Politics

U.S. House Reveals Budget That Balances

Earlier this week, we covered President Donald Trump’s proposed budget. It’s not perfect, but it’s a budget that actually reduces the deficit. By 2027 there would still be a $720 billion deficit , but that’s better than the $1.5 trillion we’d end up with in absence of Trump’s budget. While I was happy that the deficit would at least be cut in half, it would be nice to have a surplus.

We haven’t had a balanced budget since the Eisenhower Administration (contrary to popular belief, the Clinton surplus was nothing more than an accounting trick), and who better to fix the books than a career businessman? The House Budget Committee unveiled a budget of their own, and it’s one Trump should enthusiastically adopt.

The House Budget Committee unveiled its Building A Better America 2018 budget Tuesday, which is balanced and achieves a $9 billion surplus in 10 years and increases GDP growth to 2.6 percent.

“Our budget is one of sustainability, smaller government, stronger national security, and greater freedom for individuals,” the committee states. “The status quo is unsustainable spending, higher deficits and debt, higher taxes, bigger government, and more federal control over the lives of Americans.”

The budget not only balances within a decade, but aims to increase economic growth by implementing tax reform and reducing government regulations, as well as reforming several government programs to ensure taxpayer dollars are used efficiently and appropriately.

H/T Washington Free Beacon

Not only does the House budget actually balance, it does so with less optimistic GDP growth assumptions as Trump’s budget. The GDP growth rate is important, because it’s an indicator of economic health. When GDP is growing faster, there are less unemployed people (leading to less expenditures on social services, and more tax revenue).

While a $9 billion surplus isn’t that much (our government spends roughly $10 billion a DAY, for context), it would be the first budget surplus since 1957, when Eisenhower yielded a $2.2 billion surplus (in non-inflation adjusted dollars).

Overall, the budget achieves $6.5 trillion in deficit reduction. In absence of it, there will be an additional $9.4 trillion added to the debt by 2027.

Obama spent too much, and none of that spending acted as a “stimulus.” In fact, if you see how the market reacted to Trump’s victory, it’s clear that Obama’s policies were a sedative, while the policies Trump has proposed (a repeal of Obamacare, lower taxes, and immigration enforcement) are viewed favorably by the market.

Obama was the first president since WWII to never see even a single year with 3 percent economic growth, and that was because of, not in spite of, his fiscal policies.

Share this if you’re ready for a balanced budget in Washington!

Matt

Matt is the co-founder of Unbiased America and a freelance writer specializing in economics and politics. He’s been published in The American Thinker, Rare, The Foundation for Economic Education, The Ludwig von Mises Institute, and National Review. He is the author of the new book A Paradoxical Alliance: Islam and the Left. Follow him on Twitter at @MattPalumbo12.

View Comments

  • Again, the GOP leadership has decided to break the party's back on the mirage of a balanced budget. With Newt, I realized that it was a valiant effort in the face of enormous opposition, but still a misplaced priority. Here it is just farce.

    I would never consider wringing Paul Ryan's scrawny neck.

  • Great Mr. President. Lets see f the MSM reports this achievement! But, don't hold your breath..

  • Thank you, Mr. President! Congratulations. Although the demoncrats and the mainstream media continue to attack you, your family, and your administration, you, Congress, and The Senate, you have accomplished more in six months than what the previous administration did in eight years to bring us down to the degradation of the demoncratic culture. We are the American People that put you in office and the real poll---76% of us---are behind you and want you to succeed. Again, our greatest thanks ands please continue to Make America Great Again!!!

  • This all BS! Trump wouldn't know a balanced budget if it bit him in the face!

    • YOU KNOW you are a nasty person.....what has happened to people trying their best when we had a criminal who stole from us the tax payer to make himself a 1%. I would like all Berry Soetoro off shore account with stolen money given BACK to our government ASAP. Then have him investigated for treason. Then lets talk about a man who is trying his best to unto OB's many scams done to America. Ob didn't have a cent until he took over the WH and our purse strings. Lastly I want my health insurance back the way it was before Ob tore it apart on the middles classes back.What can anyone say worse ever that Ob has done in the last years that could be worse then a criminal scam artist?????????/

      • Everyone knows the Paris Climate accord is a scam. Glad Trump withdrew from that scam.

        U.S. were obligated to contribute billions of dollar. The money then distribute to these 3rd world countries where no one knows where the money goes. These countries then turn around pay obama and clinton $400,000 per speech. See how this scam works? Jeff Sessions needs to look into this.

      • Lynnea, he is rich because he transferred the losses from all of his bad decisions to the bankruptcy court where his vendors, customers, workers and investors paid his bills.

        Not having to pay your bills makes it easier to accumulate money.

        Of course, money laundering for the Russian mafia, helped as well.

      • Exactly, lynne1, that clown probably thought 0bama knew what HE was doing
        with HOW many budgets that NOBODY would vote for, not even within his own
        party! Pathetic!!!!

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