Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

Dear Common Dreams Readers:
Corporations and billionaires have their own media. Shouldn't we? When you “follow the money” that funds our independent journalism, it all leads back to this: people like you. Our supporters are what allows us to produce journalism in the public interest that is beholden only to people, our planet, and the common good. Please support our Mid-Year Campaign so that we always have a newsroom for the people that is funded by the people. Thank you for your support. --Jon Queally, managing editor

Join the small group of generous readers who donate, keeping Common Dreams free for millions of people each year. Without your help, we won’t survive.

The GOP tax bill, called the Tax Cuts and Jobs Act, would disproportionately benefit the wealthy, and new analysis released Tuesday showed that Medicare would suffer automatic cuts under the legislation. (Photo: @thehill/Twitter)

GOP Tax Bill Would Trigger $25 Billion in Cuts to Medicare, Warns CBO

Senior citizens' healthcare spending would be on the chopping block to make up for the $1.5 trillion deficit increase brought on by the House tax plan

Julia Conley

Progressives on Tuesday urged Trump critics to voice their opposition to the tax bill that House Republicans are hoping to push through, after the Congressional Budget Office (CBO) reported that the legislation could put billions of dollars in Medicare spending in danger.

Because the bill would add an estimated $1.5 trillion to the federal deficit over the next decade, the CBO said in a letter to Congress, the government would be required to automatically cut mandatory spending should the bill pass, under "pay-as-you-go" rules, also known as PAYGO.

To make up for the deficit increase, the government would have to cut $150 billion in spending every year for the next decade.

Under PAYGO, Medicare spending could legally be cut by up to four percent, amounting to $25 billion dollars in cuts next year for the program under which senior citizens are provided with health insurance.

In an interview with the Washington Post, the American Association of Retired Persons (AARP)'s director of financial security said that a tax plan that takes money away from healthcare programs for the elderly would not be sustainable.

"We think having a simpler tax code is a great idea, but we also need a tax code that produces enough revenue to pay for programs, including Medicare and Medicaid," said Cristina Martin Firvida.

The CBO also estimated that an additional $85-90 billion could be cut from other programs including agricultural subsidies and funds linked to the Affordable Care Act and federal student loans.

The House could vote on its tax bill as early as this week, and opponents of the legislation made urgent calls for action from the Trump resistance.


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

"I'm sure this will be all over the corporate media, right?"
That’s what one longtime Common Dreams reader said yesterday after the newsroom reported on new research showing how corporate price gouging surged to a nearly 70-year high in 2021. While major broadcasters, newspapers, and other outlets continue to carry water for their corporate advertisers when they report on issues like inflation, economic inequality, and the climate emergency, our independence empowers us to provide you stories and perspectives that powerful interests don’t want you to have. But this independence is only possible because of support from readers like you. You make the difference. If our support dries up, so will we. Our crucial Mid-Year Campaign is now underway and we are in emergency mode to make sure we raise the necessary funds so that every day we can bring you the stories that corporate, for-profit outlets ignore and neglect. Please, if you can, support Common Dreams today.

 

Right-Wing Justices Should Be Impeached for Lying Under Oath, Says Ocasio-Cortez

"We have a responsibility to protect our democracy," said the New York Democrat. "That includes holding those in power who violate the law accountable."

Kenny Stancil ·


'Infuriating': Biden Rebuked for Continued Opposition to Supreme Court Expansion

"What does Biden 'agree' with doing?" Mehdi Hasan asked. "What does the leader of this country want to do to stop the increasingly fascistic assault on our democratic institutions and basic rights?"

Kenny Stancil ·


'We Need Action': Biden, Democrats Urged to Protect Abortion Access in Post-Roe US

"The Supreme Court doesn't get the final say on abortion," Sens. Elizabeth Warren and Tina Smith wrote in a new op-ed.

Kenny Stancil ·


Motorist 'Tried to Murder' Abortion Rights Advocates at Iowa Protest, Witnesses Say

Although one witness said the driver went "out of his way" to hit pro-choice protestors in the street, Cedar Rapids police declined to make an arrest.

Kenny Stancil ·


'A Hate Crime': Oslo Pride Parade Canceled After Deadly Shooting at Gay Bar

A 42-year-old gunman has been charged with terrorism following what Norway's prime minister called a "terrible and deeply shocking attack on innocent people."

Kenny Stancil ·

Common Dreams Logo