Nel's New Day

May 24, 2017

Worst Budget Ever

While Dictator Donald Trump (DDT) left the country, his top officials delivered the proposed 2018 budget to Congress with $1.4 trillion cuts against everyone except the wealthy and large corporations. The winner is the military and increased defense for waging war throughout the world.

Budget Director Mick Mulvaney tried to defend the document in a press conference. These are his talking points:

Instead of a budget, the document is tax cuts. Mulvaney said that the title should be “A Taxpayer-First Budget” instead of “The New Foundation for American Greatness.”

The plan is based on “compassion.” The “compassion” is only for people paying taxes.

DDT-economics demands a three percent growth. (Actually, it requires a 4.5 percent growth.)

The money goes for police, military, and border walls. That’s $54 billion that needs to be taken from helping people.

Only people in uniform deserve safety nets. All people other than veterans—disabled, students, etc.—are freeloaders.

Corporate privateers aren’t freeloaders. That’s the reason that education money is transferred to for-profit corporations running charter schools.

Spending freezes don’t apply to cuts.  “We are not spending less money one year than we spent before. What we are doing is growing Medicaid more slowly over the 10-year budget window than the Congressional Budget Office says that we should or says that we will under current law.”

Medicaid should be privatized or rationed block grants. States can provide it much cheaper than the federal government. (Cynical comment: That’s because they don’t provide services but put those grants into their general fund for something else.) The $800 billion cut for Medicaid of 47 percent will lead to “a better way.” (Cynical comment: That’s because it takes 23 million people off insurance.) Mulvaney said that breaking DDT’s promise about not reducing Medicaid isn’t important because it wasn’t that important.

The government could collect $500 billion in uncollected taxes. But Mulvaney thinks it’s not a good idea to collect that money because taxes are too complicated for people to know what to pay.

The EPA cuts are anti-climate science, but that’s not anti-science.  The new plan spends less on the environment (31 percent!) to reduce a focus on climate science. “Does it mean that we are anti-science? Absolutely not!” (Cynical comment: I can’t think of anything to say.)

There will still be a border wall. That was a DDT promise.

People on SSDI—disability—aren’t really on Social Security, and they aren’t really disabled. “It is a welfare program for the long-term disabled…. There are people who are getting SSDI who should not be getting it.”

People pretend to be hungry. People shouldn’t have food stamps because economic statistics show that the 2008 recession is over. (At least one Republican thinks that the economy is better—just for the wrong reason.

DDT’s budget reflects the values of Robert Mercer, the man who bought the presidency for him. The billionaire hedge-fund manager believes that “human beings have no inherent value other than how much money they make,” “if someone is on welfare they have negative value,” and the government violates nature’s sacred hierarchy when it “helps the weak people get strong, and makes the strong people weak by taking their money away.” It’s Ayn Rand’s fiction controlling what used to be the greatest nation in the world.

Hard to believe, but there’s a bigger problem with Mulvaney’s budget: he counted $2 trillion twice, once anticipating a three-percent economic growth and the other one neglecting projected tax cuts. In one example of the problem, DDT promised to eliminate estate taxes of over $300 billion, but the budget lists this as revenue. To achieve the budget, the economic growth would have to be 4.5 percent—2.5 times the projected growth from the Congressional Budget Office. President Clinton achieved over 4 percent during his second term with tax increases, but George W. Bush’s tax cuts and two wars took the rate down to a minus .3 percent. The first quarter of 2017 grew at a .7 percent annual rate, the lowest in three years.

Mulvaney isn’t concerned about a $2 trillion budgeting mistake. In fact, he thinks it doesn’t exist. Treasury Secretary Steve Mnuchin said that it’s a “preliminary document.” So no problem. (Mnuchin is the same person who made a $100 million mistake on his financial disclosures to the Senate before his confirmation.) The Treasury Secretary also claims that the abolition of the estate tax and reductions to rates on capital gains and income will provide “no absolute tax cut for the upper class,” maybe the most unrealistic perspective connected to the budget. The CBO estimates that these tax cuts would decrease revenue between $3 and $7 trillion during the next decade.

History proves that tax cuts for the wealthy don’t increase economic growth. The cuts also never fulfill the promises that they cause massive investment to help all. Corporations and the wealthy already possess a great deal of assets which they don’t invest in new enterprises and increase costs of real estate—like DDT does.

Red states that voted for DDT are hurt the worst by his budget. This source shows the way individual states are hit with his draconian cuts in food stamps, help for children and disabled, Medicaid—even farm insurance. Last August, DDT tried to woo black voters by say that they would be so impressed by what he does for them that he would get 95 percent of their votes in 2020. This month’s poll gives him a 12-percent approval rating among black people, one that will probably go down after his budget cut eviscerate their safety net.

The budget is so huge that it’s impossible to list all the horrible pieces of it. In the next decade, working families will lose $3.6 trillion in benefits and services while tax cuts of $6.2 trillion will go primarily to wealthy corporations and individuals. The deficit will grow by $7 trillion. Specific details are available here. The budget would totally eliminate these 66 programs. that the budget would totally eliminate. Axios also has an excellent overview of the disaster.

It’s not as if DDT’s budget has a good chance of passing. Republican lawmakers have responded negatively: “dead on arrival” (Sen. John Cornyn, R-TX); “anti-Nevada” (Sen. Dean Heller, R-NV); “terrible” (Sen. Lindsay Graham, R-SC); “I have some concern” (ultra-conservative Secretary of Agriculture Sonny Perdue); and “went too far” (House Freedom Caucus Mark Meadows, R-NC about cutting Meals on Wheels). But a White House budget shows a president’s policies—or at least those who are writing DDT’s policies.

One success DDT may have is selling off the nation’s assets so he will look as if he’s doing a good job. In addition to privatizing many governmental activities such as airport security, DDT is trying to put public lands and power transmission assets such as those administered by Bonneville Power Administration. As of October 2014, Bonneville paid the government $24.8 billion provided by ratepayers and receives no money from the federal government. The annual payment is now approximately $1 billion a year, thus Bonneville costs the federal government nothing and earns them about $1 billion annually. Rep. Greg Walden, Oregon’s only GOP congressional member, did not comment, but his office stated that the idea “demonstrates President Trump’s commitment to balancing the budget and responsibly prioritizing taxpayer dollars.” Private companies would likely raise costs Bonneville’s 12 million customers.

Luckily, DDT has no idea how to get legislation passed. History shows that his only MO is bullying. Typically the introduction of a budget begins with a president’s State of the Union speech revealing major policy proposals followed by leaks of details and trial balloons before high economic officials sell the plan to the public. After the budget is sent to Congress, the president holds a press conference to brag about his proposals, and federal departments and agencies hold briefings the same day for reporters. Cabinet members appear at congressional hearings on their budgets. The weekend talk shows then use the budget as the principal topic. None of this has happened.

As a business man, DDT relied on his public image of wealth and glamour to negotiate scams. If one deal fell through, he always found other marks. In his current position, he has 535 partners—no one else if he loses them. If he wins, people in the U.S. will get only a wall—which he promised would be supplied by Mexico—and never-ending wars around the planet.

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