Trump's big agenda could put GOP's budget goals out of reach

Image
AP Washington
Last Updated : Nov 23 2016 | 8:22 AM IST
President-elect Donald Trump promises big tax cuts, a border wall and massive spending on infrastructure.
That's a recipe for bigger deficits that fiscally minded conservative Republicans have railed against during President Barack Obama's tenure.
Trump's agenda runs counter to years of promises by congressional Republicans to try to balance the federal budget.
It's a marriage of conflicting priorities on the budget at least and that means that neither partner will get everything their own way.
Trump's tax cut, estimated to cost almost USD 5 trillion over 10 years, looks sure to be pared way back. Top lawmakers like House Ways and Means Committee Chairman Kevin Brady, R-Texas, and No 3 Senate Republican John Thune of South Dakota say the GOP's tax plans shouldn't add to the deficit. That would mean tax rates couldn't be cut nearly as sharply as Trump wants.
"We know we're going to have to pay for this," said Sen. John Cornyn of Texas, the No 2 Senate Republican. "The question is whether we do it now or whether we send it to our kids and grandkids and make them pay for it. So that's an important point that we need to achieve some consensus on."
On the spending side of the ledger, Trump's promises of a huge infrastructure plan are already running into difficulty with Republicans.
"We are not going to vote for anything that increases the national debt," said Rep. Raul Labrador, R-Idaho. "Fiscal conservatives in the House are not going to support anything that is not paid for."
Asked during an interview with The New York Times about possible pushback by GOP leaders on his costly infrastructure goals, Trump said, "Right now, they're in love with me," according to a tweet by Times reporter Maggie Haberman.
The flip side involves longstanding promises by Capitol Hill Republicans to balance the budget by repealing the Affordable Care Act, sharply cutting social programs like Medicare, Medicaid, food stamps and student loan subsidies.
Trump promises to replace the so-called "Obamacare" and assured voters during the campaign that he wouldn't cut Social Security and Medicare and he's on record as saying that 2012 GOP nominee Mitt Romney's choice of now-Speaker Paul Ryan, R-Wis, "was the end of the campaign."
"I said, 'You've got to be kidding' because he represented cutting entitlements, etc., etc. The only one that's not going to cut is me," Trump said at a February campaign stop.
Major reforms require presidential leadership - and as a candidate Trump didn't show much interest in attacking the budget.
"It's clear that deficits and spending retrenchment and entitlement reform was not what this election was about," said Neil Bradley, a former top House GOP aide who is skeptical of the party's ability to deliver major spending cuts.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Nov 23 2016 | 8:22 AM IST

Next Story