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"After years of hard work and a lifetime of contributions, our seniors shouldn't have to worry about Republicans meddling with their Social Security," said one House Democrat.
A leaked email from acting Social Security Administration Commissioner Leland Dudek on Tuesday sparked a fresh wave of warnings about U.S. President Donald Trump and government-gutting billionaire Elon Musk privatizing the agency.
The Bulwark, an anti-Trump conservative news outlet, obtained Dudek's March 1 email to staff, which reportedly says in part that "we need to revitalize SSA operations by streamlining activities, outsource nonessential functions to industry experts, and reinstating human judgment and common sense into every decision at every level."
While Dudek did not elaborate on what outsourcing "nonessential functions" will look like, according to The Bulwark, Martin O'Malley, who led the agency under former President Joe Biden, warned that it could involve automation and the use of artificial intelligence to replace call centers staffed by people trained to help seniors and other beneficiaries sort out complex problems.
O'Malley also said that SSA employees he knows report a "toxic" work environment. He told the The Bulwark that "they are driving people out there with a viciousness that I believe will collapse the agency," which could result in an "interruption of benefits."
"We have a 50-year low in staffing while the baby boomer generation is swelling their ranks," O'Malley said. "That's the underlying reality here, and these guys appear hell-bent on breaking it. It seems they really want to break Social Security."
The former SSA commissioner isn't alone in expressing serious concerns about Dudek, the president, and Musk, head of the so-called Department of Government Efficiency (DOGE), which is leading the Trump administration's attack on federal agenices.
Responding to The Bulwark's reporting on the Musk-owned social media site X, House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) said that "after years of hard work and a lifetime of contributions, our seniors shouldn't have to worry about Republicans meddling with their Social Security. This is an attack on our nation's seniors—plain and simple."
Also weighing in on X, Congressman Mark Pocan (D-Wis.) declared that "in no way, shape, or form, should we privatize any aspect of Social Security."
Concerns have mounted following a series of events last week, including a wave of Social Security Administration leaders retiring and the agency telling staff that it would be implementing an "organizational restructuring that will include significant workforce reductions." The SSA confirmed a goal to have only 50,000 workers, which requires forcing out 7,000 people.
"With that came an announcement that the agency will consolidate its current 10 regional offices down to four, as well as reorganize headquarters," Government Executivereported. "And Elon Musk's DOGE operatives have canceled the leases for 45 field offices across the country, as well as the Office of Hearings Operations in White Plains, New York."
House Ways and Means Social Security Subcommittee Ranking Member John Larson (D-Conn.) this week led a letter to Dudek signed by over 150 of the chamber's Democrats, who warned that office closures and layoffs "will devastate SSA's ability to serve the public and deliver Social Security payments, inflicting backdoor benefit cuts on the American people."
"Social Security helps approximately 70 million beneficiaries—including seniors, people with disabilities, children, and their families—put food on the table, pay the rent, heat their homes, cover medical bills, and more," the House Democrats wrote. "Shuttering field offices and gutting SSA staffing has nothing to do with 'governmental efficiency.'"
Like O'Malley, they cited the already low staffing level that has led to customer service issues at the SSA. They stressed that office closures "and gutting staff would only deepen the crisis, chaos, and confusion. If the Trump administration is serious about efficiency in delivering benefits to the American people, it would ensure that SSA has the staff and offices needed to serve the public."
Senate Democrats are also sounding the alarm. Government Executivenoted that during a Monday press conference, Sen. Patty Murray (D-Wash.) accused Trump and Musk of "taking a wrecking ball" to the SSA while Sen. Ron Wyden (D-Ore.) warned that their actions are "a prelude to privatization."
"There are 20 years of data showing trickle-down economics doesn't work, yet today will still be a whole lot of revisionist history and wishful thinking on the singular largest failure of fiscal policy in recent memory," said Rep. Richard Neal.
As House Republicans prepare for Donald Trump's possible White House return by plotting to expand the billionaire and corporate tax cuts that were the cornerstone of the former president's first administration, congressional Democrats and advocates for working Americans warned Thursday that a second Trump term would bring more of the same inequality-exacerbating policies.
The GOP-controlled House Ways and Means Committee held a hearing Thursday on "expanding the success" of the 2017 Tax Cuts and Jobs Act (TCJA)—widely derided by opponents as the "GOP Tax Scam." Republican committee members couched a policy that the Center for Popular Democracy said "delivered big benefits to the rich and corporations but nearly none for working families" as "relief to help hardworking American families."
Rep. Richard Neal (D-Mass.), the committee's ranking member, pushed back during Thursday's hearing, noting that "in the last three decades, Republicans have skyrocketed the deficit with trillions in tax cuts for billionaires and big corporations, always with the same result: the top 1% benefits while nothing trickles down for workers."
Neal continued:
In 2017, Ways and Means Democrats saw the GOP corporate tax giveaway for what it was: a scam. We knew that their Tax Scam would disproportionately benefit the wealthy and well-connected. We knew that it wouldn't pay for itself. We knew that big corporations, not their workers, would feel the most benefit. Six years since the GOP Tax Scam was signed into law, we've been proven right on every count. It didn't pay for itself, it didn't increase revenue, and it didn't increase wages.
A recent study whose authors included [Joint Committee on Taxation] economists—let that sink in—found that ALL of the corporate gains from TCJA went to shareholders and high-paid executives, with absolutely nothing flowing to workers. Fifty-six percent of the tax cuts enriched shareholders, and the remaining 44% lined the pockets of execs. Zero percent went to workers. ZERO!
"There are 20 years of data showing trickle-down economics doesn't work, yet today will still be a whole lot of revisionist history and wishful thinking on the singular largest failure of fiscal policy in recent memory," Neal added. "If workers and the middle class are actually your priorities, putting them ahead of big corporations and billionaires is the only way."
Rep. Don Beyer (D-Va.)—who also sits on the committee—agreed, asserting on social media that "the Trump tax cuts were a huge 'success' if you were a billionaire or an executive at a large corporation. They made out like bandits, with a huge amount of the benefits from the GOP tax law going to the wealthiest. Now Republicans want to give the superrich even more tax cuts."
Trump is open about this. At an exclusive fundraiser at his Mar-a-Lago resort in Florida last week, he shouted out his "rich as hell" supporters, telling them, "We're gonna give you tax cuts, we're gonna pay off our debt."
That's the same debt that soared by around $8 trillion during Trump's term—largely as a result of his tax cuts. Meanwhile, U.S. billionaires have collectively gotten $2.2 trillion richer since the GOP tax cuts took effect.
With many provisions of the TCJA set to expire at the end of 2025, progressives are underscoring what's at stake in this November's elections.
"Today the American people got a preview of what's in store for them next year if the Trump Tax Scam expires under conservative leadership," Groundwork Collaborative executive director Lindsay Owens said following the House hearing. "The conservative playbook for the 2025 tax fight is coming into focus, and we can be sure it includes more giveaways for the wealthy and corporations."
Following "recent Republican chaos, we're now back to their regularly scheduled programming: Cutting taxes for millionaires," said Democratic Rep. Bill Pascrell. "They did it in 2017 and now Republicans are again pushing tax cuts for the rich."
House Republicans are poised to advance regressive taxation measures that would increase the federal deficit just weeks after they nearly blew up the global economy over ostensible concerns about the U.S. government's debt, eliciting condemnation from Democratic lawmakers and progressive advocates.
The Republican-led House Ways and Means Committee held a hearing Tuesday to mark up the so-called American Families and Jobs Act (AFJA), which packages three bills: the Tax Cuts for Working Families Act, the Small Business Jobs Act, and the Build It in America Act.
This trio of bills—dubbed the "GOP Tax Scam 2.0" by the panel's ranking member, Rep. Richard Neal (D-Mass.)—would expand Trump-era tax cuts whose benefits flow overwhelmingly to corporations and the wealthy. In the wake of demanding—and winning—sharp reductions in anti-poverty spending along with other reactionary reforms during negotiations to raise the debt ceiling, the GOP-controlled House is now moving to starve the federal government of essential revenue.
"It didn't take long for the MAGA majority's alleged debt 'concerns' to go right out the window in pursuit of more wasteful tax breaks for their billionaire donors and corporations."
"It didn't take long for the MAGA majority's alleged debt 'concerns' to go right out the window in pursuit of more wasteful tax breaks for their billionaire donors and corporations that ship jobs overseas," Liz Zelnick, director of Economic Security & Corporate Power at Accountable.US, said in a statement.
"If the recent past is prologue, the MAGA majority will try to pay for their trillion-dollar corporate tax giveaway on the backs of average Americans, including devastating cuts aimed at seniors, veterans, and the food insecure," said Zelnick. "Once again, the MAGA House majority has only corporations and the wealthy in mind."
Zelnick's sentiment was echoed by Democrats on the House Ways and Means Committee.
"This is the most ill-considered piece of legislation that I've witnessed in years in front of this committee," said Neal. "Just 10 days after our Republican colleagues were prepared to bring the nation to the brink of default... to the precipice, if not over the edge, they now come back with a tax cut."
"Apparently, the debt only matters if it's about spending, never about tax cuts," said Neal, who lamented "$10 trillion of tax cuts" enacted in 2001, 2003, and 2017—years when Republicans held both chambers of Congress and the White House.
\u201cRepublican tax cuts are a masterclass in failed promises, lip service to small businesses and working families, only for them to end up with pennies. \n\nWATCH Ranking Member @RepRichardNeal's opening statement at the markup of the #GOPTaxScam 2.0 \u2935\ufe0f\u201d— Ways and Means Democrats (@Ways and Means Democrats) 1686668744
Rep. Bill Pascrell (D-N.J.) derided what he called the GOP's "tax scam 2.0" as one of the worst sequels in history.
"After months of some of you actually liking the idea of keeping other people hostage, some of you are back to the single issue that unites your party: Tax cuts for the well-off," Pascrell said in a message to Republicans on the panel. "It's far past time to retire" the argument that "tax cuts 'pay for themselves.' They just don't. You can't prove it."
\u201cAmid recent republican chaos we\u2019re now back to their regularly scheduled programming: cutting taxes for millionaires. They did it in 2017 and now republicans are again pushing tax cuts for the rich. The gop tax scam 2.0 is a worse sequel than Caddyshack 2!\u201d— Bill Pascrell, Jr. \ud83c\uddfa\ud83c\uddf8\ud83c\uddfa\ud83c\udde6 (@Bill Pascrell, Jr. \ud83c\uddfa\ud83c\uddf8\ud83c\uddfa\ud83c\udde6) 1686674915
Among other things, the AFJA would expand corporate and business tax breaks enacted in the Tax Cuts and Jobs Act (TCJA) approved by congressional Republicans and signed into law by then-President Donald Trump in 2017.
If the new proposal were to pass, the richest 1% of U.S. households would receive $28.4 billion in tax cuts (an average of $16,560) next year, compared with $1.4 billion for the poorest 20% ($40, on average), according to Steve Wamhoff, federal policy director at the Institute on Taxation and Economic Policy. Because foreign investors own a substantial share of stock in U.S. corporations, they would also receive $23.8 billion next year under the legislation.
House Ways and Means Chair Jason Smith (R-Mo.) has claimed that the cost of the tax cuts would be offset through a repeal of the Inflation Reduction Act's clean energy tax credits. But as Wamhoff explained in an analysis published earlier this week, deliberately hindering the nation's renewable energy transition would impose additional costs "in the form of greater climate damage."
\u201cThis is the classic tradeoff for Republicans\u2014slash programs for working people to fund MORE tax breaks for big corporations and their rich owners.\n\nShameful.\u201d— Americans For Tax Fairness (@Americans For Tax Fairness) 1686663793
Moreover, "the true costs are hidden by budget gimmicks," Wamhoff noted. "The most important budget gimmick is that the legislation enacts the biggest tax cuts for only two years even though its proponents plan to extend them in the future, making them, in effect, permanent."
According to the Committee for a Responsible Federal Budget: "The bill would cost $80 billion over a decade with interest ($19 billion before interest), including $320 billion through the end of fiscal year (FY) 2025. The smaller 10-year cost is driven by several factors but mainly by the fact that most of the bill's tax cuts expire at the end of 2025. We estimate that the plan would cost over $1.1 trillion ($950 billion without interest) through 2033 if these temporary tax cuts and extensions were made permanent."
The benefits of the 2017 TCJA "never trickled down," Americans for Tax Fairness tweeted. "Instead, the rich got richer and corporations made bigger profits. We should be repealing the Trump tax cuts, not making them permanent."
In a blog post published Tuesday, Chuck Marr and Samantha Jacoby of the Center on Budget and Policy Priorities also urged lawmakers to "reject this bill and pursue tax policy that works better for the country as a whole—not just wealthy investors and high-income households."