The BLOTUS’ True Colors Highlighted With His Budget Proposal…

Trump who campaigned as a populist has issued a budget proposal that defines him as a draconian conservative on economic and social issues and pro military to the point of  extreme militarism.  Trump’s real vision is apparently to take America down a road the majority us did not vote to go.

POLITICO – Donald Trump, whose populist message and promises to help American workers propelled him to the White House, issued a budget proposal on Tuesday that instead takes aim at the social safety net on which many of his supporters rely.

Rather than breaking with Washington precedent, Trump’s spending blueprint follows established conservative orthodoxy, cutting taxes on the wealthy, boosting defense spending and taking a hatchet to programs for the poor and disabled – potentially hurting many of the rural and low-income Americans who voted him into office.

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The president’s budget plan calls for more than $1 trillion in cuts to a wide range of social programs with millions of beneficiaries, from farm subsidies to federal student aid. That includes a $600 billion cut to Medicaid over 10 years, despite Trump’s repeated promises on the campaign trail not to cut the program. The budget also takes an ax to the federal food stamp program and Social Security Disability Insurance.

Trump also proposes some of the deepest cuts to agriculture subsidies since Ronald Reagan, squeezing out nearly $50 billion over 10 years.

Trump’s budget would drastically cut domestic programs controlled by Congress, slashing $1.7 trillion over 10 years. At the end of the decade, the U.S. would spend nearly twice as much on defense as on other domestic programs. Domestic discretionary spending would be capped at $429 billion per year, below 2004 levels, while military spending soars to $722 billion.

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The White House plans to heavily promote its commitment to Social Security and Medicare, though its attempt to eliminate the federal deficit while largely preserving those entitlement programs — which together make up the bulk of federal spending — will leave behind a path of destruction for other safety net programs.

Trump’s budget would tighten the belt on programs for low-income families ranging from cash assistance to the child tax credit. Nearly $200 billion in cuts will come directly from the federal food stamp program, which helps feed 44 million people each year.

Trump would also slash $72 billion by tightening the rules for programs for people with disabilities — programs that Trump’s advisers have described as riddled with fraud and abuse. A federal watchdog, however, found last year that 17 anti-fraud programs already exist.

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“Candidate Trump campaigned as a populist, said he wanted to help the working people, but since he has taken office he has governed like a hard-right conservative — pushing policies that help the uber wealthy at the expense of the middle class,” Senate Minority Leader Chuck Schumer said in a statement Sunday night.

“It’s a complete about-face,” said Seth Hanlon, a former economic adviser to Barack Obama. “It’s a betrayal of a lot of people who put their faith in him.”

But even some Republicans — both inside and outside Congress — say they’re worried about the sheer magnitude of the proposed cuts.

“I’m deeply concerned about the severity of the domestic cuts,” Rep. Hal Rogers (R-Ky.), a long-time member of the powerful House Appropriations Committee, told POLITICO on Friday.

Rogers has been an outspoken critic of Trump’s proposed cuts to programs that benefit rural regions like his home state, like the Appalachian Regional Commission.

“I think we do need healthcare reform. I think we do need welfare reform. But the kinds of reductions that he’s talking about go exactly against the states that brought [Trump] to the dance, so to speak,” said G. William Hoagland, a former long-time Republican Senate budget aide.

Perhaps Trump and GOP supporters will eventually wake up. When they’re screwed until it really hurts. As the multimillionaires and billionaires benefit bigly. Trump’s real plan all along apparently.

More BELOW THE FOLD.

The Trump Tax Plan…

Remember Voodoo economics, a phrase coined by George Hebert Walker Bush back in the “80’s”? If you do you’ll likely thinks as we do here, that our make-believe POTUS has come up with a new version of voodoo economics. Of course specifics are very sparse and policy wonks will ne having a ball. But in the meantime all the armchair economists can have some fun with what appears to be the plan to ultimately break America for good. While the assumptions and the projected benefits resulting from said assumptions sound great the devil is in the details,and those are something is in very short supply.

Brief summary from The Washington Post.

Many budget experts say they believe the White House’s plan would reduce federal revenue by so much that it would grow the debt by trillions of dollars in the next decade, growing interest costs and slowing the economy.

The central feature of the White House’s plan would be a big reduction in tax rates for virtually all Americans and businesses.

It would eliminate the seven existing income tax brackets and replace them with three brackets, containing new rates of 10 percent, 25 percent and 35 percent, based on someone’s income.

It would also roughly double the standard deduction that Americans can use to reduce their taxable income. The deduction for married couples would move from $12,600 to $24,000.

The White House plan would eliminate the alternative-minimum tax and the estate tax, provisions that raise billions of dollars each year but have long been the target of Republicans seeking to rip up the tax code.

To offset some of the cost of the lower rates, Trump administration officials said they were proposing to eliminate virtually all tax deductions that Americans claim, provisions that they argued primarily benefited wealthier Americans.

This includes the tax deduction people can claim for the state and local taxes they pay each calendar year. These taxes can be particularly high in states with higher income taxes, such as California and New York.

For businesses, Trump’s proposal would lower the corporate tax rate from 35 percent to 15 percent, and it would also allow smaller businesses, structured in such a way that they are affected by the individual tax rate, to also use the 15 percent threshold.

But they can also include large law firms and lobbying shops.

“We expect that trillions of dollars will come back on shore and will be reinvested here in the United States, for capital goods and job creation,” Mnuchin said.

The trouble Trump has is that while his administration says the tax cuts will over time pay for themselves, Congress’s nonpartisan budgetary referees at the Joint Committee on Taxation won’t work off that same assumption.

Full article CONTINUES HERE.

We’ve Heard This Song And Dance Before…

Treasury Secretary Steven Mnuchin said economic growth resulting from the proposed tax cuts would be so extreme that it would come close to recouping all of the lost revenue from the dramatic rate reductions.

Here they go again. Remember the Reagan era when a rising tide lifts all boats was the sell and trickle down economics,  aka Reaganomics was the official economic policy of the government? Well, we all know today just who really benefitted and how it really worked out for the middle class don’t we? Economic stagnation for most of us with wealth flowing to the very top.

Excerpt from The Washington Post:

The Trump administration plans to rely on controversial assumptions about economic growth to offset steep cuts to business and individual tax rates, a chief architect of the plan said Thursday.

Treasury Secretary Steven Mnuchin said the economic growth that would result from the proposed tax cuts would be so extreme – close to $2 trillion over 10 years – that it would come close to recouping all of the lost revenue from the dramatic rate reductions. Some other new revenue would come from eliminating certain tax breaks, although he would not specify which ones.

“The plan will pay for itself with growth,” Mnuchin said at an event hosted by the Institute of International Finance.

Assuming economic growth based on changes to the tax code is known as “dynamic scoring,” and many conservatives embrace its use when arguing for lower rates. But estimating the future economic impact of tax cuts is very difficult to do, as it requires policy makers to rely on economic forecasts that are often imprecise.

And even if the White House has rosy estimates about the economic impact of the tax cuts, the administration could run into trouble as any plan moves through Congress. That’s because Congress relies on tax analyses performed by the Congressional Budget Office and the Joint Committee on Taxation, which tend to have a more restrained view on the macroeconomic effect of tax cuts.

“We have some evidence about how big these effects can be,” said Donald Marron, a former CBO official who is director of economic policy initiatives at the Urban Institute. “They are not zero, but they are modest.”

President Trump believes the tax code is too complicated and tax rates are too high, and he has made overhauling the tax code one of his top priorities. But simply cutting taxes — lowering the rates that businesses pay and that individuals pay — is difficult for lawmakers because of congressional budget rules. Most Democrats will not support a tax plan that simply cuts tax rates, and Republicans have a narrow 52-to- 48 advantage in the Senate. (continue reading)

While the tax code is arguably too complicated, it is, cutting taxes by lowering rates on business and individuals is simply not going to achieve the long-term results Trump believes it will. Rather history has shown it will result in greater wealth concentration at the pinnacle of the economic pyramid and eventual stagnation for the middle class.

 

Economy Continues To Be Strong…

Overall things continue to improve. While presidents have little short-term influence over economic growth the policies and legislation they are responsible for do have a long-term effect. So, thank you President Obama for guiding us out of the worst economic mess since the Great Depression.

Hopefully Trump can oversee a continuation. We’ll have to wait and see.

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