Anticipating Trump's Budget Proposal
We preview President Trump's first federal budget proposal. We've learned to expect the unexpected from Trump; will that trend continue when he releases his budget in the next few weeks? We examine which campaign promises may become reality, look at where tax cuts may apply, and examine the prognosis for the ACA, entitlements and immigration.
- Robert Bixby, Executive Director of The Concord Coalition, an organization advocating responsible fiscal policy. It was founded by a bipartisan group that included Senator Warren Rudman of N.H.
- Michael Ettlinger, Director of the Carsey School of Public Policy at UNH and formerly Senior Director for the Fiscal and Economic Policy Portfolio at the Pew Charitable Trusts.
The Concord Coalition has published an article on "12 Things to Look for in a Trump Budget Proposal"
We are beginning to get a sense of what President Trump’s budget proposal will look like, including increased defense spending coupled with cuts in domestic programs, major tax reform, a large infrastructure program, and a promise to leave social security and medicare untouched.
Bob Bixby says, “It’s good for a president to try to make his campaign promises come to fruition, however, we do have to make sure that we don’t make a fiscal situation much worse by abandoning fiscal discipline and just enacting a lot of tax cuts and spending increases”
Michael Ettlinger says another thing to look for is “whether he reiterates the claims on the levels of growth he expects his policies to result in. Most people don’t think those are realistic even in the most optimistic scenario.”
In recent remarks at a press preview of his budget priorities, President Trump suggested that he is nearly ready to unveil his plan to repeal and replace the Affordable Care Act:
“Changes need to be made to it, but it’s helped millions and millions of people...The implications for the budget are very substantial. They’re very against the tax increases that pay for it, but they can’t get rid of the tax increases without getting rid of the spending side of it that’s helping people without driving up the deficit," says Ettlinger.
“I think that politically, substantively, fiscally, they should have the replace at the same time they do the repeal, because if you just do the repeal it’s very disruptive to the healthcare system," says Bixby.