President Donald J. Trump of the United States asked lawmakers on May 23 to slash $3.6 trillion from government spending spread over subsequent 10 years. Republicans, who are in control of the federal purse and US Congress, will take a decision of whether to make these cuts. All of them are politically sensitive. This proposal in all probability will not be approved in its present state.
The president wants to boost the US military at the expense of food assistance and healthcare programs crafted for the poor. It is expected that this proposal by President Trump will be rejected by Capitol Hill. Whatever the result, one thing is certain: Trump's vision of a government is one which cuts assistance to low earning Americans.
Nonpartisan policy organizations like Committee for a Responsible Federal Budget alleged that the Trump plan relies on unrealistic cuts, “rosy assumptions” and gimmicks when it comes to forecasting economic growth. The US economy is estimated to grow by three percent every year by end of Trump's initial term. In contrast, it was projected by Congressional Budget Office that the economy will grow at a 1.9 percent yearly pace over the same period.
Trump's plan charts out the route to saving money by cuts made to Medicaid healthcare programs. The latter is used mainly by the economically weaker section of the US population. These schemes are present the House of Representatives passed Republican healthcare bill. The president wants lawmakers to snip off a minimum of $610 billion from the Medicaid programs and about $192 billion from the food stamps program spread over 10 years. He wants to balance the US budget within those 10 years.
Federal aid provided to states will be less by three percent. Most cuts would be in those states which have backed Hillary Clinton, the Democratic opponent of Trump during the US presidential election held in 2016. Clinton supporting states will see a 4.8 percent drop in federal assistance while Trump supporting US states will see only 1.2 percent. An increased budget for spending will be enjoyed by the Pentagon. About $1.6 billion down-payment money will be allocated for building a US-Mexico border wall.
If one believes the White House, the tax cuts which are proposed will assist in achieving higher growth. They could pay for themselves through the revenue generation which is calculated to be an extra $2 trillion over a period of 10 years.