Republicans will raise the debt ceiling mid-March. Let's get some rallies going! We need signs saying the rich need to pay their fair share in taxes.
How would Trump's budget plans affect it?
Trump has yet to fill out many of the details of his administration's budget plans, which are expected by mid-March, roughly in line with most new administrations. Funding for the current fiscal year expires on April 28.
But based on his campaign pledges, many analysts say Trump's policies would be likely to significantly widen the budget deficit.
- Trump has promised to not make any cuts to entitlements, welfare spending that includes Social Security, Medicare, and Medicaid. Entitlements make up both the largest and fastest-growing chunk of the federal budget—nearly half of all spending—and economists project that failing to reduce their rate of growth will be the biggest contributor to the deficit in the coming decades.
- Defense spending totaled $584 billion in 2016, and Trump has promised to "rebuild our military" by adding fifty thousand soldiers, expanding the Navy's fleet, and adding planes to the Air Force. He has not released cost estimates.
- Infrastructure is another area in which Trump has promised major spending, floating the idea of a $1 trillion plan. He has said that the vast majority of that would come from private investors, incentivized by tax breaks that could total $137 billion. Another administration priority is building a wall along the U.S.-Mexico border, which estimates put between $12 billion and $25 billion.
The tax reform plan Trump released during the campaign includes cuts to both corporate and individual taxes, and experts say it is likely to significantly increase the deficit. Trump, like some other Republicans, says that cutting taxes will boost growth and thus increase government revenue. Analysts including the nonpartisan Tax Foundation, however, estimate that even accounting for accelerated growth, Trump's tax plan would increase the deficit by $2.6 trillion to $3.9 trillion over the next decade.
Come on rightwingers, call your representatives and demand they threaten to shut the government down if the debt ceiling is raised!