This fact sheet analyzing the House Republicans’ proposed 2025 budget that would target Medicare, Social Security, the Affordable Care Act (Obamacare), repeal caps on drugs and cut taxes for the wealthy, is provided by the White House:
In his State of the Union Less than two weeks ago, President Biden laid out his vision for an economy that gives the middle class a fair shot. He also warned that congressional Republicans “will cut Social Security and give more tax cuts to the wealthy,” that they continue to oppose the Affordable Care Act, and that they are siding with Big Pharma over hardworking families.
On Wednesday, Republican Study Committee – which represents 100% of House Republican leadership and nearly 80% of their members – just proposed yet another budget that would cut Medicare, Social Security, and the Affordable Care Act , as well as increase prescription drug, energy, and housing costs – all while forcing tax giveaways for the very rich onto the country. Their plan would even raise the Social Security retirement age.
Like President Biden promised in the Capitol, “If anyone here tries to cut Social Security or Medicare or raise the retirement age I will stop them.”
He’s keeping that promise by standing against this new House Republican budget. He knows the last thing we should do is raid Medicare and Social Security while giving more giant tax cuts to the wealthy and big corporations.
What’s more, House Republicans’ plan would raise energy costs and send our new manufacturing jobs back overseas by gutting other crucial elements of the Inflation Reduction Act, raise housing costs, and allow big companies to rip off consumers with junk fees.
President Biden has a different vision for how we move into the future: make the wealthy, big corporations, and special interests pay their fair share while protecting and strengthening Medicare and Social Security. Extending the Affordable Care Act tax credits he delivered to lower health care costs and cover more Americans than any time in history. Making the economy work for the middle class by investing in America and the industries of the future, while lowering key costs that working families face. And expanding Medicare’s ability to negotiate lower drug costs.
80% of House Republicans released a Budget that:
Cuts Medicare and Social Security while putting health care at risk for millions
Calls for over $1.5 trillion in cuts to Social Security, including an increase in the retirement age to 69 and cutting disability benefits.
Raises Medicare costs for seniors by taking away Medicare’s authority to negotiate prescription drug costs, repealing $35 insulin, and the $2,000 out-of-pocket cap in the Inflation Reduction Act
Transitions Medicare to a premium support system that CBO has found would raise premiums for many seniors.
Cuts Medicaid, the Affordable Care Act, and the Children’s Health Insurance Program by $4.5 trillion over ten years, taking coverage away from millions of people, eroding care for seniors, children, and people with disabilities, and taking us back to the days where people could be denied care for pre-existing conditions and charged more for health insurance simply for being a woman.
Rigs the economy for the wealthy and large corporations against middle class families
Passes $5.5 trillion in tax cuts skewed to the wealthy and large corporations, including permanently extending tax cuts in the Trump tax law, repealing the minimum tax on billion-dollar corporations the President signed into law, eliminating the estate tax for the wealthiest Americans, providing a massive tax cut for billionaire investors, and making it easier for the wealthy and large corporations to get away with cheating on their taxes.
Kills jobs and investment in communities throughout the country – including Red States – by eliminating the clean energy tax credits in the Inflation Reduction Act.
Makes it easier for companies and banks to rip consumers off with unfair and hidden junk fees by eliminating the Consumer Financial Protection Bureau.
Raises housing costs by cutting funding for rental assistance, cutting funding for programs that help build housing, and raising mortgage costs for first-time homebuyers.
In response to the Republican budget plan, President Biden issued a statement : “My dad had an expression, ‘Don’t tell me what you value. Show me your budget, and I’ll tell you what you value.’ The Republican Study Committee budget shows what Republicans value. This extreme budget will cut Medicare, Social Security, and the Affordable Care Act. It endorses a national abortion ban. The Republican budget will raise housing costs and prescription drugs costs for families. And it will shower giveaways on the wealthy and biggest corporations. Let me be clear: I will stop them.
“My budget represents a different future. One where the days of trickle-down economics are over and the wealthy and biggest corporations no longer get all the breaks. A future where we restore the right to choose and protect other freedoms, not take them away. A future where the middle class finally has a fair shot, and we protect Social Security so the working people who built this country can retire with dignity. I see a future for all Americans and I will never stop fighting for that future.”
It doesn’t matter that Trump’s preposterously named “A New Foundation for American Greatness” budget is “dead on arrival” according to even staunch Republican, Texas Senator John Cornyn. Much of it is the long-time wet dream of Paul Ryan and Republicans whose singular ambition has been to destroy the New Deal, Square Deal, Great Society. They would eliminate the minimum wage, child labor laws, food and product safety, Clean Air & Water protections, Social Security and Medicare and most notably Medicaid, sell off national parks and monuments to mining and oil and gas industrialists. And this is before taking into account tax “reform” that would take $2 trillion out of the national budget to put into the pockets of the wealthiest and corporations, so they have even more extra pocket change to spend on political campaigns.
Indeed, the Trump budget is everything that the Republicans have been dying to do, but didn’t dare. But Trump doesn’t care. He has shown that it really isn’t hard atall to cut the budget when you really don’t care what the numbers represent,when you have no clue and no interest.
The Trump Budget is built on “Trumponomics, as Office of Management and Budget Director Mike Mulvaney proudly exclaimed, “It’s a taxpayer-first budget, going line by line through the budget, trying to put yourself in the shoes of the people who are paying for those lines….What Trumponomics is and what this budget is a part of is an effort to get to sustained 3 percent economic growth in this country again..And by the way, we do not believe that that is something fanciful.”
Indeed, this is a “tough love” approach to force malingerers off things like food stamps – it’s not non-living wages paid by companies pocketing record profits that keep workers below the poverty line that’s the problem.
“Getting people back to work. Create an environment where people more comfortable staying at …We no longer measure compassion by the number of programs or number of people on programs. We measure success by how many get off programs and have success in lives.”
But the figures don’t actually add up.
Economists from across the spectrum say that the math that underlies the main selling point for Trump’s budget, that it will “balance the budget” in 10 years, is a crock. It doesn’t take into account the $1 trillion or so in tax cuts that will go entirely to the wealthiest and to corporations that Trump sketched out; it assumes a 3% rate of annual economic growth, which would mean 50% more economic activity, which everyone says is beyond pie-in-the-sky; and it actually double-counts $2 trillion, prompting headlines like this one from Slate, “Donald Trump’s budget is based on a hilarious accounting fraud” and “The dumb accounting error at the heart of Trump’s budget “ from Vox.
Health care a right, not a privilege? Trump’s budget projects a 28.3% DROP in spending for health services, $2 trillion less spending, over a 10-year period – despite the aging and increase in population. This includes a 27% decrease in spending for the Centers for Disease Control & Prevention (imagine another Ebola, Zika or Swine Flu outbreak); 25% drop in Substance Abuse and Mental Health Services Administration (even as Trumpcare will no longer include mental health or addiction), 25% less spending for research and training, including 25% cut for the National Institutes of Health (no interest in finding therapies or cures for Zika, Alzheimers or “orphan” diseases that wouldn’t be profitable enough for Big Pharma); 40% cut for the Food & Drug Administration (let Big Pharma do what they will); 15% drop in food safety and inspection; 17% cut to the Consumer Product Safety Commission, 16% cut in already strapped Occupation and Mine Safety and Health spending even as he overturned regulations.
$1.4 trillion gap in infrastructure spending to repair decaying roads, bridges airports? Trump would cut Transportation spending by 25% cut (65% cut to National Infrastructure Investments; 50% cut to air transportation which is already woefully in need of upgrades); 28% cut to Education, Training, Employment and Social Services.
His cuts to environmental protection – on top of slashing regulations that give communities a fighting chance to protect their air, water and public health – amount to Hague Tribunal level of war criminality for what he will do to the planet, let alone our communities. The allocation is cut 27.1% – $132 billion worth – including a 34% cut in Pollution control and abatement, 42% cut in Regulatory, enforcement and research programs, 37% cut in Hazardous substance superfund ($330 million less in 2018).
Trump would end funding for the Clean Power Plan, international climate change programs, climate change research and partnership programs, and related efforts—“saving” over $100 million in 2018. He cuts out $129 million in funding for the EPA’s Office of Enforcement. He cuts out $233 million in 2018 for the EPA’s Research & Development (ie. climate change science). It eliminates more than 50 EPA programs, $347 million worth in 2018; and ends funding for specific regional efforts such as the Great Lakes Restoration Initiative and the Chesapeake Bay, amounting to $427 million in 2018.
Trump would cut General Science, Space & Technology spending by 14.7%, including 18.9% cut to General Science and basic research.
International Affairs would be cut nearly in half, including 26% cut in spending for Global Health programs; 74% cut in Refugee programs; 66% percent cut in International Disaster Assistance, 83% cut in “other” development and humanitarian assistance.”
Setting aside for a moment that Trump and his billionaire friends don’t actually pay their fare share of taxes, nor do many profitable American companies which have stashed $2 trillion in offshore accounts, the Republicans’ approach is what Hillary Clinton correctly observed, “trickle down economics on steroids.” It didn’t work with Reagan or George W. Bush. And this is even worse.
No matter: the extremity of Trump’s proposed budget, the callousness of it, will give cover to Ryan and the House Republicans and make anything they do seem “moderate”, even “compassionate.” So they cut Medicaid by $600 billion instead of $866 billion and call it a “win” for the little people; they cut the State Department by 20% instead of 30% and pat themselves on the head; they cut the EPA by 25% instead of 31%.
Here’s what Senator Elizabeth Warren (D-Massachusetts) wrote: “Speaker of the House Paul Ryan says that Donald Trump’s new budget is ‘right on the target.’ That’s all you need to know about just how devastating Trump’s budget will be for working families in Massachusetts and across this country.
“It’s obscene:
$5 billion in cuts to public education
$73 billion in cuts to Social Security
$191 billion in cuts to food stamps
$610 billion in cuts to Medicaid (and that’s in addition to the $880 billion the House Republicans are slashing in their so-called “health care” bill)
“Those are just a few of the highlights. What else gets cut? Money for children’s health care, money to combat the opioid epidemic, money for medical research, money for the Corporation for Public Broadcasting, and so much more.
“This budget is ‘right on the target’ only if the target is to sucker-punch kids, seniors, the poor and the sick. If the Republicans make good on this budget, they could deliver the final blow to America’s working families.
“We don’t build a future by ripping health care away from tens of millions of people. We don’t build a future by starving education, by letting our roads crumble and our bridges collapse, and by shutting down the big pipeline of medical and scientific research in this country.
“We build a future by making the investments in ourselves and all of our people – so the next kid can get ahead, and the kid after that, and the kid after that. We’ve done this before in our country, and we can do it again.
”Budgets aren’t just about dollars and cents. Budgets are about our values, and this budget is morally bankrupt,” Warren wrote.
Trump and the Republicans would cut out all the things that have “made America great,” and a world leader in innovation and entrepreneurship, not to mention the main tools for spreading democracy and human rights across the globe (through capitalist investment, which is what China and Russia are now doing).
This is the midst of an actually strong economy, near “full employment” and as we keep hearing, a record stock market.
The Trump budget is the essence of everything that Trump is doing to weaken the US as an economic power, a world power, and its ability to be a moral leader, that Reaganesque “beacon on a hill” of political righteousness.
As we marked Memorial Day this past weekend, a New York Times book review of “The Allure of Battle: A History of How Wars Have Been Won and Lost,” by Cathal J. Nolan, pointed out that “Generally, one side, usually the one with a smaller economy and population, becomes exhausted, and gives up. Talk about élan and audacity all you like, he counsels, but what wins wars is demography and economic strength.” That is to say, winning a war is more a matter of “hearts and minds” vs. “bombs and brigades” as we have been seeing in America’s longest wars, in Afghanistan and Iraq.
Everything that Trump has done so far (putting aside the fact that he is an illegitimate occupier of the Oval Office by selling out to an adversary government), will weaken the US as an economic power, a world power, and its ability to be a moral leader, that Reaganesque “beacon on a hill” of political righteousness.
Indeed, Trump, who cozied up to the Saudis while hectoring NATO allies and the G7, on his “epic” overseas trip, came back declaring “a home run”, while Germany’s Angela Merkel told Europe, “We can no longer depend on the US or UK. We are on our own.”
New York State, along with other “blue” states like California, already send way more income tax money to Washington than we get back while the “red” states, which so pride themselves in low state taxes and low wages get far more than they send. Like tenants with a legal fight against their landlord, I would propose that New Yorkers collect their federal income tax money in an escrow account, to pay for services that should be paid by the federal government, such as police and security protection (which Trump is threatening to cut to New York and other states that don’t cooperate in his roundup of undocumented individuals), environmental restoration, health care for those whose subsidies have been eliminated, public schools, infrastructure repair, food stamps and school lunch program.
