Study: Trump budget would increase debt

Study: Trump budget would increase debt
© Greg Nash
 
President Donald TrumpDonald John TrumpDems flip Wisconsin state Senate seat Sessions: 'We should be like Canada' in how we take in immigrants GOP rep: 'Sheet metal and garbage' everywhere in Haiti MORE’s budget proposal would increase the nation’s debt burden, according to a study by the Committee for a Responsible Federal Budget (CRFB) — far from the administration's stated goals of cutting the national debt and balancing the budget.
 
While the White House claimed that its budget would lower debt from the current 77 percent of GDP to a sustainable 60 percent over a decade, the CRFB study estimated that debt would continue to rise to 80 percent of GDP instead.
 
Experts and economists had slammed the proposal for unrealistic economic assumptions and accounting tricks. 
 
“Even these estimates assume the implementation of deep unspecified discretionary spending cuts, a costless tax reform, and double-counted Medicaid savings,” the group wrote in a post on the subject.
 
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Even so, the proposal would reduce projected debt levels from reaching more than 90 percent of GDP, as is projected under current law.
 
The study comes out a day before the Congressional Budget Office releases its official score of Trump’s budget, the standard that Congress uses.
 
On Wednesday, the White House tweeted an animated video undermining the CBO as inaccurate, a theme that administration officials have repeatedly sounded in hearings.
 
The effects of Trump’s proposal are becoming less relevant, however, as Congress begins to coalesce around budget plans that largely disregard the White House plan. 
 
Tentative numbers in the House Budget Committee, for example, raise both defense and nondefense discretionary spending significantly over Trump’s proposal, while mandating deeper cuts to mandatory spending. 
 
The House budget proposal, however, has yet to be released, even as House appropriators move to complete their markups next week. 
 
The Senate Budget Committee has been waiting for its House counterpart to act before moving ahead on its own plans, while the Senate Appropriations Committee will mark up its first bill on Thursday