‘This is what happens when a Trump administration is not on the same page’: How Trump’s economic policies could impact U.S. workers

By BRIAN MAHONEY By Bloomberg NewsPresident Donald Trump has spent the last six months hammering away at the nation’s economic health and proposing drastic cuts to Social Security, Medicare and Medicaid.

The administration has proposed to cut $1.6 trillion in federal spending over 10 years, including a 10% cut in Medicaid, while slashing corporate tax rates by 10% and cutting the corporate tax rate from 35% to 20%.

Trump is also seeking to slash the corporate rate from 21% to 15% and the estate tax from 20% to 13%, according to Treasury Department projections.

The budget outline released Tuesday said the administration would increase the standard deduction to $12,000 for married couples and to $24,000 married individuals and to a maximum of $18,000 if a joint filer.

The proposal also proposes to increase the child tax credit to $1,000 and to the personal exemption from $12.5 million to $18 million.

The White House did not immediately respond to a request for comment.

The plan also would lower the top individual tax rate to 33% from 39.6%, and eliminate the estate and gift tax, according to the budget document.

Trump has called for cutting federal spending in a bid to lower the national debt, and he has threatened to “declare war” on Wall Street, arguing that the nation could not afford to borrow money.

The Treasury Department’s latest projections from fiscal year 2019 through 2021 would lead to a deficit of $3.9 trillion, or 10.5% of gross domestic product, over the same period, according the nonpartisan Congressional Budget Office.

The Budget Office estimates that the tax increases would cost the government $1 trillion or 6.6% of GDP over the next decade.

The U.N. Conference of Parties last week estimated that a $1 minimum tax on the rich, a tax on companies and a tax increase on the wealthy would cost $2.5 trillion over the decade.

The Trump administration has suggested that the wealthy will pay less than they do now because of the cuts, but the tax plan is not certain to change that calculation.

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