Thread: Trump budget plan will not cut Social Security, Medicare: Mnuchin

Trump budget plan will not cut Social Security, Medicare: Mnuchin

Sun Feb 26, 2017 | 12:10pm EST
By David Lawder | WASHINGTON

U.S. President Donald Trump's first budget proposal will spare big social welfare programs such as Social Security and Medicare from any cuts, Treasury Secretary Steven Mnuchin said in an interview broadcast on Sunday.

Mnuchin said Trump would use his first "State of the Union" policy speech on Tuesday night to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make American companies more globally competitive with lower rates and changes to encourage U.S. manufacturing.

Speaking on Fox News Channel's "Sunday Morning Futures" program, Mnuchin, who has acknowledged that tax reform is his top policy priority, said the budget plan would not seek cuts to federal benefits programs known as "entitlements."

"We are not touching those now. So don't expect to see that as part of this budget, OK," Mnuchin said of the programs, according to a transcript provided by Fox. "We are very focused on other aspects and that's what's very important to us. And that's the president's priority."

Mnuchin said Trump "will be touching on tax reform" as part of his first State of the Union speech to Congress.

The plan will reduce the number of tax brackets for individuals and offer a "middle income tax cut," Mnuchin said. On the business side, Trump wants to "create a level playing field for U.S. companies to be able to compete in the world."

Mnuchin said Trump was looking at a "reciprocal tax" that would help create more parity with other countries. Trump administration officials have complained that many countries charge value-added taxes on imports while exempting exports from taxation. The United States mainly taxes corporate income.

But Mnuchin again said he was only studying a House Republican border tax adjustment plan that would levy a 20 percent tax on imports to encourage more U.S.-based production and exports. That plan aims to raise more than $1 trillion in revenue over a decade to offset lower tax rates for businesses.

"So let me just say this is something we are studying very carefully," Mnuchin said. "There are certain aspects that the president likes about the concept of a border-adjusted tax, there are certain aspects that he's very concerned about."

He added that the Trump administration would work with the House of Representatives and Senate to craft "a combined plan that takes the best of all of this when we bring it forward."
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In a comment suggesting that Trump's budget and tax plan may use aggressive revenue assumptions, Mnuchin said the administration "fundamentally believes in dynamic scoring," a budget calculation method that assumes that a lower tax burden boosts revenues by encouraging economic activity.

The Congressional Budget Office has previously used mainly "static" scoring methods that assume very conservative economic effects of budget and taxes.

"If we make business taxes more competitive, people will do more business here and we'll get more revenues," Mnuchin said. "So although there may be an absolute lower rate, that doesn't necessarily mean it's a corresponding drop in revenues."

(Reporting by David Lawder; Editing by Jeffrey Benkoe and Alan Crosby)

http://www.reuters.com/article/us-us...-idUSKBN1650LL

That's very good news. I totally agree with Trump that we shouldn't touch Social Security and Medicare. No cuts, no increase in age limit, nothing. Leave it alone. It's the one agency that actually performs the way it's supposed to. If funds run low, raise the payroll taxes that haven't been raised in 26 years for Social Security despite the "boomers" coming on or Medicare in 31 years, despite the "boomers" signing on. The failure to raise this tax when the system may need it is derelict. If you didn't raise them because you didn't need the revenue, then obviously you're lying when you claim "Social Security is going broke." You can't have it both ways saying you don't need more revenue during a rush of new retirees because of the boomers, then claim it's going broke because of them.

Thank You Mr. President. This will put the minds of our Senior Citizens on Social Security at peace as they should be in their golden years.

As to the new tax plan changes, strongly encourage looking at the FairTax which levels the playing field for our producers against unfair foreign competition imports and gives American Workers a tremendous disposable income advantage over illegal aliens making it difficult to impossible for them to undercut American Workers and depress wages in the US.

Cuts to social security and medicare were never an issue. President Trump had promised repeatedly during his campaign that there would be no cuts to those two programs.

Congress is the one threatening to mess with Social Security, people like Paul Ryan, not Trump. Republicans in Congress better stay away from even talking about cuts or negative changes to Social Security and Medicare. Trump wants to start negotiating with the drug companies to reduce the cost of senior's drugs and I have no problem with that, but no changes at all to beneficiaries. So Seniors need to relax and know that their Social Security retirements and health care benefits are safe and secure, as they should be. They "made a deal a long time ago." -- Donald Trump.

Originally Posted by Judy

Congress is the one threatening to mess with Social Security, people like Paul Ryan, not Trump. Republicans in Congress better stay away from even talking about cuts or negative changes to Social Security and Medicare. Trump wants to start negotiating with the drug companies to reduce the cost of senior's drugs and I have no problem with that, but no changes at all to beneficiaries. So Seniors need to relax and know that their Social Security retirements and health care benefits are safe and secure, as they should be. They "made a deal a long time ago." -- Donald Trump.

Congress would not have the votes to override a Trump veto.

Doesn't matter, they need to stop talking about cutting, privatizing or changing Social Security and Medicare and reassure the Seniors of our nation so they don't worry about their futures.

Originally Posted by Judy

Doesn't matter, they need to stop talking about cutting, privatizing or changing Social Security and Medicare and reassure the Seniors of our nation so they don't worry about their futures.

Sure it matters.