Tag: social security
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.

Elon Musk

When Republicans Warn Us About Their Ruinous Agenda, Better Believe Them

It’s a lesson that we all should have learned many years ago: When Republicans tell you what they mean to inflict on you and your family, better believe them.

The most painful example in recent years of the public’s failure to comprehend what was coming -- despite dozens of announcements -- is the Republican right's successful assault on reproductive freedom. Donald Trump loudly and repeatedly promised a majority of Supreme Court justices who would overturn Roe v. Wade, as did the Republican senators who confirmed them. And still many Americans seemed to be surprised when the high court ripped down principle and precedent to undo that fundamental right.

Now, in the final days of this election campaign, we are hearing from Republicans (and their billionaire masters) what they plan to do if Trump returns to the White House. They have a sweeping agenda to impoverish the middle class while pursuing power and privilege for themselves.

House Speaker Mike Johnson just issued a clear warning that they still yearn to cripple America's health care system in the name of their "free market" utopia. While he and Trump both deny that they will try again (for the 62nd time!) to repeal the Affordable Care Act, Johnson vowed that “health care is going to be a big part of the agenda” should Republicans win – and that their aim will be “massive reform” that “takes a blowtorch to the regulatory state.” This blather portends the end of the reforms that protect people with pre-existing conditions and allow the young to get coverage on their family’s insurance until age 26. Neither those nor other crucial ACA protections would survive those massive changes that neither Trump nor Johnson will specify before the election.

And that’s merely the opening gambit in the Trump Republican scheme to ruin their fellow Americans.

The far-right financiers surrounding Trump have realized that his obsession with tariffs can be repurposed to line their own pockets – so they’re suddenly eager to abandon the principles of free trade they once cherished. For billionaires like Elon Musk and Peter Thiel, the tariff scheme is attractive simply as a form of regressive taxation, siphoning hundreds of billions of dollars from ordinary consumers in the form of far higher prices. Those tariff revenues could replace the proceeds of the progressive income tax – which the rich hate to pay -- while shifting the burden onto middle-class and poor families.

But Musk has even more nasty surprises in store, as he recently suggested on his X social media platform. He has invested vast sums – upward of $75 million or more – in Trump’s campaign, for which he expects to be named reichsmarshall of "government efficiency,” with unaccountable power to slash programs and fire employees. The world’ richest man breezily advised middle-class Americans that we should expect to suffer “hardship” in the early days of a Trump presidency, owing to the enormous cuts and layoffs he will dictate. (Of course he also promises a “sustained recovery” in the wake of economic disaster, although historically that isn’t how things work out under Republican administrations. You can look it up.)

According to Musk, his objective in a Trump regime would be to cut $2 trillion from future spending – even as Trump has promises trillions more in tax cuts for the billionaires. How does that math work? It doesn’t work at all unless, as J.D. Vance recently confided to a podcast host, Musk’s “government efficiency commission” sharply reduces Social Security and Medicare payments. “I’ve spoken with Elon a little bit about [the task force],” said the Republican vice presidential nominee. “And the thing that’s complicated about this, man, is it’s going to look much different in, say, the Department of Defense versus Social Security.”

We know Trump won’t cut defense spending, which he has always sought to increase with his Space Force and other boondoggles. The only alternative will be enormous cuts in Social Security and Medicare, which account for about $2 trillion in spending annually.

Optimists may imagine that Musk, who no doubt considers himself a “stable genius,” will come up with new ways to save trillions without harming the American people or the economy. Unfortunately his record as an executive is not reassuring. Upon purchasing Twitter (later renamed “X”), he dismissed about 80 percent of the staff and turned the site into a haven for neo-Nazis and the other extremists and conspiracy theories he apparently admires. The company's market value has never recovered and his investment has roughly the same value as if he had put a blowtorch to $44 billion in cash.

The truth about Musk as a businessman is that his profits have depended heavily on government subsidies from the beginning.

But that arrangement can still prop him up, so long as he and his cronies control the government. Musk, Thiel and the rest of the MAGA billionaires will tell you they are backing Trump because they want to “kill the woke mind virus” or “protect freedom” or some such cliched piffle. In fact they are driving a campaign to further enrich and empower themselves – and the rest of us are just road kill.

Trump Threatens The Stability Of Social Security

Trump Threatens The Stability Of Social Security

Donald Trump's tax and spending plans would add enormous amounts to the national debt, with some estimates as high as $15 trillion over a decade. But some of his tax cuts stand apart in threatening one of America's most revered programs, Social Security. They would essentially bankrupt it by 2031.

This is not some far-off worry. We're talking like six years from now. And the source of this scary news is the reliable and nonpartisan Committee for a Responsible Federal Budget.

How would Trump pull the legs out from under it? Start with his vow to stop taxing Social Security benefits. That sounds nice, but these taxes help fund the program. Add to that his call to exempt taxes for overtime pay and tips, further eating into Social Security payroll tax collections.

Seemingly unrelated stances would also speed up cuts in scheduled benefits. Trump's tariffs would unleash inflation, thus raising the program's cost-of-living adjustment. And his immigration plans would remove workers who pay into the system.

What a lot of people don't understand about Social Security is that there is no magical pile of government money to back up its promises. Social Security is largely self-funding by law. (Medicare is another story.) Social Security must pay for itself. Unlike the Treasury, it's not allowed to borrow.

This is how it works: Social Security payroll tax collections go into a trust fund. Any surplus funds left after benefits are disbursed get invested in special U.S. Treasury securities. These are loans to the federal government. Like other bonds, they collect interest and have to be paid back.

Foes of Social Security have long complained that general revenues are used to make good on these special Treasuries. True, but let us repeat. These securities represent loans to the government, not some new kind of spending. The Treasury must repay this debt just as it must back Treasury bonds held by China, Japan and investors all over the world. (Some on the right make the ludicrous tough-luck claim that the dough is already gone.)

The point here is that monkeying around with the flow of money going into the Social Security program is a way of deep-sixing public support for it. As president, Trump applied the same sneaky tactics in his attempt to kill the Affordable Care Act. Recall how he went repeatedly after its funding.

Shoring up Social Security will be necessary even without Trump's sabotage. The program is still forecast to be unable to meet promised payouts in 2035. But this is fixable with some overdue changes. One obvious step is raising the income level at which payroll taxes are charged. The maximum is now $168,600.

The Heritage Foundation, author of Project 2025, has an alternative plan: reduce benefits. It calls for raising the age, already hiked to 67, for collecting full benefits. So much for Americans worn out from years of hard physical labor.

Heritage also proposes lowering benefits to higher-income retirees. Two problems here. One is that, as noted, benefits to wealthier retirees are already taxed. The other is that reducing the program's value to better-off participants turns what was conceived as an earned benefit into something resembling welfare.

And there's Heritage's perennial plan to privatize the program, that is, expose beneficiaries to the whims of the stock market and other investments. Of course, no one is stopping future retirees from putting their money in stocks, crypto or trading cards. Social Security is best kept dull and simple.

Without changes in how Social Security is currently funded, benefits would be cut 23% by 2035. With Trump's tax plans, benefits would be slashed 33 percent. No two ways about it. Trump is threatening Social Security's stability.

Reprinted with permission from Creators.

Nonpartisan Study Shows Trump Would Bankrupt Social Security By 2031

Nonpartisan Study Shows Trump Would Bankrupt Social Security By 2031

Fox News host and Donald Trump adviser Sean Hannity claims that Vice President Kamala Harris is lying when she says Trump’s proposals would threaten the solvency of Social Security. But according to a new study, Trump’s tax plans would drain the Social Security Trust Fund in just six years, triggering devastating cuts to the payments seniors depend on if no further changes are made.

Trump’s “campaign proposals would dramatically worsen Social Security’s finances,” according to the analysis of the nonpartisan Committee for a Responsible Federal Budget (CRFB):

President Trump’s proposals to eliminate taxation of Social Security benefits, end taxes on tips and overtime, impose tariffs, and expand deportations would all widen Social Security’s cash deficits. Under our central estimate, we find that President Trump’s agenda would:

  • Increase Social Security’s ten-year cash shortfall by $2.3 trillion through FY 2035.
  • Advance insolvency by three years, from FY 2034 to FY 2031 – hastening the next President’s insolvency timeline by one-third.
  • Lead to a 33 percent across-the-board benefit cut in 2035, up from the 23 percent CBO projects under current law.
  • Increase Social Security’s annual shortfall by roughly 50 percent in FY 2035, from 3.6 to 4 percent of payroll.
  • Require the equivalent of reducing current law benefits by about one-third or increasing revenue by about one-half to restore 75-year solvency.

Trump adviser and Project 2025 contributor Stephen Moore has argued such changes are good policy because “we want people to keep working. We want to keep incentivizing people once they turn 65, or 66, or 70.”

Democrats, meanwhile, typically favor extending the solvency of Social Security by increasing taxes on wealthy Americans rather than cutting benefits for vulnerable seniors.

Fox News and its right-wing counterparts rarely discuss Social Security because they want Republicans to win elections and they recognize that the right’s proposals are generally politically toxic. When Trump suggested in a March interview that he would consider cutting Social Security benefits — a mainstay of right-wing punditry -- Fox ignored the remarks.

But when Trump’s propagandists talk about one of the most successful federal programs in history, which sustains tens of millions of American seniors, they stress that he and his party are committed to defending it, claiming suggestions otherwise are lies.

“At multiple rallies today in North Carolina, Harris also continued her long-running lie that Donald Trump wants to cut your Social Security,” Hannity complained last month. “But the official Republican Party platform and Donald Trump in his own words over and over again say just the opposite. As you can see on your screen, a complete and total lie from Kamala Harris.”

Hannity may be willing to take Trump at his word, but CRFB’s analysis shows Harris is correct that the former president’s plans would devastate Social Security.

Reprinted with permission from Media Matters.

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