House Republicans Propose Budget to Cut Medicare, Social Security, and ACA While Favoring Wealthy

by millsvirtualmarketingsolutions 03/22/2024

Written by Stacy M. Brown

Less than two weeks after President Joe Biden’s State of the Union address, where he emphasized a vision for economic fairness for the middle class, the Republican Study Committee, representing most of the House GOP, has unveiled a plan that slashes Medicare, Social Security, and the Affordable Care Act (ACA) while favoring tax cuts for the wealthy.

In a precursor to what life will be like under another administration led by the four-times indicted, twice-impeached former President Donald Trump, House Republicans have put forward a budget proposal that directly contradicts those goals and threatens the health, livelihood, and viability of many American citizens – particularly seniors and those in need of health insurance coverage.

Less than two weeks after President Joe Biden’s State of the Union address, where he emphasized a vision for economic fairness for the middle class, the Republican Study Committee, representing most of the House GOP, has unveiled a plan that slashes Medicare, Social Security, and the Affordable Care Act (ACA) while favoring tax cuts for the wealthy.

Biden has vowed to oppose any attempts to cut Social Security or Medicare, promising to protect those vital programs in his recent address at the Capitol. “The president has kept his word by standing against the new House Republican budget, which he believes would harm hardworking families,” the White House said in a Fact Sheet released on Thursday, March 21.

The Republican plan proposes cuts to Medicare and Social Security and aims to increase prescription drug, energy, and housing costs while providing tax breaks for the affluent. One notable aspect of the proposal is the intention to raise the Social Security retirement age, which has drawn criticism from many quarters.

According to the budget details, it calls for substantial cuts to Social Security amounting to over $1.5 trillion, including proposals to increase the retirement age to 69 and reduce disability benefits. Additionally, Medicare would face increased costs for seniors as the plan seeks to eliminate Medicare’s ability to negotiate prescription drug prices and repeal provisions of the Inflation Reduction Act, such as the $35 insulin cap and the $2,000 out-of-pocket limit.

Moreover, the proposed budget targets Medicaid, ACA, and the Children’s Health Insurance Program with cuts totaling $4.5 trillion over ten years, potentially leaving millions without access to essential healthcare services. “These measures risk returning to a time when individuals could be denied coverage due to pre-existing conditions or charged exorbitant premium,” the White House noted.

Critics have argued that the Republican budget heavily favors the wealthy and large corporations, with over $5.5 trillion in tax cuts directed toward these entities. The plan includes provisions to extend tax cuts from the Trump era, eliminate taxes on billion-dollar corporations, and provide substantial tax breaks for billionaire investors.

Further, the budget is being criticized for its potential adverse effects on job creation and investment, particularly in clean energy sectors, and for dismantling consumer protections such as those provided by the Consumer Financial Protection Bureau.

House Republicans’ proposed budget has ignited a contentious debate over the future direction of economic policy in the United States. While proponents argue for fiscal responsibility and reduced government spending, opponents fear that the proposed cuts would disproportionately impact middle- and lower-income families while further enriching the wealthiest individuals and corporations. The coming weeks will likely see intense negotiations and deliberations as lawmakers grapple with these competing visions for the nation’s economic future.

“President Biden has a different vison 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,” the White House stated. “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.”