During his 2016 campaign, then-candidate Donald Trump’s domestic policy agenda raised some red flags for skeptical conservatives. Principally, his pledges to not reform Medicare or Social Security in a substantive way and to introduce massive new infrastructure spending, combined with an unusual hostility (for a Republican) toward free trade led many to wonder how his plans wouldn’t add to the national debt and annual budget deficit considerably.
What’s more, even broad tax cuts and regulatory freezes and rollbacks seemed poised to add, at least in the short-term, to the debt and deficit, until those savings could spur the requisite economic growth needed to help shore up that widening gap. Three days into his term, President Trump appears prepared to make good on the promises he made on the trail and, if necessary, do battle with both parties in the process.
Speaking to a gathering of business leaders Monday, Trump announced plans to undo as much as 75 percent of existing federal regulations (and possibly more), while also reiterating his intention to cut the corporate tax rate from 35 to 15 percent and beginning the process of withdrawing the United States from the Trans-Pacific Partnership.
Essential to Trump’s proposals to cut taxes and regulation, maintain entitlements and expand infrastructure spending is a sizeable uptick in economic growth, something Douglas Holtz-Eakin, president of the conservative American Action Forum, says will not happen given Trump’s plan for less, not more, immigration.
“In the absence of immigration, we shrink the size of our population and our economy and our global influence,” Holtz-Eakin told The Associated Press. “There’s no way to get 4 percent [growth] without more people.”
Our new populist president must be prepared to walk a tightrope as he attempts to fulfill the promises he made along the campaign trail. He’ll no doubt encounter pushback from Democrats opposed to his tax cuts and regulatory reforms, while Republicans, such as Speaker of the House Paul Ryan, understand that the high cost of these plans puts their conservative credibility on the line after years of railing against runaway government spending.
Making America great again is a lofty goal to be sure, but unfortunately for White House Press Secretary Sean Spicer and other longtime Republican operatives, “alternative facts” won’t work with voters if this administration and its aspirations fall short.
Tamer Abouras (@iamtamerabouras) is a contributor to the Washington Examiner’s Beltway Confidential blog. He is a writer and editor from Williamstown, N.J. Thinking of submitting an op-ed to the Washington Examiner? Be sure to read our guidelines on submissions.
