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Trump federal worker pay raise cancellation, GOP tax law federal debt



donald trump
President Donald

Alex Wong/Getty

  • President Donald Trump announced that most civilian
    federal workers will not receive pay raises in 2019, saying he
    made the move because of fiscal constraints.
  • Trump said the pay raises would cost the federal
    government $25 billion, and canceling the raises will “put our
    nation on a fiscally sustainable course.”
  • At the same time, the tax reform law passed by Trump
    and Republicans in Congress is projected to add $190 billion to
    the federal deficit in 2019.

Most federal civilian employees won’t be getting a pay raise in
2019 following a declaration from President Donald Trump.

Trump cited the cost of the raises, $25 billion, as reason for
the cancellation.

We must maintain efforts to put our nation on a fiscally
sustainable course, and federal agency budgets cannot
sustain such increases,” Trump said in a letter to House Speaker
Paul Ryan and Senate Majority Leader Mitch McConnell.

There may be some pay raises on a performance basis, but
across-the-board increases won’t happen, Trump said.

In light of our nation’s fiscal situation, federal
employee pay must be performance-based, and aligned strategically
toward recruiting, retaining, and rewarding high-performing
Federal employees and those with critical skill sets,” Trump
wrote. “Across-the-board pay increases and locality pay
increases, in particular, have long-term fixed costs, yet fail to
address existing pay disparities or target mission critical
recruitment and retention goals.”

According to a report from the Congressional Budget Office (CBO),
the tax reform law touted by Trump and passed by the GOP will

add $1.9 trillion to the federal deficit
over the next 10
years, including reduced revenues and debt service payments. That
means the law is adding about $190 billion a year to the deficit.

The CBO also estimated that due in part to the tax law, the
US federal deficit would exceed $1 trillion
by 2019.

Additionally, the White House’s Office of Management and Budget

projected that the tax bill will add $230 billion
to the
federal deficit in 2019 — almost 10 times the cost of the
canceled raises.

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