As always the devil is in the details. And now that the House has passed the Senate budget resolution, Congress has the framework to fast-track sweeping tax reform with only Republican votes. Yet, as much as congressional leaders and President Trump would like to call this effort tax cuts for the middle class, the winners of the Trump tax cuts will be huge corporations and the wealthiest of Americans.
That's because the tax reform scheme is projected to explode the federal deficit by at least $1.5 trillion. Of course this isn't going to sit well with budget hawks and those clamoring for a balanced budget. So how will they pay for these massive tax cuts for the rich? By targeting Medicare, Medicaid and perhaps Social Security — because that's where the money is.
Budget hawks (including President Trump's budget director Mick Mulvaney and House Speaker Paul Ryan) have long dreamed of cutting Social Security and Medicare. Once their tax plan balloons the deficit, they will have the perfect excuse for gutting those programs — even though Social Security and Medicare Part A are completely self-funded by workers' payroll contributions; they contribute not a penny to the deficit.
Despite President Trump's protestations that the GOP tax plan won't benefit the rich, that's precisely who would reap the biggest gains. (Trump himself could save an estimated $1 billion in taxes!)
According to an economist who served in the administrations of Presidents Reagan and George H. W. Bush, Bruce Bartlett: "Tax cuts and tax rate reductions will not pay for themselves; they never have. Republicans don't even believe they will, they are just excuses to slash spending for the poor when revenues collapse and deficits rise."
With your support we will continue to put massive constituent pressure on members of Congress to reject any tax plan that guts Medicare and Medicaid in order to pay for tax cuts that benefit the wealthiest 1%.
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