Trump’s massive $7,500-a-month plan to overhaul the nation’s health care system is going nowhere fast, according to a new analysis.
“In short, the proposal that Trump and congressional Republicans are working on will not be affordable or sustainable, and it will not produce meaningful savings for the nation,” writes Jonathan Cohn at Axios.
“Trump and Republicans are simply failing to understand that their big tax cuts are not going to create enough money to replace the money that will be spent in 2018 and 2019.”
While Republicans have said they’ll pass a tax plan in the coming weeks, Trump has been trying to convince voters that the plan will not result in significant new spending.
Trump’s tax plan would cut corporate taxes by more than $1 trillion over 10 years.
It would reduce taxes on investment income by nearly $2 trillion, and reduce the tax burden on the wealthiest Americans.
The Tax Policy Center, which provides analysis to lawmakers, said Trump’s plan would lead to a $2,500 savings for a family of four.
That savings would only be temporary.
Tax experts have also warned that the bill could cost more than half a trillion dollars in the first year of full implementation, and Trump has insisted that the savings won’t be that big.
“There is a lot of room for growth in the $2.5 trillion, $2-trillion budget,” said Cohn.
“That’s not necessarily the case, and I think it’s likely to be higher than that.”