Trump’s Proposed 5% Government Spending Cut Would Be a Win for Taxpayers

President Donald Trump went bold last month when he directed Cabinet members to cut spending by 5 percent for their upcoming annual budgets.

This comes nine months after Congress passed its latest budget-busting deal, which sent deficit spending soaring by nearly $300 billion above the Budget Control Act caps.

Asking agencies to cut 5 percent next year is a step in the right direction toward fiscal health and smaller government. The president’s proposal would cut spending by $62 billion beneath the 2020 spending limits.

Notably, the plan would not infringe upon Congress’ Article I power of the purse. So long as 5 percent of funding is cut, lawmakers would be able to prioritize funding as they see fit, ensuring that key national priorities are not neglected.

While encouraging, this 5 percent cut is just a first step. The president and Congress will have to pursue bolder reforms in order to stabilize our growing national debt and avert the looming economic crisis.

One question that should be asked is, why wait until next year to implement these cuts? While roughly 75 percent of appropriations for fiscal year 2019 have already been signed into law, there is still over $300 billion outstanding. Congress could cut more than $15 billion from the remaining bills.

What’s more, the president could put forth another rescissions package, clawing back unnecessary spending after it’s been appropriated, saving billions more.

Since Congress passed the Budget Control Act in 2011, the law has been amended three times to raise the spending caps. Each successive change to the law increased spending and eroded the intent of the law, which was to control the growth of discretionary spending.

The nearly $300 billion debt limit increase passed earlier this year sets up a large cliff at the start of fiscal year 2020, meaning that Congress is likely to push for another deal to lift the cap in the coming months.

Without a commitment to cutting the budget, Congress is paving the way for another massive budget deal for the next two years. Congress would have to raise the caps by $125 billion above the 2019 Budget Control Act cap just to maintain level funding in 2020.

Judging by past budget deals though, the number could be...Read More HERE