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Congressional Analysis: GOP Tax Gifts to Rich Would Explode Deficit They Always Complain About
"This bill gives enormous additional tax cuts to wealthy people and corporations, spikes the deficit, and strips healthcare from millions of Americans," said one critic.
May 13, 2025
While Republicans on Capitol Hill—including the leaders of both chambers of Congress—have long argued for reducing the national debt, the GOP is now pushing a tax bill that would not only fund giveaways to the rich by gutting programs that serve the working class, but also add $3.8 trillion to the U.S. deficit.
The national debt is currently $36.2 trillion. The Joint Committee on Taxation (JCT) on Tuesday released an analysis showing that the Republican bill would cost $3.8 trillion through 2034, or 1.1% of gross domestic product.
The JCT document notes that some estimates—such as the impact of modifications to de minimis entry privilege for commercial shipments and to Medicare, including limiting coverage—will be provided by the Congressional Budget Office.
The JCT's release coincides with a key meeting in the U.S. House of Representatives. As Politicodetailed:
The newly revised estimate released Tuesday afternoon is up slightly from the $3.7 trillion price tag budget forecasters had previously put on the plan, and it comes as the tax-writing Ways and Means Committee began formally debating the package. Additional changes are possible there, and also later, when Republicans are preparing to take the legislation to the House floor."
[...]
Under the House GOP's budget, the size of their tax cuts is contingent on lawmakers simultaneously cutting spending, and Republicans are hoping to match $4 trillion in tax cuts with $1.5 trillion in spending reductions.
Ahead of the markup, Amy Hanauer, executive director of the Institute on Taxation and Economic Policy (ITEP), said in a statement that "this bill gives enormous additional tax cuts to wealthy people and corporations, spikes the deficit, and strips healthcare from millions of Americans."
"Reckless tax cuts for the top and new corporate loopholes appear to be the big features of this bill, and they're paid for by cutting our healthcare and making American communities more vulnerable to floods, fires, and storms," she stressed. "The revenue raisers—which don't stop this from being extremely expensive—seem to be about picking winners and losers, rather than passing rational, consistent policies."
ITEP's statement also lists the bill's major provisions, including making changes to personal income tax rates and brackets from the GOP's 2017 Tax Cuts and Jobs Act permanent; making permanent and increasing the "pass-through" business deduction; increasing the estate tax exemption; and temporarily increasing the child tax credit, but excluding millions of children.
Americans for Tax Fairness (ATF) similarly listed provisions on social media Tuesday—and highlighted their impacts.
What's the result of maintaining the top income tax rate cut? "25% of the benefits go straight to the top 1%," the group noted. "The average top 1% household makes $2.5 million a year. They would get a $55k tax break. The top 400 taxpayers would get an $800 MILLION tax cut each year."
"Since they're deficit-financing most of this, every penny of the 'savings' DOGE has found... is paying for tax breaks for the wealthy."
What about widening the "pass-through" loophole? "Half of this break goes to millionaires," ATF continued. "The top 0.1% would get a $107,000 tax cut. The top 1% would get an average $22,500 tax cut. Working families would get around $40 to $50. White households get 90% of the benefit."
The group pointed out that "the package doubles how much rich heirs can inherit without paying taxes. That means a couple could pass on $30 MILLION without paying a penny in taxes. This tax break ONLY benefits the richest 0.2% of households. Weakening the estate tax is projected to cost $200 BILLION."
"It also gives corporations $642 BILLION in tax breaks," ATF said. "Most of the benefit of corporate tax cuts goes to CEOs, rich shareholders, and foreign investors. One provision gives Apple, Amazon, Google, Meta, and Tesla alone a $75 BILLION tax cut. Another encourages offshoring."
ATF also tied the proposal to supposed cost-cutting efforts by President Donald Trump's Department of Government Efficiency (DOGE) and its de facto leader, Elon Musk—who also happens to be the CEO of Tesla and the richest man on Earth.
"The part they won't say out loud?" the group wrote. "Since they're deficit-financing most of this, every penny of the 'savings' DOGE has found by cutting the [the Department of Veterans Affairs], Department of Education, and Social Security Administration is paying for tax breaks for the wealthy. Really."
Although Republicans control both chambers and the White House, their majorities are slim, meaning absences and disagreements over issues like increasing the deficit or cuts that will anger constituents in swing districts could slow or even impede their ability to send "one big, beautiful bill" to Trump's desk.
As Common Dreamsreported earlier Tuesday, U.S. Sen. Bernie Sanders (I-Vt.) is deploying organizers to mobilize opposition against the GOP's emerging reconciliation package, focusing on districts he has visited as part of his Fighting Oligarchy Tour.
Materials that organizers plan to distribute encourage constituents to call their representatives and request they vote no "on a bill to cut Medicaid, nutrition assistance, and education to pay for hundreds of billions of dollars in more tax breaks for billionaires."
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Trump Admin Will Garnish Struggling Borrowers' Wages as Student Loan Payments Resume
"This is just cruel and doesn't have to happen," said the Debt Collective.
Apr 21, 2025
The Trump administration on Monday announced that it will resume involuntary collection measures against defaulted federal student loan recipients, including garnishing wages, tax refunds, and Social Security benefits and "other actions to help borrowers get back into repayment," as the U.S. Department of Education euphemistically said.
"Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education," DOE said in a statement notifying the public that collections will resume May 5. "This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default."
The DOE said the U.S. Treasury Offset Program will administer borrower garnishments, which are expected to resume this summer.
DOE continued:
While Congress mandated that student and parent borrowers begin to repay their student loans in October 2023, the Biden-Harris administration refused to lift the collections pause and kept borrowers in a confusing limbo. The previous administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided "on-ramps" and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," billionaire U.S. Education Secretary Linda McMahon said on Monday.
The repayment resumption is part of the Trump administration's three-pronged, $1.6 trillion overhaul of the federal student loan system. In addition to moving to collect on defaulted loans, the administration is looking to end former President Joe Biden's Saving on a Valuable Education (SAVE) plan, an income-driven repayment program currently blocked by a federal appellate court. President Donald Trump also signed an executive order narrowing eligibility for the Public Service Loan Forgiveness program.
Last month, the American Federation of Teachers led a lawsuit against the Trump administration after the DOE cut off access to income-driven repayment plan applications and secretly ordered student loan services to stop accepting and processing such applications.
The government has not collected on defaulted student loans since March 2020, when the first Trump administration paused repayments due to the burgeoning Covid-19 pandemic. The reprieve, which was subsequently extended several times, was set to end in September 2023. Efforts by the Biden administration to forgive some or all loan debt for more than 45 million student borrowers were thwarted by the right-wing U.S. Supreme Court in 2023.
"The Biden administration misled borrowers: The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear," said McMahon. "Hundreds of billions have already been transferred to taxpayers."
"Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation's economic outlook," she added.
As McMahon and the Trump administration work toward ending the DOE—a key goal of Project 2025, the Heritage Foundation-led plan to eviscerate the federal government—Trump has ordered the administration of federal student loans to be transferred to the Small Business Administration (SBA), which was headed by McMahon during Trump's first term.
Approximately 5.6 million student borrowers were in default at the end of 2024. The DOE warns that "there could be almost 10 million borrowers in default in a few months" after repayments resume. That's roughly 25% of the current student loan portfolio. Failure to make timely student loan repayments results in lower credit scores for borrowers, who in turn generate less economic activity—a domino effect with implications for the entire slowing U.S. economy.
"They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
"Many of the households required to resume paying on their student loans are also struggling with credit card debt at near-record interest rates and high-rate mortgages they thought they would be able to refinance into a lower rate, but haven't," explained Moody's Analytics chief economist Mark Zandi in a Monday interview with The New York Times.
Some critics slammed the Trump administration for resuming student loan repayments amid an affordability and housing crisis during which a record number of people are unhoused.
"Parents delaying retirement. Grads postponing families. This isn't 45 million separate problems, it's one national crisis," the Student Debt Crisis Center (SDCC) said on social media. "They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"
SDCC executive director Mike Pierce said that "federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt collection machine."
"This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country," Pierce added.
Tuition-free college would help make America great. Those who need loans to attend college come from working class families, the elites don’t need loans. 40% of student debt holders don’t hold a degree. This will hurt the working class.
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— Nina Turner (@ninaturner.bsky.social) April 21, 2025 at 2:07 PM
Others offered solutions enjoyed by people in other countries, including simply not collecting the debt and making colleges and universities tuition-free—even if their chances of implementation under what many leftists call U.S. "late-stage capitalism" are next to nil.
"If the Trump/Musk administration really wanted 'government efficiency,' then they wouldn't be collecting on debts people cannot and will not pay,"
said the Debt Collective, a debtors' union, referring to Elon Musk, who heads the Department of Government Efficiency. "They would just cancel it and boost the economy."
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Argentina General Strike Demands End to Milei's 'Chainsaw' Austerity Policies
"The Milei government has picked a fight with workers and pensioners, and now they will feel the full force of organized labor," said one union leader.
Apr 10, 2025
Increasingly fed up with economic policies under which poverty and inflation have soared while vital social services, wages, and the peso have taken huge hits, disaffected Argentinians took to the streets of cities across the South American nation Wednesday for the third general strike of right-wing President Javier Milei's tumultuous 16-month presidency.
Led by the General Confederation of Labor (CGT)—an umbrella group of Argentinian unions—the "paro general," or general stoppage, drew workers, the unemployed, pensioners, educators, students, and others affected by Milei's severe austerity measures and his administration's plans for more deep cuts. Demonstrations continued throughout Thursday.
"In the face of intolerable social inequality and a government that ignores calls for better wages and a dignified standard of living for all, the workers are going on strike," CGT explained ahead of the action.
Airlines canceled hundreds of flights as air traffic controllers and other airport workers joined the strike; many schools, banks, and other offices shut down; and ports, some public transport, and other services ground to a halt.
"The only thing the administration has brought is a wave of layoffs across state agencies, higher poverty rates, and international debts, which are the biggest scam in Argentina's history," the Association of Airline Pilots (APA) said.
Rodolfo Aguiar, secretary general of the Association of State Workers (ATE), said Wednesday that "after this strike, they have to turn off the chainsaw; there's no room for more cuts," a reference to both Milei's ubiquitous campaign prop and his gutting of public programs upon which millions of Argentinians rely.
"Right now, the crisis Argentina is facing is worsening," Aguiar added, warning about government talks with the International Monetary Fund. "The rise in the dollar will quickly translate into food prices, and the new deal with the IMF is nothing more than more debt and more austerity measures."
Milei's government is nearing agreement on a $20 million IMF bailout, a deeply unpopular proposition in a country left reeling by the U.S.-dominated institution's missteps and intentional policies that benefit foreign investors while causing acute suffering for millions of everyday Argentinians. Argentina already owes $44 billion to the IMF.
"We already have experience as Argentinians that no agreement has been beneficial for the people," retiree and striker Rezo Mossetti told Agence France-Press in Buenos Aires Thursday, lamenting that his country keeps getting into "worse and worse" debt.
CGT decided to launch the general strike during a March 20 meeting that followed a pensioner-led March 12 protest outside the National Congress in Buenos Aires. After fringe elements including rowdy soccer fans known as "barrabravas" joined the protests and committed acts of violence and vandalism, police responded by attacking demonstrators with "less-lethal" weapons including water cannons and tear gas. A gas canister struck freelance photojournalist Pablo Grillo in the head, causing a severe brain injury that required urgent surgery.
This, after Argentinian Security Minister Patricia Bullrich invoked controversial measure empowering more aggressive use of force against protesters and rescinding a ban on police use of tear gas canisters. The Security Ministry also filed a criminal complaint dubiously accusing organizers of the March 12 protest of sedition.
Milei and his supporters have portrayed the general strike as a treasonous assault on the fragile Argentinian economy and those taking part in the day of action as lazy and jobless.
When Clarín, the country's largest newspaper, cited a study by the Argentine University of Enterprise claiming that the general strike would cost the national economy around $185 million per day, University of Buenos Aires professor Sergio Wischñevsky retorted: "Very revealing. It means that's the magnitude of the wealth workers produce every day. It's the best argument to stop ignoring workers."
As he has done with past protests against his rule, Milei has also framed the general strike as "an attack against the republic" and repeated his threat that police would "crack down" on demonstrators.
Orwellian use of state infrastructure by Milei's "anarcho-capitalist" gvmnt. in Argentina. As the 36 hr. general strike begins, signs & loudspeakers at train stations across Buenos Aires read: "Attack against the republic! The syndicalist caste punishes millions of Argentines who want to work."
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— Batallon Bakunin ( @batallonbakunin.bsky.social) April 10, 2025 at 4:11 AM
General strikers largely shrugged off the threats of police violence and state repression.
"The right to strike is a worker right and I think there has to be more strikes because the situation with this government is unsustainable," Hugo Velazuez, a 62-year-old worker striking in Buenos Aires, toldReuters.
While the Argentinian mainstream media's coverage of the general strike was largely muted, images posted by independent progressive media showed parts of central Buenos Aires appearing practically empty.
Workers around the world showed solidarity with striking Argentinians.
"The Milei government has picked a fight with workers and pensioners, and now they will feel the full force of organized labor," said Paddy Crumlin, president of the London-based International Transport Workers' Federation (ITF), which boasts nearly 20 million members in 677 unions in 149 nations. "The international trade union movement stands ready to fight back with our Argentine comrades. We will not rest until these attacks on workers' rights are defeated."
ITF noted that various sectors of Argentina's transportation sector "are under direct threat of privatization," including the national commercial airline, Aerolíneas Argentinas, the National Highway Board, and the Argentinian Merchant Marine.
Milei—a self-described anarcho-capitalist who was elected in November 2023 on a wave of populist revulsion at the status quo—campaigned on a platform of repairing the moribund economy, tackling inflation, reducing poverty, and dismantling the state. He made wild promises including dollarizing Argentina's economy and abolishing the central bank.
However, the realities of leading South America's second-largest economy have forced Milei's administration to abandon or significantly curtail key agenda items, leading to accusations of neoliberalism and betrayal from the right and hypocrisy and rank incompetence from the left. According to most polling, Milei's approval rating has fallen from net positive to negative in just a few months.
Particularly galling to many left-of-center Argentinians is Milei's cozying up to far-right figures around the world, especially U.S. President Donald Trump.
Andrew Kennis, a Rutgers University media studies professor specializing in Latin America, noted similarities between the protests in Argentina and anti-Trump demonstrations in the United States.
"It's no coincidence that 5.2 million people were in the streets in all 50 states just this past Saturday and that the U.S. is now catching up with the mass resistance that's long been going on in Argentina," Kennis told Common Dreams Thursday.
Kennis—who this week published a deep dive on Milei's "destructive chainsaw theory" in Common Dreams—added that in the cases of both Milei and Trump, "there was no real honeymoon period, as there almost always is" for most new presidencies.
"In both countries, people were in the streets pretty damned fast and furiously," he added.
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