Last week Donald Trump met with airline executives from across the country to discuss a number of challenges facing the industry. One critical item on the agenda was the crumbling infrastructure airports have been contending with for years now. In typical Trump fashion, the executives were promised a reduction in regulations, funding for physical improvements and, of course, tax breaks. In all, according to his plan, Trump’s infrastructure proposal is projected to cost $137 billion in federal tax credits and $1 trillion over a ten years to pay for an assortment of different projects. During the same week, in a meeting with law enforcement professionals Trump promised new protections for law enforcement officers and the building of his boarder wall which is estimated to cost $21 billion. During this meeting Trump also promoted his soon to be released tax plan which recently was updated and revised.
Trump’s plan, in all, is excepted to cost the American tax payer $4.8 trillion over the next ten years. Lost revenue from individual income taxes will cost $2.1 trillion and the plan to cut taxes for corporations will cost $2.4 trillion. On top of that, Trump’s plan to repeal the estate tax is estimated to cost an additional $300 billion. In all, just the three Trump initiatives outlined above will cost the American tax payer nearly $6 trillion over the next decade. That total represents 35.77% of the America’s GDP. And remember, that’s only three initiatives (tax plan, infrastructure, boarder wall). Trump also publicly announced that he plans to increase the budget for Defense, a department which already has a significant budget of $598.5 billion.
Needless to say, these are astronomical totals which will require a lot of capital for a country already in debt $19 trillion. Which is why there was no surprise when The Hill reported that Congressman Mark Meadows (R-NC) said he spoke with Donald Trump and is certain that he will back efforts to reform Medicare and Social Security despite Trump’s promise not to do so during the presidential campaign. It is clear to see that in order for Trump to push through his economic agenda there will have to be massive cuts to government spending somewhere along the line.
While I’m sure most Trump voters were under the impression that the people who would suffer these cuts would be people receive “government handouts” i.e. people who don’t look like them or live where they live. However, in reality, these cuts will need to be so deep that everyone will feel the pain. Cuts to programs like Unemployment, Social Security and Medicare are just the beginning. More severe cuts to a number of programs utilized by all Americans will be needed in order to make room for the Trump agenda. So prepare yourself….it’s going to be a bumpy ride!