Deficit complicates Trump's big plans
WASHINGTON — President-elect Donald Trump promises big tax cuts, a border wall and massive spending on infrastructure. That’s a recipe for bigger deficits that conservative fiscally-minded 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 will get everything their own way.
Trump’s tax cut, estimated to cost almost $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.”
On the spending side of the ledger, Trump’s promises 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.”
The flip side involves long-standing 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.