Skip to content
Search AI Powered

Latest Stories

The Architect of Donald Trump's Tax Cut Plan Is Now Blaming Democrats for Soaring Deficits, and People Can't Even

The Architect of Donald Trump's Tax Cut Plan Is Now Blaming Democrats for Soaring Deficits, and People Can't Even
WASHINGTON, DC - MARCH 06: Treasury Secretary Steven Mnuchin testifies during a House Appropriations Committee hearing on Capitol Hill, on March 6, 2018 in Washington, DC. The committee is hearing testimony on the Trump administrations FY2019 budget request for the Department of Treasury. (Photo by Mark Wilson/Getty Images)

Riiight.

In an interview with CNN, Treasury Secretary Steven Mnuchin said Democrats are to blame for the ballooning deficit, which is expected to hit $1 trillion when official numbers are released next week, and placed specific blame on spending increases on health and education in exchange for military budget increases as part of a massive spending package President Donald Trump signed in September 2017 to avert a government shutdown.

"People are going to want to say the deficit is because of the tax cuts. That's not the real story," he said. "The real story is we made a significant investment in the military which is very, very important, and to get that done we had to increase non-military spending."


"If we could have approved that with 51 votes instead of 60 votes, we would not have spent as much money on non-military spending and the budget deficit would have been considerably smaller," he added.

Although Mnuchin declined to comment on details of the coming deficit numbers, he insisted: "We're on our way on growth, the tax bill will pay for itself and provide additional revenue."

Mnuchin was perhaps the biggest proponent of the much-criticized GOP tax cuts, which have cost the Treasury Department billions in revenue, and many objected to his version of events.

Blaming Democrats for the tax plan is not a new talking point. President Trump himself has often blamed Democrats even though the Republican Party has control of Congress. He once claimed that “the only people” who don’t care for the tax proposal are those who “don’t understand” it and the “Obstructionist Democrats."

The president's comment came on the heels of a Quinnipiac University poll which found that 53 percent of U.S. voters disapproved of the Republican tax plan. That poll found that 64 percent of Americans believed that the plan, if passed, would benefit only the nation’s wealthiest citizens, while only 24 percent think the middle class would benefit. Just 5 percent believe the plan would benefit those in the lowest income bracket.

An analysis by The Joint Committee on Taxation released in November 2017 found that the tax plan would add $1 trillion to the deficit over a decade––even when accounting for economic growth. A Penn Wharton Budget Model predicts the tax plan would add approximately $1.39 trillion to the deficit, while a Tax Foundation predicts the proposal would add $516 billion to the deficit.

Last year, a troubling report from the nonpartisan Congressional Budget Office (CBO) revealed that the plan “gives substantial tax cuts and benefits to Americans earning more than $100,000 a year”––hitting the nation’s poorest citizens particularly hard––and that the legislation would “add an increase in the deficit of $1,414 billion over the next 10 years.”

In December 2017, Mnuchin came under fire after Senator Elizabeth Warren (D-MA) triggered an investigation over political meddling in the tax policy office after The New York Times and several other media outlets revealed that Mnuchin, in pitching the $1.5 trillion tax overhaul he says will bolster economic growth, has been citing a report that doesn’t exist.

Mnuchin had promised that the Treasury would release its analysis in full as the Senate prepared to vote on the first rewrite of the country’s tax code in three decades, and had said that over 100 people in Treasury are “working around the clock on running scenarios for us.”

The administration had yet to release any type of tax analysis, however, and those inside the Treasury’s Office of Tax Policy told reporters that they are not working on any analysis he has mentioned. In fact, an economist at the Office of Tax Analysis, who spoke to New York Times reporters on the condition of anonymity, said Treasury had not released a “dynamic” analysis indicating the tax plan will pay for itself with economic growth because one did not exist.

More from News

James Talarico; Stephen Colbert
CBS

Stephen Colbert Rips CBS For Banning Interview With Texas Democrat Due To FCC Threat

Late-night host Stephen Colbert criticized CBS for attempting to ban him from interviewing Texas Senate candidate James Talarico, and from even mentioning the interview on air, due to threats from Brendan Carr, the chair of the Federal Communications Commission (FCC).

Talarico, who represents Texas in the state House, has previously made headlines for calling out Texas Republicans for "trying to force public schools" to display the Ten Commandments and has generated significant buzz as a forceful voice for Democrats in a state largely in the hands of the GOP.

Keep ReadingShow less
American Girl Dolls; Tweet by @deestiv
Marvin Joseph/The Washington Post/Getty Images; @deestiv/X

American Girl Dolls Just Got An 'Ozempic' Makeover For The 'Modern Era'—And People Are Not Impressed

There's nothing quite like the grip American Girl dolls had on Millennials during the mid-1990s and early 2000s.

Created in 1986 by the Pleasant Company, American Girl dolls were meant to model positive core values with dolls that resembled young women from various time periods across American history and different favorite hobbies, like horseback riding and cheerleading.

Keep ReadingShow less
A line of rotisserie chickens with a reaction from X overlayed on top.
UCG / Contributor/Getty Images

'Wall Street Journal' Ripped After Saying Millennials And Gen Zers Are 'Splurging' On 'Rotisserie Chickens' Instead Of Buying Homes

It's sadly all too common for older generations to look down on millennials and criticize their constant complaining about how "hard" life is and how they can't afford to be homeowners.

That criticism almost always ignores factors like the rising cost of housing, increasingly low salaries, and a continuous housing shortage.

Keep ReadingShow less
Cardi B
Aaron J. Thornton/WireImage/Getty Images

Cardi B Claps Back Hard At Homeland Security After They Mock Her For Threatening To 'Jump' ICE At Her Concert

People unfamiliar with rap music may not know much about the art form or its stars.

The majority of the world might only know Cardi B as one of the women—with Megan Thee Stallion—behind the song "WAP" that was certified Platinum nine times in just the United States before hitting Diamond eligible status in late 2025 with 10 million units sold.

Keep ReadingShow less
Donald Trump
Saul Loeb/AFP via Getty Images

Trump Roasted After Making Bonkers Comparison Between Gas Prices In Iowa And California

President Donald Trump was widely mocked for making a nonsensical comparison between gas prices in Iowa versus California during a ceremony at the White House in which he was given an award for being the "undisputed champion of beautiful clean coal."

Trump's recognition reportedly came from the Washington Coal Club, a pro-coal advocacy organization with financial links to the sector. The award was presented by James Grech, chief executive of Peabody Energy, the nation’s largest coal producer. The bronze trophy depicts a miner equipped with a headlamp and pickaxe.

Keep ReadingShow less