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cashgazette.com June 28, 2017


Mulvaney defends Trump budget's social safety net cuts

26 May 2017, 06:46 | Archie Newman

In general, Trump's project will reduce or eliminate trillions of dollars in taxes that are paid by the rich mainly, including the tax on assets and the marginal rate on the ordinary income paid by the richest taxpayers.

In Alabama, participation in the SNAP program had increased by 167 percent since 2000, one of the highest in the country.

The plan, Mr Trump's first as president, combines $4.1 trillion (£3.1 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, and a surge in economic growth.

Mulvaney is the driving force behind the Trump budget plan, winning the president's approval for big cuts to benefit programs whose budgets are essentially on autopilot. Transportation Secretary Elaine Chao said at a recent hearing that money for the grants could be put back into the transportation system in a more "holistic" way.

In addition to the widespread cuts, the budget also contains a rather large accounting mistake.

Congress is unlikely to approve such deep cuts in the program, since it affects constituents so broadly.

"When you say cut are you speaking Washington or regular language?"

Trump trounced Democrat Hillary Clinton in the 2016 election in Kentucky, 63 percent to 33 percent, winning every region except the urban Louisville and Lexington areas.

It is true that, as White House Budget Director Mick Mulvaney said in defending the budget, "There's a dignity to work", but it is largely a myth that assistance programs discourage recipients from seeking employment.

It is unclear if the Republican-controlled House and Senate will be able to pass a budget blueprint for the fiscal year starting on October 1. The bill would need 60 votes in the Senate, and Democrats have strongly opposed any changes to the program. Trump's own base of political support also could be undermined. If this budget were enacted, more elderly Americans could be forced to go from assisted living to living on the streets.

Funding for the National Institutes of Health would decrease by almost $6 billion in the next fiscal year.

Brown said the additional money toward school choice is welcome, but can be hard to implement properly while adequately funding programs already in place.

"I don't know that your priorities are much different from my priorities for USDA", he told Aderholt.

The plan is laced with $3.6 trillion in cuts to domestic agencies, food stamps, Medicaid, highway funding, crop insurance and medical research, among others. But the Republican budget likely to emerge will most certainly slap the poor and working families. But numerous states where residents rely most heavily on food stamps are also states where support for the president is strongest. In fact, they would impede economic growth. States would receive significantly lower overall payments from the federal government, and Washington would no longer match state spending on coverage for kids whose families make more than two-and-a-half times the federal poverty level, about $51,000 for a family of three.

"We don't cut Medicaid". "Meals on Wheels, even for some of us who are considered to be fiscal hawks, may be a bridge too far", he said.

The proposed budget will increase military spending by 10 percent and includes $1.6 billion for the beginning of the U.S. The cut represents a 25 percent reduction in the program and would affect each county in the Yellowhammer state, according to U.S. Department of Agriculture (USDA) and Alabama Department of Human Resources (DHR) data. Members of Congress will surely hear from constituents anxious that it has the wrong priorities-and that it may not convincingly address some of its stated goals, including deficit reduction, moving more Americans into the workforce and making a serious effort to discern the efficacy of safety-net programs rather than to cut them indiscriminately.



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