New York Magazine reports that Trump accountants committed a $2 Trillion basic arithmetic error. By way of explanation they report that the Trump budget assumes $2 trillion in higher revenue from growth in order to achieve balance of the budget after ten years. That’s like saying I’m saving Ten Thousand Dollars when I buy the diamond ring I want for $50,000, because I’m going to make $60,000.00 per year 10 years from now. The truth is that Trump didn’t make a mistake, he simply said what he knew people wanted to hear. Ronald Reagan and George W. Bush failed to come anywhere close to doing what Trump said he could do.
Trump’s blueprint for the 2018 budget year comes out today. It’s not a mistake that Trump is out of the country when this plan comes out. His plan includes a wave of cuts to benefit programs such as Medicaid, federal employee pensions, welfare benefits and farm subsidies.
Trump’s plan includes cuts to pensions for federal workers and higher contributions toward those pension benefits, as well as cuts to refundable tax credits paid to the working poor.
Cuts include a whopping $193 billion from food stamps over the coming decade — a cut of more than 25 percent. The program presently serves about 42 million people.
However the good news is that, even with a Republican dominated Congress, Trump may not be successful in getting his tax plan through Congress. Senate rules essentially require 60 votes to pass most legislation, and the Republicans control only 52 seats. Some laws can pass with only a majority, but they must be deficit-neutral, which Trump’s tax outline is not.
It’s a “tanks and tax cuts” budget. The attack on the poor is incontrovertible. Trump’s budget includes:
- Cuts to Medicaid (Over $600 billion in the next decade)
- Cuts to food stamps, known as SNAP ($193 billion over 10 years)
- Cuts to student loans ($143 billion over 10 years)
- Cuts to federal worker retirement programs ($63 billion over 10 years)
Disability programs also get a massive cut. Advocates for the poor are stunned at the magnitude of the cuts. It’s a “reverse Robin Hood agenda,“ says the Center on Budget and Policy Priorities. “The majority of the benefits go to high-income people.” All the top tax rates on businesses and individuals go down. Trump is giving rich investors (who earn over $200,000 a year) a tax break while half of America has nothing invested in the stock market, mostly because they don’t have extra money to invest.
Arguably the biggest gift to the rich is eliminating the estate tax. Right now, it only applies to estates worth over $5.5 million, but Trump wants to get rid of it entirely.
The amazing thing is that a substantial number of people on government aid are the very people who voted for Trump.
Seven of the top 10 states with the greatest proportion of their residents on food stamps went for Trump. The critical swing state of Florida was among them.
In addition to food stamps, Trump also slashes Social Security Disability Insurance, a core program to help people who are physically unable to work, and Temporary Assistance to Needy Families, a key welfare program.