President Trump tendered his budget proposal for fiscal year 2018 to Congress Tuesday, one in which the White House takes aim at entitlement programs, promises to balance the federal deficit and vows to aggressively grow the economy.
Mr. Trump’s plan would cut government spending by $3.6 trillion over the next decade and projects to grow the U.S. economy at an annualized rate of three percent.
“We will grow our economy. It is growing already. It will grow faster than you’ve seen it in decades. The budget we are proposing will reverse economic stagnation and build the path to millions of new jobs for American workers,” Trump said in his weekly radio address.
Titled “Taxpayers First,” Trump’s $4 billion measure proposes steep cuts in Medicare to the tune of $800 billion over 10 years to compliment the expected Obamacare repeal, reduces dependency on food stamps by 25 percent and cuts disability programs by $72 billion over the same period.
The budget proposal also recommends reducing funding to the operating budgets of the Education and State departments, and the EPA — cutting clean air and water programs and over 3,800 jobs at the environmental agency. In addition, Medicaid funding would not be increased and monetary support for drug prevention programs proposes to be cut.
Similarly, the plan slashes funding for crop insurance by 36 percent, ends public-service loan forgiveness for federal loans issued after July 2018, shrinks federal retirement benefits by $63 billion over 10 years, and would restrict eligibility for the Earned Income Tax Credit and the Child Tax Credit to those with Social Security numbers.
In a surprising move, the president is advancing only $200 billion for his proposed infrastructure spending, down from the original plan of $1 trillion. Trump’s budget does include a scaled-back proposal for his wall with Mexico, most of which will aid border security and repairs and maintenance of existing barriers.
Additionally, Trump advances a proposal to increase defense spending to $603 billion.
Most important, the White House’s budget proposal is filled with tax cuts, which administration officials say will inspire growth and increase tax revenue into federal coffers.
As described in the budget plan, individual tax rates would be lowered, the standard deduction would be expanded, particularly for child care expenses, retirement, charitable giving and home ownership, and the estate tax would be eliminated.
On the business side, Trump proposes cuts to the corporate tax rate, repealing the 3.8 percent net investment income tax, ending the alternative minimum tax, cutting the business tax, and wiping out most special interest tax loopholes.
The president’s proposal also advances the idea of a territorial system of tax, but offers a one-time repatriation tax on accumulated overseas income.
[Reuters] [The Hill] [AP] [Breitbart] [CNNMoney] [CNBC/YouTube] [Photo courtesy Fox News]