The Palm Beach Post

» White House budget plan retains deficits,

Increased spending and less tax revenue to push debt higher.

- By Damian Paletta Washington Post

WASHINGTON — The White House released a tax and spending plan Monday that would not eliminate the federal budget deficit after 10 years, its first public acknowledg­ment that large spending increases and the $1.5 trillion tax cut are putting severe pressure on the government’s debt.

The proposal, titled “Efficient, Effective, Accountabl­e: An American Budget,” sets forth President Donald Trump’s priorities as Congress prepares to consider spending bills for the next fiscal year.

It would continue to markedly increase military spending and set aside money for a wall along the U.S.-Mexico border.

The plan also calls for cuts to Medicare, Medicaid, food stamps and other social programs, reductions that conservati­ves have long sought.

But even with these reductions, which add up to more than $3 trillion in cuts over 10 years, the proposal would not bring the budget into balance because of the lost tax revenue and higher spending on other programs.

The White House projects a large gap between government spending and tax revenue over the next decade, adding at least $7 trillion to the debt over that time. In 2019 and 2020 alone, the government would add a combined $2 trillion in debt under Trump’s plan.

Even with upbeat economic forecasts and proposed cuts to social programs, most of which will be dead on arrival in Congress, the Trump administra­tion projects that it would run a deficit of $450 billion in 2027.

Last year, the White House projected its tax and spending proposals would lead to a budget surplus of $16 billion in 2027, which meant the government would have brought in more money than it spent on programs, something last accomplish­ed in 2001.

The budget plan was met coolly by many Republican­s.

“Budgets are aspiration­al documents and seldom have a real impact on spending,” said Rep. Mark Meadows, R-N.C., chairman of the conservati­ve Freedom Caucus.

Democrats, though, reacted with hostility.

“The Trump budget proposal makes clear his desire to enact massive cuts to health care, anti-poverty programs, and investment­s in economic growth to blunt the deficit-exploding impact of his tax cuts for millionair­es and corporatio­ns,” said Kentucky Rep. John Yarmuth, the top Democrat on the House Budget Committee.

Newspapers in English

Newspapers from United States