federal budget

  • Article: "Zero sums"      

    Mick Mulvaney, the White House budget director, has delivered a budget proposal to Congress. Entitled “A New Foundation for American Greatness”, it leaves Social Security, Medicare and military spending alone, but slashes everything else (the non-defense discretionary spending) by 40%. Medicaid would be cut by half, food stamps by 25%. Combining these cuts with a robust 3% annual growth prediction would eliminate any budget deficits in ten years.

    > Problem: the extra $2 trillion in tax revenues generated over a decade by the unlikely 3% growth estimate has already been earmarked by a massive tax cut. Another problem: Mulvaney’s budget counts on increased revenues from the inheritance tax in one section while promising to abolish it in another.