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National Govt & Politics
Trump plan envisions balanced budget in 15 years
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Trump plan envisions balanced budget in 15 years

Trump plan envisions balanced budget in 15 years

Trump plan envisions balanced budget in 15 years

With over $2 trillion added to the federal debt since he took office just over two years ago, President Donald Trump will deliver a spending plan to the Congress on Monday which is certain to spur a sharp debate with Democrats over proposed cuts in domestic spending programs, but won't come close to producing a balanced budget for more than a decade.

"It is time for Congress to join the president in his commitment to cutting spending, reducing bloated deficits, and getting our national debt under control. America’s future generations are depending on them," said Russ Vought, the acting chief of the White House budget office.

But, so far, President Trump's time in office has seen the growth in the deficit accelerate, from $584 billion in President Obama's last full year in office in 2016, to $779 billion in 2018.

As of January, the deficit in 2019 was running 77 percent higher than a year ago, as even White House budget estimates have forecast a yearly deficit over $1 trillion in coming years.

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Trump plan envisions balanced budget in 15 years

Here's some of what to look for in Monday's budget submission, which is titled, "A Budget for a Better America."

1. Domestic spending cuts, back door increase for defense. With no deal as yet to avoid budget caps from a 2011 deficit law, spending in 2020 would be limited on defense to $576 billion, and $542 billion for domestic programs. But the President wants much more for the military, so the Trump Administration will reportedly propose spending a massive $174 billion for the "Overseas Contingency Operations" fund - an increase of $106 billion - for a total military budget of $750 billion. Budget watchdog groups say the idea is a big, fat budgetary gimmick, nothing but a slush fund for the Pentagon.

2. Trump to request $8.6 billion for the border wall.
With no confirmed details yet on how the President will shift around some $6.6 billion in the Pentagon budget to fund construction of his border wall, Mr. Trump will reportedly ask Congress to approve $8.6 billion for the wall in 2020. Democrats had a simple reaction on Sunday. "No," said Sen. Brian Schatz (D-HI). "No," said Rep. David Cicilline (D-RI). "Dead on arrival," said Rep. Mike Quigley (D-IL). Even after a 35 day partial government shutdown earlier this year, the President received $1.375 billion for barriers - but not a wall, and there seems to be little chance that dynamic will change for Democrats in the 2020 budget debate. "Congress refused to fund his wall," Speaker Nancy Pelosi tweeted on Sunday. "The same thing will repeat itself if he tries this again."

3. Goal for a balanced budget would be 2035.
Even if President Trump serves two terms in office, his own White House doesn't forecast anything close to a balanced budget. The last official budget estimates from the White House in July of 2018 - which will be updated with this new budget proposal - predicted the deficit would peak over $1 trillion for three years, and then finally get below $500 billion by 2027, adding almost $8 trillion in deficts along the way. More conservative Republicans in the House aren't worried by those details, as they say the President has shown "fiscally conservative leadership," even though the debt has already increased by more than $2 trillion during his two plus years in office.

4. Not all the details, and already behind schedule. President Trump was supposed to have sent this budget to Congress by the first Monday in February - but today will only bring the basic highlights, not all the nitty gritty details of the proposal. Part of the reason is that the 35 day partial government shutdown delayed a lot of work in government agencies. All of the spending work is supposed to be done by Congress each year by September 30 - but that's only happened four times since the budget process was reformed in 1974. Congress has six and a half months until the deadline - it's hard to see how lawmakers avoid more stop gap funding plans - and maybe another shutdown as well.

5. A new dynamic with divided control of Congress.
In the first two years of the Trump Presidency, Republicans in the House and Senate were in charge - but now, Democrats will have first crack at the President's budget, and they are certain to take a much different road. In a sense, that's a good thing for Mr. Trump, giving him the chance to battle it out with Democrats more clearly on budget priorities. But it also amplifies the chance for a government shutdown on October 1. Speaker Pelosi likes to say that a budget is a 'statement of values.' After the Trump budget gets delivered to Congress, the next move will be up to Democrats in the House, to forge their on budget outline for 2020. There are political pitfalls ahead for both sides.

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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.