In his third week back in the White House, Donald Trump brought the United States’ biggest trading partners to the brink of a tariff war, shut down the US Agency for International Development on the suggestion of volunteer co-president Elon Musk, and announced his plan to bring peace to the Gaza Strip by clearing Palestinians from the territory so the bombed-out rubble can be redeveloped into a Mediterranean resort.
Meanwhile, Republicans in Congress began to devise a way to pay for renewal of tax cuts for billionaires under special rules that allow them to get the budget through the Senate with a simple majority. But the reconciled budget cannot increase the national debt. So they must cut trillions of dollars from federal spending. Likely targets for cuts include health care, welfare and attempts to mitigate climate change. And they won’t miss a chance to take a swipe at Social Security and Medicare.
Trump allowed Musk to become the freelance head of the self-styled Department of Government Efficiency (DOGE), operating under Trump’s authority to conduct inquisitions of federal agencies to slash federal spending and replace entrenched bureaucracy with Trump loyalists.
The Office of Personnel Management (OPM), which is essentially the human resources agency for federal government, has been practically taken over by Musk lackeys who sent out a mass “deferred resignation” offer to federal employees in an attempt to get “deep state” bureaucrats to leave willingly, with the promise that they would get full pay and benefits through September. But union leaders said the offer was dodgy, would imperil pensions, and advised federal employees not to fall for it. A federal judge in Boston temporarily blocked the Trump administration from proceeding with the buyout while lawsuits proceed.
Musk got his minions access into the Treasury Department’s payment system that disburses trillions of dollars and contains sensitive personal data on all Americans. The next thing you know, Musk announced that USAID, the 64-year-old agency that provides humanitarian assistance — mainly food and medicine— to combat poverty and support global health in 100 countries, is “a viper’s nest of radical-left marxists who hate America,” are “evil” and “a criminal organization … Time for it to die.” (USAID also happened to be investigating problems with Musk’s Starlink satellite system, one of his many conflicts of interest with his probe of federal government waste.) But even if Republicans finally decided it was worth the risk to ignore epidemics around the increasingly mobile world, USAID’s $40 billion in annual appropriations isn’t going make much of a dent in the $2.3 trillion Republicans need to grease the planned tax breaks for the ultrawealthy. And don’t expect that risking another pandemic at home will get working-class taxpayers much of a break.
In Trump’s first term, households with incomes in the top 1% received an average tax cut of more than $60,000 in 2017, compared to an average tax cut of less than $500 for households in the bottom 60%, according to the Tax Policy Center. Trump brought the top corporate tax rate from 35% to 21%, and now he wants to bring it further down to 15%.
For the ultrawealthy, Republicans propose to eliminate the federal estate tax, which now charges a percentage of the value of a person’s fortune after they die, with a $14 million deduction. It would cost the government $370 billion in revenue over 10 years.
Republicans plan to eliminate income taxes on tips, at a cost of $106 billion over a decade, fulfilling a pledge Trump made to to service employees in Las Vegas during the campaign. But the Bait and Switch Party wants to broaden the exemption to include bonuses for executives.
One of the programs Republicans have targeted for major cuts is Medicaid, which provides health care for 72 million people with low incomes, as well as nursing home care for seniors, at a cost of nearly $900 billion.
Republicans propose to “recapture” $46 billion in savings from Affordable Care Act health insurance subsidies, which are set to expire at the end of the year, and they would limit eligibility for plans, based on citizenship status.
Other proposals would eliminate tax breaks for families with children. Currently, parents can get a tax credit of up to $2,100 for child care expenses. The House Republican plan floats the elimination of that break. The cut is estimated to save $55 billion over a decade.
They’re also eyeing repeal of significant health care rules the Biden administration put in place, such as requiring minimum staffing levels at nursing homes. In addition to Medicaid and ACA cuts, Republicans hope to claw back bipartisan infrastructure and Inflation Reduction Act funding.
Also on the chopping block are Joe Biden’s climate policies, which are estimated to cost as much as $468 billion. Trump’s promises to repeal Biden’s “EV mandate,” as well as discontinuing “Green New Deal” provisions from the bipartisan infrastructure law and green energy grants from the IRA.
When that doesn’t do the job, Republicans are preparing to make the case for cutting Social Security and Medicare — touching the third rail of politics, Emily Singer noted at DailyKos.com. Rep. Riley Moore, R-W. Va, told Fox Business’ Maria Bartiromo on Feb 10 that Republicans have been “discussing” cutting “mandatory spending” — that is, Social Security, Medicare, Medicaid and veterans benefits — in order to pass Trump’s tax cut agenda. ”This is our once-in-a-lifetime opportunity,” Moore said.
Republican Sen. Mike Lee of Utah went further in a post on X, saying, “Social Security [is] a ripoff for most Americans compared to essentially any legitimate retirement investment.”
Musk’s unqualified DOGE bros have already accessed the Treasury Department’s systems that make payments for Social Security, raising alarm bells from Democratic lawmakers.
“The federal government is not Twitter. It matters if Elon breaks things at the Social Security Administration. Musk has no clue what SSA employees do, nor does he care — it doesn’t matter to him if you miss a Social Security Check. He belongs NOWHERE NEAR your Social Security,” Democratic Sen. Patty Murray of Washington, posted on X.
Cutting Social Security benefits could cause a massive backlash from voters. But Republicans might fear the backlash from billionaires more, if the rich folks don’t get those tax cuts they’re expecting. Make them fear the wrath of voters more.
Republicans only hold a 218-215 majority in the House and 53-47 in the Senate. Call your senators and House member. If you can’t get through the Capitol switchboard at 202-224-3121, call their local offices. Demand they protect Social Security and Medicare. And if they’re Republicans, hold them to account for Trump’s misuse of executive orders and defiance of courts. They supported a convicted felon for president. Now it’s time to rein him in. — JMC
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