Tag: social security
Elon Musk

Republicans Confirm Musk Will Urge Social Security And Medicare Cuts

Republican lawmakers on Thursday signaled a willingness to target Social Security and other mandatory programs after meeting with Elon Musk and Vivek Ramaswamy, the billionaire pair President-elect Donald Trump chose to lead a new commission tasked with slashing federal spending and regulations.

Though the GOP's 2024 platform pledged to shield Social Security, the party has reverted to its long-held position in the weeks since Trump's election victory, with some lawmakers openly attacking the program while others suggest cuts more subtly by stressing the supposed need for "hard decisions" to shore up its finances. (Progressives argue Social Security's solvency can be guaranteed for decades to come by requiring the rich to contribute more to the program, a proposal Republicans oppose.)

On Thursday, Rep. Ralph Norman (R-SC) emerged from a meeting with Musk and Ramaswamy with the message that "nothing is sacrosanct."

"They're going to put everything on the table," said Norman, one of the wealthiest members of Congress.

After airing Norman's remarks, Fox Business reported that Musk and Ramaswamy told lawmakers that no federal program is safe from cuts, "and that includes Social Security, Medicare, and Medicaid."

NBC News congressional correspondent Julie Tsirkin said Thursday that after meeting with Musk, Sen. John Thune (R-S.D.)—who was recently elected Senate majority leader for the upcoming Congress—told her that "perhaps mandatory programs are areas that they're looking to make cuts in, like Social Security, for example."

"But again, no specifics were laid out there," Tsirkin added.

Thune has previously voiced support for raising Social Security's retirement age, a change that would cut benefits across the board.

In the days leading up to their Capitol Hill visit, both Musk and Ramaswamy took swipes at Social Security, Medicare, and Medicaid and made clear the programs would be in the crosshairs of their advisory commission, which is examining ways to slash federal spending without congressional approval.

Earlier this week, Musk amplified a series of social media posts by Sen. Mike Lee (R-UT), who once said he hopes to "get rid of" Social Security, Medicare, and Medicaid. Defenders of Social Security saw Lee's thread, and Musk's apparent endorsement of it, as a declaration of war on the New Deal program.

Days later, Ramaswamy said in an interview with CNBC that "there are hundreds of billions of dollars of savings to extract" from Social Security, Medicare, and Medicaid, claiming the programs are rife with waste, fraud, and abuse.

"People love to have lazy armchair discussions about, oh, are you going to make cuts to entitlements or not, when, in fact, the dirty little secret is that many of those entitlement dollars aren't even going to people who they were supposed to be going to in the first place," said Ramaswamy, advancing a narrative that observers warned could be used to justify additional bureaucratic barriers making it harder for eligible people to receive benefits.

Sen. Sheldon Whitehouse (D-RI), chairman of the Senate Budget Committee, said Thursday that the Trump-GOP agenda is "so predictable."

"Tax cuts for billionaire donors; benefit cuts for people on Social Security—how the billionaires loot our country (what, not rich enough already, fellas?)," Whitehouse wrote on social media.

In a column on Thursday, MSNBC's Ryan Teague Beckwith wrote that "Republicans somehow keep coming back to the idea of cutting Social Security" despite widespread opposition to such cuts among the American public.

"Would Trump try to cut Social Security? It's hard to say. Over the years, he has staked out every possible position on Social Security—sometimes within hours of each other," wrote Beckwith, noting that Trump previously called the program a "huge Ponzi scheme" and backed calls to raise the retirement age.

"So if Republicans—or Musk—decide to propose changes to Social Security benefits," Beckwith added, "it's possible that he might go along with it."

Reprinted with permission from Alternet.

'Please Take Care Of Us': Low-Income Trump Voters Fear Budget Cuts

'Please Take Care Of Us': Low-Income Trump Voters Fear Budget Cuts

At his 2024 campaign rallies, Donald Trump repeatedly blamed President Joe Biden and Vice President Kamala Harris for inflation — which he promised to fix if he won the election. And that messaging proved effective: Trump, according to the Cook Political Report, won 312 electoral votes and defeated Democratic presidential nominee Harris by roughly 1.5 percent in the popular vote.

One of the swing states that Trump won was Pennsylvania, where he promised low-income voters that he would bring down inflation if he won.

According to Washington Post reporter Tim Craig, those voters will have a rude awakening if they experience benefit cuts during Trump's second administration.

In an article published the day after Christmas, Craig cites New Castle, Pennsylvania, north of Pittsburgh, as a place where Trump performed well among low-income voters.

"Trump carried the Pennsylvania city of New Castle by about 400 votes, becoming the first Republican presidential candidate to win here in nearly 70 years," Craig explains. "More than 1 in 4 residents live in poverty, and the median income in this former steel and railroad hub ranks as one of the lowest in Pennsylvania. New Castle's poorest residents weren't alone in putting their faith in Trump. Network exit polls suggest he erased the advantage Democrats had with low-income voters across the country."

Craig adds, "Fifty percent of voters from families with an income of less than $50,000 a year cast their ballots for Trump, according to the data, compared with 48 percent for Vice President Kamala Harris."

But now, according to Craig, "low-income Americans who voted for Trump" are hoping he will "keep their benefits intact" even though other Republicans are urging the president-elect "to reduce federal spending."

In New Castle, Craig notes, "federal benefits"—including food stamps and Medicaid — "have helped keep residents afloat."

Lori Mosura, a struggling New Castle resident, 2024 Trump voter and single mother who receives food stamps, told the Post, "We helped get you in office; please take care of us. Please don't cut the things that help the most vulnerable."

Reprinted with permission from Alternet.

GOP Governor Urges Medicare, Social Security To Be Cut And 'Privatized'

GOP Governor Urges Medicare, Social Security To Be Cut And 'Privatized'

New Hampshire Republican Governor Chris Sununu is bullish on a billionaire-led effort to cut social safety nets for working-class Americans — including the political third rail of Social Security.

Semafor reporter David Weigel recently interviewed Sununu, who is retiring after his successor, Republican Governor-elect Kelly Ayotte, assumes office on January 8. The Granite State governor expressed optimism about billionaire Tesla and SpaceX CEO Elon Musk's "Department of Government Efficiency," or "DOGE," (which is not yet an actual federal agency authorized by Congress) which he is co-leading with billionaire pharmaceutical investor Vivek Ramaswamy.

While Musk and Ramaswamy's advisory panel is expected to recommend the elimination of various labor and environmental regulations and the firing of thousands of public sector workers, Sununu is particularly hoping they will pursue cuts to both Medicare and Social Security. Sununu compared Musk and Ramaswamy's efforts to former President George W. Bush's failed proposal to privatize Social Security in 2005.

"George W. Bush was absolutely right, and he’s been proven right time and time again," Sununu said. "You have to move that retirement age. That’s just so obvious... Whether it’s 62 or 64 or 65, find the right number that works. Do it for the next generation. Allow some of this to be privatized. Those models have proven to be absolutely rock solid, and work."

"George W. Bush was a couple of senators away from getting this done," he added. "So many of America’s problems would be cured."

Sununu specifically argued that the proposed austerity measures were necessary, saying: "In about eight years, Social Security benefits drop to 83 percent, Medicare goes bankrupt [and] the interest rates come due." The first point seems to come from the May 2024 Social Security trustees report, which states that the fund reserves that help pay for Social Security benefits will be spent down by 2035.

However, as Sen. Bernie Sanders (I-VT) and others have pointed out, Social Security could be made solvent for decades by simply removing the cap on paying into the fund. Currently, the super-rich only have to pay a 6.2 percent payroll tax of the first $132,900 they earn in a year into Social Security. But Sanders argues if that cap were removed, Social Security benefits would be fully paid for 52 more years. The Vermont senator added that seniors who earn less than $16,000 per year would get an additional $1,300 per month in benefits if that cap were removed.

"When Republicans say they want to run back George W. Bush’s plan to destroy Social Security, believe them," Social Security Works executive director Alex Lawson told AlterNet. "Elon Musk's slash and burn commission is a transparent plot to gut Social Security, Medicare, and Medicaid."

Like Social Security, Medicare is also not a contributor to the federal deficit. Just as both employers and employees contribute 6.2 percent toward Social Security, they also contribute a 1.45 percent Medicare tax from every paycheck to keep the program funded. And unlike Social Security, there’s no wage cap on paying into that fund.

While Medicare's Hospital Insurance fund is expected to reach its limit in 2026, this can be remedied by — as the Center for Budget and Policy Priorities (CBPP) recommended in 2019 — repealing language in the 2017 Tax Cuts and Jobs Act that eliminated the individual mandate built into the Affordable Care Act. The individual mandate decreased the number of uninsured patients, which decreased the amount Medicare paid for uncompensated care. The CBPP also called to reinstate the Independent Payment Advisory Board, which was projected to help slow the growth of increasing costs.

Reprinted with permission from Alternet.

New GOP Senate Leader Is Ex-Lobbyist Who Aims To Slash Social Security

New GOP Senate Leader Is Ex-Lobbyist Who Aims To Slash Social Security

Senate Republicans on Wednesday elected Sen. John Thune of South Dakota—a former corporate lobbyist and close ally of Sen. Mitch McConnell—as the leader of their conference for the upcoming term, when the GOP will have a 53-seat majority.

Republican lawmakers chose Thune over Sens. John Cornyn (R-Texas) and Rick Scott (R-Fla.), who was favored by allies of President-elect Donald Trump.

"Senators have received angry phone calls from constituents demanding to know how their representatives plan to vote, following MAGA world's embrace of Scott," The Washington Post reported. The leadership election was conducted via secret ballot.

In a statement Wednesday, Thune said he is "extremely honored to have earned the support" of the Senate GOP conference and stressed that "this Republican team is united behind President Trump's agenda."

"Our work starts today," Thune added.

Before winning election to the Senate in 2004, Thune worked as a lobbyist for several sectors including the railroad industry. The Lever reported last year that as part of his lobbying work for the Dakota, Minnesota, and Eastern (DM&E) Railroad, Thune "helped the company procure a $230 million loan from the Federal Railroad Administration."

"In 2015, Thune reprised his advocacy for the rail industry, leading an effort to repeal an Obama administration regulation requiring improved, electronic braking systems on some hazmat trains," the outlet added. "The following year, he received the first-ever 'Railroad Achievement Award' presented by the Association of American Railroads, the industry's main lobbying group."

Thune is also "one of the biggest recipients of oil and gas money in Congress," the youth-led Sunrise Movement noted Wednesday following his election as leader of the incoming GOP Senate.

Over the course of his Senate career, Thune has received more than $1.16 million in campaign donations from the fossil fuel industry, according to the campaign finance watchdog OpenSecrets.

Thune's top contributor between 2019 and 2024 was the American Israel Public Affairs Committee (AIPAC), the right-wing pro-Israel lobbying group.

"Thune has called for taking the debt limit hostage to force cuts to Social Security."

Thune will take the reins of the Senate GOP conference as the party readies another round of tax cuts for the rich and large corporations—one of Trump's top priorities. Thune is a leading advocate of repealing the estate tax, a move that would benefit a small number of wealthy Americans.

Congress is also barreling toward another potentially damaging fight over the debt ceiling, which is set to be reinstated on January 2, 2025.

Thune has previously expressed support for leveraging the debt limit—and the threat of a catastrophic default—to secure steep cuts to federal spending and possible changes to Social Security such as raising the retirement age, which would slash benefits across the board. Social Security Works, a progressive advocacy group, voiced alarm over Thune's debt ceiling stance following his election as Senate Republican leader on Wednesday.

"Thune has called for taking the debt limit hostage to force cuts to Social Security," Nancy Altman, the group's president, said in a statement.

Reprinted with permission from Alternet.

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