U.S. bud­get projects $1-tril­lion deficit

Metro Canada (Vancouver) - - Metro News -

Pres­i­dent Don­ald Trump un­veiled a $4.4-tril­lion bud­get for next year that her­alds an era of $1-tril­lion-plus fed­eral deficits and — un­like the plan he re­leased last year — never comes close to promis­ing a balanced ledger even af­ter 10 years.

The bud­get sub­mit­ted Mon­day shows the grow­ing deficits de­spite ma­jor cuts for do­mes­tic pro­grams, largely be­cause of last year’s tax over­haul, which is pro­jected to cause fed­eral tax rev­enue to drop. This bud­get does not yet re­flect last week’s two-year bi­par­ti­san $300-bil­lion pact that wholly re­jects Trump’s plans to slash do­mes­tic agen­cies.

The pres­i­dent’s bud­get pro­poses dra­matic cuts to a wide range of do­mes­tic agen­cies from the De­part­ments of La­bor and In­te­rior to the En­vi­ron­men­tal Pro­tec­tion Agency and the Na­tional Sci­ence Foun­da­tion. Un­like last year’s sub­mis­sion, the 2019 Trump plan would cut Medi­care by $554 bil­lion over the next 10 years, a 6 per cent re­duc­tion from pro­jected spend­ing, in­clud­ing cuts in Medi­care pay­ments go­ing to hos­pi­tals and re­ha­bil­i­ta­tion cen­tres.

Pres­i­den­tial budgets are of­ten de­clared dead-onar­rival in Congress where law­mak­ers have their own ideas about spend­ing pri­or­i­ties. But the doc­u­ments do rep­re­sent the most de­tailed elab­o­ra­tion of an ad­min­is­tra­tion’s pri­or­i­ties.

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