Trump tax law could cause Medicare cuts if Congress doesn't act, CBO says
Share and Follow


WASHINGTON (AP) — The federal budget deficits caused by President Donald Trump’s tax and spending law could trigger automatic cuts to Medicare if Congress does not act, the nonpartisan Congressional Budget Office reported Friday.

The CBO estimates that Medicare, the federal health insurance program for Americans over age 65, could potentially see as much as $491 billion from 2027 to 2034 if Congress does not act to mitigate a 2010 law that forces across-the-board cuts to many federal programs once legislation increases the federal deficit. The latest report from CBO showed how Trump’s signature tax and spending law could put new pressure on federal programs that are bedrocks of the American social safety net.

Trump and Republicans pledged not to cut Medicare as part of the legislation, but the estimated $3.4 trillion that the law adds to the federal deficit over the next decade means that many Medicare programs could still see cuts. In the past, Congress has always acted to mitigate cuts to Medicare and other programs, but it would take some bipartisan cooperation to do so.

Democrats, who requested the analysis from CBO, jumped on the potential cuts.

“Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts — and they did it anyway,” said Rep. Brendan F. Boyle, the top Democrat on the House Budget Committee, in a statement. “American families simply cannot afford Donald Trump’s attacks on Medicare, Medicaid, and Obamacare.”

Hospitals in rural parts of the country are already grappling with cuts to Medicaid, which is available to people with low incomes, and cuts to Medicare could exacerbate their shortfalls.

As Republicans muscled the bill through Congress and are now selling it to voters back home, they have been highly critical of how CBO has analyzed the bill. They have also argued that the tax cuts will spur economic growth and pointed to $50 billion in funding for rural hospitals that was included in the package.

___

Share and Follow
You May Also Like
UNC professor on leave over ties to far-left gun club once headlined Harvard panel on armed activism

UNC professor on leave over ties to far-left gun club once headlined Harvard panel on armed activism

NEWYou can now listen to Fox News articles! The Trump administration announced…
Trump’s bid to fire Fed’s Lisa Cook to be heard by Supreme Court in January

Supreme Court to Hear Trump’s Attempt to Remove Fed’s Lisa Cook in January

The Supreme Court on Wednesday said it will hear oral arguments over…
Inside Nicole Kidman and Keith Urban's divorce documents

Exploring the Divorce Papers of Nicole Kidman and Keith Urban

Nicole Kidman will become the primary residential parent of her daughters Sunday Rose,…
Live | Jacksonville rapper Ksoo in court seeking new trial

Live Update: Sentencing for Jacksonville Rapper Ksoo and Co-Defendant ATK Scotty Following Murder Conviction

Ksoo and his co-defendant Leroy Whitaker, also known as ATK Scotty, are…
Judge finds Trump policy targeting pro-Palestinian campus activists unlawful

Court Rules Against Trump Policy Aimed at Pro-Palestinian Campus Activists

A federal judge on Tuesday ruled that President Trump’s crackdown on pro-Palestinian…
Fox News star Jessica Tarlov has VERY tense exchange with Brett Baier

Jessica Tarlov and Brett Baier Engage in Heated Exchange on Fox News

Fox News host Jessica Tarlov lost it live on-air during a heated…
How the government shutdown will affect student loans, FAFSA and the Education Dept.

Impact of a Government Shutdown on Student Loans, FAFSA, and the Department of Education

Already diminished by cuts by the Trump administration, the U.S. Education Department…
Anti-Defamation League retires glossary of extremist groups after backlash for including Charlie Kirk's TPUSA

Anti-Defamation League retires glossary of extremist groups after backlash for including Charlie Kirk’s TPUSA

NEWYou can now listen to Fox News articles! The Anti-Defamation League (ADL)…