programs and homeland security, including $2.6 billion for border security measures, like the construction of a wall along the US border with Mexico.

According to a new Morning Consult/POLITICO poll, 43 percent of Americans said they trust Republicans to handle the economy, while 38 percent of Americans trust Democrats.

In a Washington Post op-ed, Summers, who served as Treasury Secretary under President Clinton and director of the National Economic Council under President Obama, said the White House's budget proposal is filled with "ludicrously optimistic economic assumptions".

"Our argument was instead of. giving somebody $100mn, we could give them a smaller number worth of loan guarantees and they could actually buy more stuff". All three states voted overwhelmingly for Trump last November.

Mnuchin says the tax plan is being crafted in a way that would cut taxes on the "high end" and eliminate all deductions other than those for mortgage interest payments and charitable donations. The administration has requested $2.6 billion for overall border security.

Trump's proposal foresees selling half of the US emergency oil stockpile, created in 1975 after the Arab oil embargo caused fears of price spikes.

At the same time, the blueprint boosts spending for the military by tens of billions and calls for $1.6 billion for a border wall with Mexico that Trump repeatedly promised voters the USA neighbor would finance.

It is unclear if the Republican-controlled House and Senate will be able to pass a budget blueprint for the fiscal year starting on October 1.

But the effort has stalled as the White House grapples with the political fallout from allegations of Russian meddling in the 2016 USA election.

U.S. Rep. Lloyd Smucker, through his role on the House Budget Committee, was given the same allotted five minutes as other committee members to question Budget Director Mick Mulvaney during a hearing on Wednesday. "We don't have enough money to take care of everybody who doesn't need help".

While he said he backs the broad goals under Trump's budget, he does find disagreement with some aspects.

It requests a $54 billion hike in defense spending that would be offset by making drastic cuts to nearly 20 federal agencies.

That is only 3 percent more than former President Barack Obama had sought in his long-term budget plan.

Such cuts - which include "zeroing out" programs like community development block grants and heating aid to the poor - were ignored when Congress earlier this month wrapped up a massive spending bill for the current year.

From Europe where he is attending a world health conference, HHS Secretary Tom Price released a statement that said the budget "outlines a clear path toward fiscal responsibility by creating efficiencies that both improve services and save money". "This budget is not going to go anywhere". Trump previously assured his base that he would not cut Medicare, Social Security or Medicaid if elected. The headline figure is that the administration wants to rip a staggering $190 billion from the food stamp programme which helps 42 million of the poorest in America.

The double count: Trump budget includes $2 trillion accounting gimmick