Republican Budget to Increase U.S. Budget Deficit
Senate Republicans may have finally found a consensus on something. After failing to unite on the Obamacare repeal bill, they have finally reached an agreement on the fiscal budget. Republicans have agreed that the Republican budget will add to the U.S. budget deficit to help pay for President Trump’s tax plan.
The Senate voted on Thursday to pass a budget resolution for the next fiscal year. The Republicans won the votes with a 51-49 win to pass a budget supporting Trump’s proposed tax cuts.
The President hailed the successful passage of the Republican budget on Twitter, saying the country will now see the biggest tax cuts in its history.
….This now allows for the passage of large scale Tax Cuts (and Reform), which will be the biggest in the history of our country!
— Donald J. Trump (@realDonaldTrump) October 20, 2017
Republican Budget to Add $1.5 Trillion to U.S. Budget Deficit
The proposed Republican budget will, however, add a whopping $1.5 trillion to the U.S. budget deficit in the next 10 years. That’s because the federal government will be losing all of those tax dollars from its revenue.
The Republicans contend that the tax cuts will boost economic activity in the country. According to them, the budget deficit will be more than compensated for by the economic growth resulting from the tax cuts.
However, most economists do not fully subscribe to their idea. In fact, independent studies have also found that Trump’s tax cuts disproportionately favor the rich. This is exactly the same view shared by the Democrats, all of whom voted “No” to the budget proposal on Thursday.
Senator Bernie Sanders, an independent ranking member of the budget committee, has been vehemently opposing the Republican budget proposal. Sanders has called it a “Robin Hood proposal in reverse.”
— Anderson Cooper 360° (@AC360) October 19, 2017
Sanders says, “What the entire GOP proposal is about is giving tax breaks to people who don’t need it by making cuts to education, housing and health care.”
Republicans have already shared their plans to cut Medicaid and Medicare spending to pay for the tax cuts. Other critical government programs supporting education and housing also face similar cuts as the Republicans vote to cut back federal spending.
For Americans, Trump’s tax cuts are now appearing to be a double-edged sword ready to fall on their heads.
“Senate Republicans approve budget with $1.5-trillion deficit to pay for Trump’s tax cuts,” Los Angeles Times, October 19, 2017.