Open AccessBudget Innovations at the Period of Trump’s Presidency: Social Dimension
Author(s) -
Л. Ф. Лебедева
Publication year - 2018
Publication title -
kontury globalʹnyh transformacij: politika, èkonomika, pravo
Language(s) - English
Resource type - Journals
eISSN - 2587-9324
pISSN - 2542-0240
DOI - 10.23932/2542-0240-2018-11-2-46-62
Subject(s) - tax reform , tax credit , federal budget , value added tax , indirect tax , state income tax , business , public economics , social security , direct tax , income tax , ad valorem tax , welfare , economics , economic policy , labour economics , finance , fiscal year , market economy
Tax cuts and spending cuts go hand in hand at the beginning of the Trump epoch. The paper focuses on the social effects of the tax reform and new budget priorities which come along with steps aimed to move more people from welfare into the workforce. For a vast majority of Americans, the Tax Cuts and Jobs Act will lower their federal tax bill in the coming years due to the new rates, new tax brackets, much larger standard deductions, expanded child tax credit. The high quintiles pay the biggest share of the tax burden, so they will receive the largest volume in tax cuts. Income tax cuts, coming along with growing defense and infrastructure spending may significantly increase the budget deficit and national debt in the nearest future, and require huge slashing federal spending which would affect welfare programs for the low-income Americans. There are nо plans to cut Social Security benefits as the main driver of federal spending; but social expenditures which comprise cash benefits, direct in-kind provision of goods and services are proposed to being cut. The category of funding targeted by the Trump plan covers a wide rangeof basic services, from medical care to education programs, child care, housing assistance for low-income families.