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National Govt & Politics
Trump budget projects four straight deficits over $1 trillion
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Trump budget projects four straight deficits over $1 trillion

Trump budget projects four straight deficits over $1 trillion

Trump budget projects four straight deficits over $1 trillion

As President Donald Trump sent Congress on Monday a $4.7 trillion budget proposal for 2020, the estimates of his own budget experts predict that this spending plan will result in four straight years of deficits exceeding $1 trillion, with no budget surplus until the mid-2030's.

After a deficit of $779 billion in Fiscal Year 2018, the President's new budget plan forecasts four more years of even higher levels of red ink.

2019 - $1.092 trillion

2020 - $1.101 trillion

2021 - $1.068 trillion

2022 - $1.049 trillion

The White House budget document shows the deficit dropping to an estimated $909 billion in 2023.

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The higher deficit figures come even as the White House projected a growing amount of revenues coming in for Uncle Sam as a result of the 2017 GOP tax cut plan, as officials said the problem is not taxes, but the level of government spending.

'We don't think the tax cuts are going to lead to anything other than economic growth over the next ten years," a senior White House official told reporters on Monday morning.

After revenues were basically flat from 2017 to 2018, the official predicted the feds would see growth of 6 percent in money coming into the Treasury in 2020, as compared to 2019.

Part of the President’s 2020 budget plan would make the GOP tax cut permanent for individuals - the business part of that tax package was permanent, but the income tax cuts and other items impacting individual taxpayers end in 2025.

Still, for the President - and his chief aides - the big problem is spending, not tax revenues, as the White House said the 2020 budget was a ‘fiscally responsible and pro-American budget.’

While GOP supporters of the President like Rep. Jim Jordan (R-OH) touted today’s budget plan - the declaration that the Trump budget will result in a balanced budget won’t be happening anytime soon.

In the next ten years, the 2020 Trump budget estimates that another $7.2 trillion would be added in deficits, pushing the national debt towards the $30 trillion mark.

“Under reasonable economic assumptions, we find it would add about $10.5 trillion to the national debt over 10 years,” said the watchdog group, the Committee for a Responsible Federal Budget.

“It's quite an achievement for the President's budget to have fantastical economic assumptions, massive & unprecedented cuts to domestic discretionary spending, and *still* manage to end up with trillion dollar deficits for the next four years,” tweeted Shaki Akabas, an economic expert at the Bipartisan Policy Center in Washington.

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The Latest Headlines You Need To Know

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Washington Insider

  • The struggle between Democrats in the House and President Donald Trump over the Russia investigation intensified on Monday with the White House telling former Counsel Don McGahn not to honor a subpoena for  his testimony on Tuesday before the House Judiciary Committee, as Democrats said it was all part of a broad effort the President and the Trump Administration to stonewall Congress about the Mueller Report and other investigations. In a letter to Democrats, McGahn's lawyer William Burck said, 'the President has unambiguously directed my client not to comply with the Committee’s subpoena for testimony.' 'Under these circumstances, and also conscious of the duties he, as an attorney, owes to his former client, Mr. McGahn must decline to appear at the hearing,' the letter added. Democrats said they would still convene the hearing at 10 am EDT on Tuesday, as they held out the possibility of finding McGahn in contempt, just as the same committee voted to find Attorney General William Barr in contempt for refusing to honor a subpoena for an unredacted version of the Mueller Report. Democrats wanted testimony from McGahn because of the information he gave to investigators for the Mueller investigation, in which McGahn detailed repeated demands by President Trump to oust the Special Counsel. While President Trump has sternly denied that he ever ordered McGahn to get rid of Mueller, the evidence offered by the Special Counsel painted a different picture. McGahn testified that the President called him on June 17, 2017 - about a month after Mueller had been named as Special Counsel - and pressed for Mueller to be ousted, an order that McGahn repeatedly ignored. On page 300 of the Mueller Report, 'McGahn recalled the President telling him 'Mueller has to go' and 'Call me back when you do it.''  The Mueller Report described McGahn - who reportedly answered questions for 30 hours over multiple interviews - as a 'credible witness with no motive to lie or exaggerate.' McGahn also claimed in his testimony that once news of the President's request was reported in the press, Mr. Trump then pressed McGahn to dispute the veracity of the story that the President had pressed for Mueller's ouster. McGahn refused to do what the President had asked. The White House based its refusal for McGahn to testify on a new 15 page legal opinion from the Justice Department, which said McGahn - as a former top adviser - was under no requirement to testify before Congress. 'The President's immediate advisers are an extension of the President and are likewise entitled to absolute immunity from compelled congressional testimony,' the Office of Legal Counsel opinion stated. In summary, the Justice Department said simply, 'we conclude that Mr. McGahn is not legally required to appear before the Committee.' Democrats denounced the decision, and charged it was just adding more evidence to what they say is a cover up, focused on obscuring obstruction of justice by President Trump. 'This move is just the latest act of obstruction from the White House that includes its blanket refusal to cooperate with this Committee,' said Rep. Jerry Nadler (D-NY), the Chairman of the House Judiciary Committee. 'The President is intimidating witnesses and stonewalling the American people and the rule of law. Congress and the American people deserve answers from Mr. McGahn,' said Rep. Mary Gay Scanlon (D-PA). '(T)he White House Counsel serves interests of the American people, not the President, and their conversations do not have the protection of blanket attorney-client privilege,' said Rep. Don Beyer (D-VA). 'It’s pretty clear what the Trump Administration is doing here,' said Sen. Chris Coons (D-DE), 'they’re trying to hide the facts from the American people.' Democrats have promised to move forward to hold McGahn in Contempt of Congress - but there has also been discussion of other penalties, from what is known as 'inherent contempt' - which could involve levying fines against those who refuse to cooperate with investigations by Congress. 'The cover-up continues,' said Rep. Adam Schiff (D-CA). 'And we will fight it.