Cabinet members head to Capitol Hill to defend Trump budget



But Mulvaney went on to describe what compassion in Donald Trump's America will look like: Major funding boosts for programs that Trump promised on the campaign trail; huge cuts to safety net programs that neither Mulvaney nor Trump seem to understand very well; and a big corporate and personal tax cut that most economists say will blow a hole in the federal budget, but that Mulvaney insists will boost the economy to 3 percent annual growth and somehow balance the budget in 10 years.

The proposed 2018 budget immediately came under attack by Democrats, and even some GOP allies deemed it a non-starter. Mexico emphatically rejects that notion.

The White House Budget Office assumes sustained 3% economic growth starting in 2020.

Mulvaney said the annual growth the Obama administration and Congressional Budget Office forecast was "pessimistic".

"While we appreciate the administration's focus on reducing the debt, when using more realistic assumptions, the president's budget does not add up", Maya MacGuineas, the group's president, said in a statement. "And so when you're trying to reach balance by relying on such a tiny sliver of the budget, it's very hard to make those numbers add up". "I think this is a huge illustration about why being unwilling to talk about the real issues - Social Security and Medicare and taxes - means you then you end up gutting all these programs for low income people".

Medicaid spending would fall from 2 percent of the economy to 1.7 percent in 2027 due to the reductions in spending projections by Trump. However, that goal depends on growth projections that most economists view as overly optimistic and a variety of accounting gimmicks, including an nearly $600 billion peace dividend from winding down overseas military operations.

When Obama became president in 2009, the economy was stuck in the Great Recession.

"We plan to work closely with congress to make sure cuts of this level never see the light of day", she said.

President Donald Trump formally released his new budget proposal on Tuesday, even though he's on the other side of the world, on the first diplomatic trip of his term.

Democrats had an opposite interpretation.

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Members of Congress have emphasized that the president's budget is just a starting off point and rarely passes as is. Dick Durbin of IL. Food stamp cuts would drive millions from the program.

"Isn't it reasonable to at least ask the question, 'Are there people on that program who shouldn't be on there?"' Mulvaney asked.

Parental leave: A new proposal allowing six weeks of paid leave for parents of newborns and adopted children, a programme championed by Trump's daughter Ivanka, costs US$20 billion.

The goal is to encourage a total of $1 trillion of public and private investment in infrastructure, which would include "expedited projects that would not have happened" without federal involvement, such as the Keystone XL oil pipeline.

On the block for historic cuts are Medicaid, which would be slashed by more than $800 billion, the Supplemental Nutritional Assistance Program, or SNAP, which would see a 29 percent cut, the Children's Health Insurance Program, which would be cut by 19 percent, and an array of foreign assistance and medical research programs. It would cut hundreds of billions of dollars from Medicaid spending over the next decade.

He defended the budget against charges it drastically cuts funding for important safety net programs like Medicaid, as well as tightening eligibility for disability insurance, a move set to save more than $70 billion over 10 years. Joel Berg, CEO of Hunger Free America, said 1.6 million New Yorkers, including children, seniors and people with disabilities, could lose essential food assistance.

Congress is unlikely to approve such deep cuts in the program, since it affects constituents so broadly.

SNAP cuts could take place through suspending employment waivers, which apply in areas with high unemployment rates. There would be three tax brackets - 10 percent, 25 percent and 35 percent - instead of the current seven, and there's a promise to lower the corporate tax rate to 15 percent.

Mnuchin emphasized the need for tax cuts, and says his top priority is creating sustainable economic growth.