Just In: Trump’s Proposed Budget Will Actually CUT the Debt Ratio
Mulvaney States That This Will Actually Lower the Debt Ratio
The second budget proposal from the Trump White House is set to lower the budget by “$3 trillion dollars over a ten year period,” according to the White House. This would, if evenly cut, result in a $300 billion cut to the budget every year for that ten year period.
The budget proposal from the Trump White House last year, authored by Office of Management and Budget Director Mick Mulvaney, would have lowered spending by $3.5 trillion dollars and balanced the budget over ten years. It would have achieved this goal by making cuts to domestic spending programs and welfare.
Congress has panned cutting the budget so far, as the country enters into the second year of the Trump Presidency, having just passed a deal that would add $320 billion to the deficit over the next two years.
“As a nation, we face difficult times – challenged by a crumbling infrastructure, growing deficits, rogue nations, and irresponsible Washington spending,” Director Mick Mulvaney said in a statement Sunday evening. “Through this budget proposal, it is clear that the President and this Administration are determined to reverse these trends, and ensure greater prosperity for the hard-working American taxpayer.”
“Just like every American family, the Budget makes hard choices: fund what we must, cut where we can, and reduce what we borrow,” Mulvaney said in his statement. “It’s with respect for the hard work of the American people that we spend their tax dollars efficiently, effectively, and with accountability.”
On Monday morning, the President is submitting the plan to Congress, entitled “Efficient, Effective, Accountable: An American Budget.”
Today, the federal debt is around 75 percent of the country’s gross domestic product, up from around 34 percent prior to the financial crisis. Like last year’s budget, which claimed to lower the debt below 60 of the US GDP, this year’s budget claims that Trump’s plan will also lower the debt. The Office of Management and Budget has declined to state how much the 2019 budget will lower the ratio.
Trump’s budget for 2019 will include:
- $200 billion in infrastructure spending that Trump projects will produce 1.5 trillion dollars in infrastructure spending from public and private sources over the next ten years
- $23 billion for border security
- $18 billion will be set aside for wall construction on the southern border
- $782 million to hire 2,750 more law enforcement officers and agents at Customs and Border Protection and Immigration and Customs Enforcement
- $2.7 billion to pay for 52,000 illegal immigrants to be held in federal custody at any one time
- Cutting federal regulations to allow projects to be built faster
- $85.5 billion to improve medical care for veterans.
- $17 billion to fight the opioid addiction crisis in the United States
- $3 billion in new funding in 2018
- $10 billion in new funding in 2019