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tax cuts for the rich
House GOP Advances Budget After Blocking Amendments to Protect Food Benefits, Medicaid
"Instead of choosing to protect the American people, they chose to protect billionaires and corporations," said the top Democrat on the House Budget Committee.
Feb 14, 2025
House Republicans advanced their budget plan out of committee Thursday night after a 12-hour markup session during which they rejected dozens of Democratic amendments, including proposed changes that would have protected Medicaid and federal nutrition benefits from the deep cuts the GOP hopes to impose to help finance trillions of dollars in tax breaks for the richest Americans.
The House Budget Committee advanced the Republican resolution, unveiled earlier this week, in a 21-16 vote along party lines. Prior to the vote, GOP members agreed to adopt an amendment offered by Rep. Lloyd Smucker (R-Pa.) that, according toPolitico, effectively caps "the cost of the tax cuts at $4 trillion, with a dollar-for-dollar increase in that ceiling if Republicans cut more spending, up to a total of $2 trillion in cuts."
Democrats on the panel offered more than 30 amendments to the budget resolution, all of which Republicans rejected.
"Each of our amendments was a direct effort to shield the American people from the reckless cuts embedded in this proposal, cuts that will hurt the most vulnerable while giving trillions of dollars of handouts to the ultra-rich," Rep. Brendan Boyle (D-Pa.), the top Democrat on the House Budget Committee, said in his closing remarks at Thursday's hearing. "We fought to protect Medicaid and Medicare, ensuring that seniors, low-income families, children, and people with disabilities don't see their healthcare stripped away."
"We proposed amendments to maintain funding for public education, ensuring that schools remain adequately resourced and that teachers don't bear the burden of budget shortfalls," Boyle continued. "And we stood up for veterans who risked their lives for this country and deserve more than empty rhetoric. They deserve fully funded healthcare, food assistance, and the benefits they earned through their service. Yet, despite the clear benefits of these proposals, Republicans oppose all of them."
"Instead of choosing to protect the American people," he added, "they chose to protect billionaires and corporations."
"This isn't government of, by, and for the people; it's government of, by, and for billionaires."
The Republican budget blueprint calls for more than a trillion dollars in cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which provide healthcare and food aid to tens of millions of low-income Americans.
"These aren't just numbers," Sharon Parrott, president of the Center on Budget and Policy Priorities, stressed in response to the House GOP resolution. "The loss of Medicaid means, for example, a parent can't get cancer treatment, and a young adult can't get insulin to control their diabetes. Cuts to food assistance mean a parent skips meals so their children can eat or an older person who lost their job has no way to buy groceries."
In addition to advancing the GOP's far-right ideological project, such cuts would partly offset the costs of Republicans' proposed tax breaks—which would disproportionately benefit the wealthiest people in the country, including the billionaires in President Donald Trump's Cabinet.
"Republicans are cutting Medicaid and SNAP to pay for tax breaks for the richest 1% of Americans," the progressive advocacy group Americans for Tax Fairness wrote in a social media post on Thursday. "They are literally taking $1.1 TRILLION away from you, and giving it to the wealthiest people in the country."
Thursday's vote marks a first step toward passage of a sprawling, filibuster-proof budget reconciliation package that will include a slew of Republican priorities.
But the House GOP must resolve its differences with Senate Republicans, who are pushing for two bills instead of one. The Senate plan, which Republicans advanced out of committee earlier this week, also calls for major cuts to Medicaid and SNAP.
"This Republican budget opens the door to massive cuts for families," Sen. Jeff Merkley (D-Ore.), ranking member of the Senate Budget Committee, said Thursday. "Democrats on the committee offered amendment after amendment to protect healthcare, housing, and education—all of the foundations working families need to thrive—and Republicans blocked every single one of them, all to later divert those cuts into massive tax breaks for the richest Americans."
"This is the Great Betrayal," Merkley added. "Trump campaigned on protecting families, but President Trump and Senate Republicans are all about protecting their billionaire friends. This isn't government of, by, and for the people; it's government of, by, and for billionaires."
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'There Will Be Pain': How Trump Tax Giveaways to the Rich Hurt Small Businesses and Working People
"Congress has a choice—they can either extend a failed policy or create tax reform that actually works for Main Street and communities."
Feb 13, 2025
As the Trump administration and congressional Republicans pursue trillions of dollars in new tax giveaways for wealthy individuals and corporations, economists and pollsters this week are warning about how devastating the GOP's plan would be for small businesses and working families.
There Will Be Pain is the matter-of-fact title of a Thursday report from Josh Bivens, chief economist at the Economic Policy Institute (EPI). It details how extending the expiring provisions from the tax law that Republican lawmakers passed and Trump signed in 2017 "will have painful trade-offs for the U.S. economy and most Americans."
"The U.S. 'fiscal gap'—how much taxes need to be raised or spending cut to keep public debt stable as a share of gross domestic product—was entirely created by the Republican tax cuts of 2001, 2003, and 2017," Bivens wrote. "The 'tax gap'—the amount of taxes owed but not paid each year—is currently larger than the overall fiscal gap. It is driven by the richest U.S. households and businesses cheating the law and underpaying taxes."
Extending the Tax Cuts and Jobs Act (TCJA) provisions, currently set to expire at the end of this year, "would increase the fiscal gap by nearly 50%, from 2.1% to 3.3%," Bivens explained. "No matter how these tax cuts are financed, the result will hurt most working families, especially low-income households."
"Cuts to key social insurance and income support programs like Supplemental Nutrition Assistance Program (SNAP, commonly called food stamps) or Medicaid would do substantial damage to the nation's future workforce by depriving millions of children today of key health and developmental supports," he warned.
"Further, cuts of this size, if phased in quickly, would at minimum require the Federal Reserve to aggressively cut interest rates to avoid a recession," Bivens continued, "and could quite easily overwhelm any attempt by the Fed to buffer the economy from their effect, leading to recession and job losses."
The Republican playbook offers normal people crumbs and gives the cake to the rich. Extending Trump's 2017 tax cuts will give the bottom 60% $1.10 per day - but will give the top 1% $165 per day. Paying for this generosity to the top will cost working families dearly.
— Economic Policy Institute ( @epi.org) February 13, 2025 at 12:21 PM
Bivens argued that "expanding public investment and raising federal revenue via taxes that mostly come from high-income households is the most optimal way to close fiscal gap, boost economic productivity, and produce a fairer economy."
"If TCJA expansions for the rich are inevitable, this leaves three options: running deficits, increasing regressive taxes (in the form of tariffs, for example), or spending cuts," he added. "While none of these options is ideal, running deficits has the potential to be less harmful for American families, whereas regressive taxation and spending cuts will categorically cause the most harm."
The think tank published Bivens' report as a national coalition, Small Business for America's Future, released its findings from a survey of 863 small business owners' sentiments on the tax code, conducted from mid-December to late January.
The survey shows that just 3% of small business owners hired more workers as a result of the TCJA, 6% increased investments or employee wages, and 9% were able to pay down debts. Meanwhile, 43% reported no positive impact from the 2017 law.
The coalition found that small business owners are critical of the U.S. tax code in general and the TCJA specifically. Of those surveyed, 91% of said the tax code "favors large corporations over small businesses" and 76% report that wealthy individuals and big companies benefited most from the 2017 law, which critics have long called the "GOP Tax Scam."
The TCJA's small business pass-through deduction lets owners exclude up to 20% of their qualified business income from federal income tax. However, critics have called it complex and the survey shows that 39% of owners weren't sure if they claim the benefit.
The survey also highlights solutions that are popular with owners, such as exempting the first $25,000 of profit from federal income tax, creating a simplified standard deduction, making the tax code less complicated, and modernizing the Internal Revenue Service. Additionally, 61% of respondents support raising the corporate tax rate to pay for new small business tax benefits.
"By slashing the corporate tax rate permanently from 35% to 21%, while offering most small business owners only a temporary and complex 20% tax deduction, the TCJA created a two-tier tax system that overwhelmingly favored large corporations," said Walt Rowen, co-chair of Small Business for America's Future and president of the Susquehanna Glass Company in Pennsylvania.
"This isn't just hurting business owners—it's failing workers, families and local economies in every community across the country," Rowen added. "Now, Congress has a choice—they can either extend a failed policy or create tax reform that actually works for Main Street and communities."
The GOP controls the White House and both chambers of Congress, but those surveyed by the coalition were divided in terms of political parties: 23% said they didn't know or preferred not to say while 29% identified as Republicans, 25% as Democrats, and 19% as Independents. More than three-quarters were age 55 or older, 56% were white, and just over half were men. A quarter of owners listed themselves as the only employee, and nearly half had just 1-10 workers.
"Small businesses create jobs, drive innovation, and provide essential services in every community across America. But this law has done nothing to help them fulfill their potential," said Anne Zimmerman, a coalition co-chair and certified public accountant in Ohio. "When nearly 40% of small business owners can't even determine if they received the law's main small business tax deduction, while large corporations got an immediate and permanent tax cut, something is fundamentally wrong with our approach."
The small business survey and EPI's report followed polling released Tuesday by Data for Progress, Groundwork Collaborative, and the Student Borrower Protection Center that shows a majority of Americans believe not only that the rich pay too little in taxes but also that lawmakers shouldn't slash popular programs to give them more tax cuts.
"Americans might not always see eye to eye, but one thing's clear: Nearly every voter—across party lines—wants to protect Medicare, Medicaid, Social Security, and SNAP," said Groundwork Collaborative. "Meanwhile, the GOP is pushing to gut them for even more tax breaks for the wealthy."
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As GOP Pushes Tax Giveaways for the Rich, Sanders Launches 'National Tour to Fight Oligarchy'
"Today, the oligarchs and the billionaire class are getting richer and richer and have more and more power," the senator said. "This country belongs to all of us, not just the few. We must fight back."
Feb 13, 2025
As Republicans in Congress and the Trump administration scour the federal public services infrastructure looking for cuts to healthcare, food assistance, and consumer protections that could offset the $4.6 trillion deficit hole the GOP is intent on creating by extending tax cuts for the rich, U.S. Sen. Bernie Sanders is preparing for a "National Tour to Fight Oligarchy."
With Americans inundated with news about Trump's billionaire megadonor, Tesla CEO Elon Musk, ransacking federal agencies through the Department of Government Efficiency—and little to no news about President Donald Trump's supposed plans to reduce the cost of living—Sanders (I-Vt.) is intent on speaking directly to voters during his nationwide town hall tour, titled, "Fighting Oligarchy: Where We Go From Here."
The senator, who garnered support from working-class Americans and young voters during his Democratic presidential runs in 2016 and 2020, will kick off the tour with stops in Omaha, Nebraska on February 21 and Iowa City, Iowa on February 22.
The first stop lies in the House district represented by Rep. Don Bacon (R-Neb.), who this week expressed some hesitation about voting for a GOP budget proposal that could include steep spending cuts, including potentially to Medicaid. Bacon's district was carried by former President Joe Biden in 2020 and former Vice President Kamala Harris in 2024.
A Sanders aide toldPolitico that the senator aims to influence the Republicans' fight over the budget, which has reportedly made some GOP members of the House, where the party holds a slim majority, uneasy about backlash from voters in upcoming elections in 2026 and 2028.
As Common Dreamsreported on Tuesday, a recent poll by progressive think tank Data for Progress showed voters from across the political spectrum don't want lawmakers to make cuts to federal student loans, Medicare, Medicaid, the Supplemental Nutrition Assistance Program, or renewable energy programs—all of which the GOP has eyed as it aims to do the bidding of wealthy donors and extend the 2017 tax cuts which primarily benefited the country's top earners.
In a statement, Sanders on Wednesday said his town hall tour will help Americans make sense of how they "can fight back against President Trump and Elon Musk," who are "quickly moving the country toward authoritarianism, oligarchy, and kleptocracy."
"Today, the oligarchs and the billionaire class are getting richer and richer and have more and more power," Sanders said. "Meanwhile, 60% of Americans live paycheck to paycheck and most of our people are struggling to pay for healthcare, childcare, and housing. This country belongs to all of us, not just the few. We must fight back."
Allies of the progressive senator said his direct engagement with voters is also likely a response to Democratic leaders' approach to the first weeks of Trump's second term in office. While Democratic lawmakers have spoken out against Musk's attempted takeover of federal agencies and some have pushed for strategic opposition to the Trump agenda, leaders in the party complained in a closed-door meeting this week about progressive advocacy groups that have urged the Democrats to act as a genuine, cohesive opposition party.
In a press conference this week, House Minority Leader Hakeem Jeffries (D-N.Y.) appeared perplexed by the idea that Democrats should try to counter Trump's agenda, saying Republicans control both chambers of Congress and the White House, and Senate Minority Leader Chuck Schumer (D-N.Y.) said the party is "not going to go after every single issue" as it fights the president.
Last week, Jeffries garnered scorn for meeting with more than 150 donors in Silicon Valley in an effort to "mend fences" as numerous high-profile tech executives have aligned themselves with Trump.
The House leader also appeared unmoved by "The Weekly Show" host Jon Stewart's suggestion in an interview this week that the Democrats have "gotten away from New Deal values" and should focus on pushing for policies that help the working class rather than simply improving "messaging."
Anna Bahr, a spokesperson for Sanders, told Politico that "it may be hard to believe, but at least one person in Washington is more interested in talking with working-class people than running for office or fundraising."
"Sen. Sanders is doing what he has always done: meeting people all over the country to discuss our failed healthcare system, housing crisis, and the wealth and income inequality that is only intensifying," said Bahr.
Rep. Ro Khanna (D-Calif.), who co-chaired the senator's 2020 presidential campaign, told the outlet that the Democratic Party needs Sanders "in strategic states making the case to define the future of our party for the next 20 years."
"Sen. Sanders has been a prophet for where the Democratic Party needs to go in standing up for working-class Americans," said Khanna, "and opposing the unholy alliance of wealth and power."
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