No Medicaid cuts in Trump budget? Really?

Trump's balanced-budget goal depends not only on 3 percent growth projections that most economists view as overly optimistic but also a variety of accounting gimmicks, including an nearly $600 billion peace dividend from winding down overseas military operations and assuming that overhauling the tax code in a way that provides no net tax cuts would spark that growth and generate more than $2 trillion in higher revenues. All these programs were deemed a waste of taxpayer's money and have produced little positive results. What it does is perpetuate a myth that we can go out there and balance the budget without touching entitlements. Trump says this notion has got it backwards.

Democratic defenders of the program warned that would deny health care and nursing home care to millions of people.

Mulvaney, a former tea party congressman, is the driving force behind the Trump budget plan, winning the president's approval for big cuts to benefit programs whose budgets are essentially on autopilot.

Democrats criticized a proposal for an nearly 30 per cent cut in food stamps. No one wants to be poor, but based on recent quotes from the budget director and the presentation of this budget, it seems like the President fundamentally believes otherwise.

If tax receipts are coming in slower than expected, this could raise pressure on lawmakers to raise or suspend the debt ceiling by the August recess. This benefited up to 20 million Americans, and Obama claimed that as a major success. States would receive significantly lower overall payments from the federal government, and Washington would no longer match state spending on coverage for kids whose families make more than two-and-a-half times the federal poverty level, about $51,000 for a family of three. "We are not spending less money one year than we spent before".Treasury Secretary Steve Mnuchin, meanwhile, sat down with CNBC's John Harwood, who asked the Trump cabinet secretary to respond to the concerns.

In fact, during the 8 years of the Obama administration, United States economic growth averaged just above 2 percent annually. Without that opportunity, marginally employable workers had to drop out of the labor market.

Trump's budget forecasts 3% growth every year from 2021 to 2027.

Copies of President Trump's fiscal 2018 federal budget at Capitol Hill in Washington. Trump has also removed burdensome regulations that have been impeding economic progress and job-creating growth.

But even taking all benefits from the poor and the working class wouldn't make a budget balance, particularly if Social Security and Medicare aren't chopped. "Can you guess the last time we had an unemployment rate of 4.8 percent, growth at 3 percent and inflation held at 2 percent?" That figure could prove to be below what will actually transpire.

"The foundation for the plan is 3% growth". That means fewer Americans will need food stamps and welfare, reducing government outlays even further.

Mulvaney defended the budget in a Tuesday press conference, saying that he's "aware of the criticisms and would simply come back and say there's other places where we were probably overly conservative in our accounting".

A reality check by economists finds the presidential predictions somewhat unreliable.

"What about the standard of living for my grandchildren who aren't here yet?" Trump's budget will begin to do what is needed to achieve growth in spite of the steady diet of negative commentaries streaming daily from the mainstream media.

The administration has privately informed GOP leaders that it would like Congress to act before the annual August recess.