Democrats Use CBO Report To Warn Tax Bill Will Trigger Medicare Cuts
The Congressional Budget Office warned that the tax bill could set off a budget rule that would necessitate cuts to Medicare of as much as $25 billion next year.
The New York Times:
Republicans May Target Entitlement Programs To Reduce Deficit
Republican lawmakers have largely dismissed concerns about how their $1.5 trillion tax cut will add to the federal deficit. Now, some Democrats are warning the tax rewrite will ultimately be financed by gutting entitlement programs like Social Security and Medicare. The possibility of cuts to safety net programs appeared more likely on Tuesday, as the Congressional Budget Office warned that the tax bill could set off an arcane budget rule that would make deep cuts to Medicare over the next decade. (Rappeport, 11/15)
Roll Call:
CBO: Tax Plan Could Cut Medicare By $25 Billion
Some members are concerned the GOP tax overhaul would lead to mandatory multi-billion dollar cuts to programs such as Medicare. There’s not enough mandatory spending up for grabs under current law to execute the full automatic, across-the-board spending cuts to entitlement programs that would be triggered if Republicans push through deficit-increasing tax cuts by year’s end. That was the message from the Congressional Budget Office Tuesday in a report to House Minority Whip Steny H. Hoyer, D-Md. CBO calculated if the tax package were to add up to $1.5 trillion to the deficit over 10 years as currently expected, automatic cuts required under the 2010 pay-as-you-go law would amount to $136 billion in fiscal 2018. (Mejdrich, 11/14)
Columbus Dispatch:
Mnuchin A Little Shaky On A Couple Of Facts During Columbus Visit
When asked if cuts to entitlements such as Medicare are needed to help pay for a Republican tax-cut plan, Treasury Secretary Steven Mnuchin replied Tuesday in Columbus: “I don’t anticipate that to be the case.” But a few hours later, the nonpartisan Congressional Budget Office said Medicare cuts probably would be needed because of the tax revamp unless Congress waives the 2010 “pay as you go” law or takes other action. The budget office found that $136 billion in automatic budget cuts — including a 4 percent, or $25 billion, reduction in Medicare health care for seniors — would be required next year to offset the increase in the national deficit stoked by the planned tax cut. (Ludlow, 11/14)
