Bill Gross To Investors: Don’t Get Used To The Trump Rally
The election of Donald Trump, along with continued Republican majorities in the House and Senate, will likely result in major cuts in federal programs that benefit older adults and younger people with disabilities.
Some of the programs that could be targeted: Medicaid, important reforms in the way health care is delivered through Medicare, and services funded through the Older Americans Act such as Meals on Wheels, adult day, information assistance. And while Trump vowed throughout his campaign to leave Social Security and Medicare untouched, congressional Republicans have targeted both programs and it is not clear whether the new president would resist their efforts to cut benefits.
It is important to note that Trump carefully avoided identifying specific spending reductions throughout the campaign. He did back a House GOP plan to cap federal spending for Medicaid, a program that benefits very poor and very sick older adults and people with disabilities, as well as low-income mothers and children. He promised to repeal the Affordable Care Act (ACA), called for unspecified cost savings in the Medicare drug program, and generally vowed to eliminate government waste. And he said he backs an old (never-enacted) congressional proposal to cut government spending by one percent a year, except for Medicare, Social Security, Medicaid, and defense.
President Trump’s First 100 Days:
We’ll get to that last proposal, called the penny plan, in a minute. But first one more bit of context to help explain why a Trump presidency is likely to lead to big spending cuts for programs that benefit seniors and younger people with disabilities.
Trump has proposed a $6.2 trillion tax cut, according to my colleagues at the Tax Policy Center. That’s bigger than any tax cut in modern US history, expect for Ronald Reagan’s…