Republicans in the US House of Representatives on Tuesday unveiled an outline of their budget proposals that calls for $203bn in spending cuts to mandatory programmes, as well as “deficit-neutral tax reform”.
“With $20tn in debt and climbing, the opportunity to sit idly by has long since passed. We have a moral responsibility to leave the next generation better off, but so far, we are failing,” the blueprint released by the House budget committee says.
The plan would cut the corporate tax rate, and lower taxes for individuals. However, making the reforms deficit neutral could put pressure on lawmakers’ ability to make the changes as deep as some had wished when Donald Trump, a billionaire businessman turned politician, was elected president.
Overall, the draft 2018 budget plan calls for a balanced budget over the next decade. It it claims to provide $6.5tn in deficit reduction by 2027. The plan calls for $621.5bn in defense spending in 2018, with $511bn in non-defense spending.
The plans come just hours after the GOP’s plans to repeal and replace the Affordable Care Act, Barack Obama’s signature healthcare initiative, collapsed in the Senate after additional Republicans defected from the initiative.