WASHINGTON -- A new government analysis of President Donald Trump's budget plan says it wouldn't come close to balancing the federal ledger like the White House has promised. Thursday's Congressional Budget Office report says that Trump's budget, if followed to the letter, would result in a $720 billion deficit at the end of 10 years instead of the slight surplus promised. CBO said Trump's budget would reduce the deficit by a total of $3.3 trillion over 10 years instead of the $5.6 trillion deficit cut promised by the White House. The nonpartisan scorekeeper estimated that deficits in each of the coming 10 years will exceed the $585 billion in red ink posted last year. CBO says that Trump relied on far too optimistic predictions of economic growth and that Trump's rosy projections are the chief reason his budget doesn't balance as promised.
The White House on Tuesday vigorously defended President Trump's $4.1 trillion budget proposal that would cut entitlements and other domestic programs while boosting military and border security spending, saying the plan represents Trump's campaign promises "put on paper." "There's not a single thing [cut] from Social Security or Medicare," White House budget Director Mick Mulvaney stressed. Because that's what he promised." But a range of other programs, from Medicaid to food stamps, would be cut under the fiscal 2018 budget blueprint. In the face of swift and stiff Democratic opposition, Mulvaney told reporters that the Trump administration is taking a new approach to government spending.
The U.S. Capitol Building is lit at sunset in Washington, U.S. REUTERS/Joshua Roberts Congressional analysts Tuesday projected that President Donald Trump has inherited a stable economy and a government that is on track to run a $559 billion budget deficit for the ongoing budget year. The new estimates from the nonpartisan Congressional Budget Office say the economy will hold relatively steady, with economic growth rising slightly to 2.3 percent this year and unemployment averaging less than 5 percent for the duration of Trump's term. Trump is promising higher growth as his administration curbs regulations, overhauls the tax code, and repeals the Affordable Care Act, former President Barack Obama's signature accomplishment. The latest CBO figures are in line with previous projections. The deficit continues to be intractable and CBO continues to warn that rising deficits and debt "would have significant consequences" and act as a drag on the economy if left unchecked.
President Trump in his first full budget says he will produce a surplus in a decade, though his fiscal pathway relies on projections of growth more optimistic than government and private-sector economists expect and deep cuts in anti-poverty programs such as Medicaid. The budget to be released Tuesday will show that the annual federal deficit, which was $585 billion in the fiscal year that ended Sept. 30, will steadily decline until fiscal year 2027, when the nation will have a $16-billion surplus -- the first since the start of the George W. Bush administration, though small in the context of what by then would be a nearly $6-trillion budget. Nonpartisan budget watchers and even many Republicans are sure to be skeptical. Trump promises to reach balance and even produce a small surplus while he is calling for the deepest tax cuts in history, hefty increases in military and homeland security spending, and no reductions in Medicare and Social Security, the entitlement programs that are a main driver of projected federal debt because of the aging population. According to budget documents made available to the Los Angeles Times, Trump would balance the budget in two ways.
Budget Director Mick Mulvaney holds up a copy of President Donald Trump's proposed fiscal 2018 federal budget as he speaks to members of the media in the Press Briefing Room at the White House in Washington, Tuesday, May 23, 2017. Budget Director Mick Mulvaney holds up a copy of President Donald Trump's proposed fiscal 2018 federal budget as he speaks to members of the media in the Press Briefing Room at the White House in Washington, Tuesday, May 23, 2017. Graphic shows Trump FY 2018 budget breakdown; 2c x 6 1/2 inches; 96.3 mm x 165 mm; Graphic outlines budget assumptions; 2c x 6 inches; 96.3 mm x 152 mm; Graphic shows Trump FY 2018 budget breakdown; 2c x 6 1/2 inches; 96.3 mm x 165 mm; WASHINGTON (AP) -- Top officials in President Donald Trump's Cabinet are heading to Capitol Hill to defend his plans to cut domestic programs and parry Democratic criticism of his tax proposals. The plan, Trump's first as president, combines $4.1 trillion for the upcoming 2018 fiscal year with a promise to bring the budget back into balance in 10 years, relying on aggressive spending cuts, a surge in economic growth -- and a $2 trillion-plus accounting gimmick.