Monday, October 29, 2018

Republicans Look to Safety Net Programs as Deficit Balloons

WASHINGTON — With the federal deficit growing and President Trump suddenly talking about another tax cut, the conversation in Washington has turned to the inevitable question of how — or whether — Congress will engage in any type of fiscal discipline.

Senator Mitch McConnell, the majority leader and Kentucky Republican, got people in Washington talking — and generated some new campaign ads from Democrats — when he suggested this month that changes to Medicare, Social Security and Medicaid were needed to tame the deficit.

So what does that presage should Republicans maintain control of Congress?

This month, the Treasury Department recorded a $779 billion deficit for the 2018 fiscal year, stemming in large part from a sharp decline in corporate tax revenues after a $1.5 trillion tax cut last year. Since Republicans have historically made deficits a big talking point, Mr. McConnell was naturally asked what the heck he was going to do about it.

"It's disappointing, but it's not a Republican problem," Mr. McConnell told Bloomberg News in an interview. "It's a bipartisan problem: unwillingness to address the real drivers of the debt by doing anything to adjust those programs to the demographics of America in the future."


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