AP FACT CHECK: How Trump’s ‘Penny Plan’ adds up to big cuts
WASHINGTON — Donald Trump’s “Penny Plan” sounds like a painless pinprick in the federal budget — a 1 per cent annual cut in a chunk of government spending, adding up to huge savings. “One penny,” he says. “We can all do that.”
But it’s really an axe that would hollow out much of what it touches.
In his economic speech Wednesday in New York, Trump said the plan would save $1 trillion over a decade. Military spending, Social Security, Medicare, Medicaid and veterans programs would be left untouched.
How can a mere penny on the dollar do that, especially when the biggest budget items are exempted?