Decreasing taxes was one of the biggest promises that Trump made during the presidential campaign. While the idea seems very nice, the bottom line is that the government needs money to operate. Start lowering taxes and your next question should be - where will the money the government needs to run itself come from?
While the new tax cut that Trump is promising is still in the works, it seems that the Federal government can breathe a little easier as it won't get any budget cuts anytime soon.
Thanks to the U.S. congressional negotiators, a bipartisan agreement has been reached and it's all about the spending package to ensure the federal government is funded until the end of the fiscal year. Because that date could prove significant in the coming administration’s tenure, the fiscal year ends on September 30.
However, before the agreement comes into full effect, the Senate and House of Representatives must approve the newly discussed deal and it would also require the signature of President Trump. If the agreement fails to get both, a Federal government shutdown may happen. This has not happened since 2013.
The Washington Post recently made a report that Congress is presumed to vote on the deal during the early days of this week. The new agreement also included that spending on border security and defense must be increased.
At the moment, the Congress is largely led by the Republicans and they averted a Federal shutdown last Friday. This is all because the Congress voted on what is called a stop-gap spending bill.
The stop-gap bill is designed to give leaders the extra time they need to reach satisfactory agreements. At the moment, there are still a lot of differences between the Democrats and Republicans. The extra time can greatly help to ensure that the two parties can iron out the details. Negotiations between the two parties are already gaining progress as each side has made significant compromises.
One of the major reasons for this year's delays is the drastic change in the government spending plans. This usually happens during the year in which there is a change of administration.
During the past several months, the Congress was tied up in trying to work out a $1 trillion spending plan, which is for the current fiscal year. The 2017 appropriation bills were supposed to be taken care of by the lawmakers last October.
The Democrats also backed the stop-gap bill last Friday. This was after the leaders of the House of Representatives put off a vote concerning a major healthcare legislation aggressively pushed by President Trump.
Recently, Trump also accommodated Democratic demands, specifically about not including money to start constructing the U.S.-Mexico border wall for spending legislation with the current fiscal year. Trump made a promise to build a wall that divides Mexico and the United States to curb down alleged drug smugglers and illegal immigrants.
Also, Trump agreed to continue spending on a few major components of the Obamacare. Keep in mind that the Republican Party has made a vow to end the said healthcare program.