Which Trump Cabinet Member Will Be Next on the Block?

Most people have settled on their opinions on Donald Trump as US president. Fewer people know what will happen to the people around him in his administration.

Will the cabinet stay intact? Who will be the next to go? How about Steve Bannon or James Mattis? Will Trump himself stay?

Any one of these questions would make for an interesting conversation. Unfortunately, it’s hard to know which one to follow. Few people have any idea of the inner workings of the Trump administration and how it will affect them.

Here’s a better question: which one of these cabinet members will be the next to lose their job? Once you know the answer to that question, you’ll know everything else you need to know.

Where Will The Money Go?

One of the most interesting things about this administration is how the cost-cutting measures are already starting to bite. The budget deficit is expected to increase from 3% to 7% of GDP this year.

This is mainly because of the $100 billion+ in tax cuts that the president and his administration pushed through last year. The effect of those cuts has yet to be felt by the American people, but it will eventually. The economic stimulus they provided will come with a price tag.

The Education Cuts

Another area the administration has targeted for significant budget reductions is education. Last year, the president signed a $9.7 billion cut to education, which included an 8% cut to the Title I program and a 10% cut to Medicaid (which provides health insurance for low-income people).

So far, this year, the education budget has decreased by 12%, with more than $13.5 billion in reductions. What’s more, the administration has proposed an additional $20.5 billion in cuts (which, if passed, would mean another 40% reduction to the education budget).

The Tax Reform

For decades, the United States government has operated with the “status quo” tax system. Under that system, most people spend more time paying their taxes than they do living their lives. That’s how things stayed the same while the government changed around us.

The Trump administration has proposed an entirely different system: a flat tax of 30% on most income, which would be raised to 33% for high-income earners. The expectation is that this tax reform will generate around $10 trillion over the next decade.

This is a massive opportunity for those who work in the industry. The question is: will you take it?

How About The EPA?

Speaking of raising taxes, let’s not forget about the Environmental Protection Agency. Under Obama, the EPA was one of the few government agencies that actually managed to spend less money. Remember when Scott Pruitt, the current head of the EPA, appeared on 60 Minutes and said, “What we’re trying to do is stop government overreach and reduce the burden of government?”

Well, the Trump administration is looking to cut the EPA’s budget by 31% in 2019 and eliminate up to 2,000 jobs. Many in the environment movement are worried about the future of the agency.

Healthcare

Speaking of government spending, let’s not forget about healthcare. Under the Obama administration, the budget for healthcare increased by 74% from 2010 to 2016. That’s when the Obamacare exchanges started to malfunction and healthcare became more expensive. Most people blame the GOP for the healthcare crisis, but that’s not entirely true.

Trump promised that, once he was elected, he would repeal and replace Obamacare. So far, he’s managed to accomplish part of that goal. Last year, he signed a $1.5 trillion budget to repeal and replace the Affordable Care Act. One of the significant items in that budget was the repeal of Obamacare’s individual mandate (which requires all citizens to have insurance or pay a penalty).

While most people focus on the healthcare budget and how it has increased under Trump, it is actually more than twice as large as it was under Obama. In 2016, the budget was $11.6 billion. This year it’s over $23 billion.

The Military

Finally, we come to the Department of Defense and the military. Every year, the federal government spends more money on the military than it has in the previous 100 years combined. While other areas of government spend less, the DoD has been responsible for more than $7 trillion in spending since World War II. That’s trillion with a “b” not a “t”.

Now Trump wants to cut that budget by 28% over the next 10 years. How will that affect you?

You will notice that I didn’t include the word “social” in any of the areas mentioned so far. That’s because the Trump administration is looking to make significant cuts to social programs. It wants to reduce food stamps by 40%, cut housing assistance by 90%, eliminate after-school programs, and increase the work requirements for Medicaid and the Temporary Assistance For Needy Families (TANF) program.

These are programs that have helped millions of low-income Americans get out of poverty. While they may not be popular with the Trump administration, they are arguably one of the most effective ways of reducing extreme poverty.

Which One Of These Cuts Is Most Likely To Hurt You?

No one is entirely sure. Many people have settled on their opinion on this issue, but it’s not necessarily their opinion that counts. What counts is how the cuts will affect your personal life.

Based on what we know so far, the education cuts and the tax reform are the ones that will affect you the most. Why? Because they will disproportionately affect lower-income individuals and families.

If you rely on federal education funds, then the education cuts will hurt you. If you pay federal taxes, then the tax cuts will affect you. If you work in a healthcare-related field or in a hospital, then the healthcare cuts will affect you.

It’s important to remember that these are just predictions. We don’t know for sure which ones will be eliminated or how much pain the remaining cuts will cause. All we know for sure is that these are the big ticket items and they will affect more people than any other area of the budget. Now is the time to prepare for the changes that will occur.