Budget

Issues ››› Budget
  • Trump’s “infrastructure week” scheme was another media fake out, not a serious policy proposal 

    Blog ››› ››› CRAIG HARRINGTON & ALEX MORASH


    Sarah Wasko / Media Matters

    The White House’s rollout of its so-called “infrastructure week” agenda demonstrated once again that President Donald Trump and his staff are interested in policy discussions only insofar as they can generate short-term media narratives. The infrastructure scheme that the Trump team is pushing falls far short of the substantive approach necessary to address America's infrastructure needs and stands in stark contrast to plans outlined by progressive advocates. The Trump plan seems designed to curry headlines rather than spur a serious media conversation about infrastructure.

    On June 5, the White House released a vague six-page infrastructure outline touting the Trump administration’s goal to invest “at least $1 trillion in total infrastructure spending” over the next decade along with numerous other initiatives. A close reading of the plan, coupled with the White House’s budget request for the 2018 fiscal year, shows that it is not actually a plan to invest $1 trillion in our nation’s roads, bridges, and other vital infrastructure. Instead, it is a proposed $200 billion tax giveaway to developers and construction contractors, which the administration hopes would spur additional private sector investment of up to $1 trillion.

    Aside from a controversial side project that would break up and privatize the Federal Aviation Administration’s (FAA) air traffic control systems, which has encountered pushback from both the head of the FAA and from Trump’s own transportation secretary, the Trump infrastructure agenda included few specific policies. Most major media outlets saw the “infrastructure week” gambit for what it was, a transparent attempt to distract media attention away from the looming congressional testimony of former FBI Director James Comey.

    This isn’t the first time the Trump administration has hastily rolled out an incomplete economic agenda in hopes of distracting the press from the challenges it’s facing. In late April, as the administration neared its 100th day in office with no major legislative accomplishments, the White House rolled out a comically incomplete one-page tax plan that was pilloried in the press. The plan called for “a radical reordering” of tax policy that The New York Times projected “would significantly benefit the wealthy.” The hastily drafted tax plan was described as “a frantic last push” for a policy victory after what media observers had dubbed “100 days of failure.”

    By all accounts, the White House’s head fake on infrastructure failed, in part because the president couldn’t keep himself on message. But the attempt to again use vitally important domestic policy debates as a ploy to manipulate media attention underlines a telling problem with the Trump White House. The administration’s approach to economic policy seems to be little more than a media game -- a shame given the extent of necessary investments and reforms needed nationwide.

    According to the American Society of Civil Engineers (ASCE), the United States faces a $2 trillion spending shortfall over the next decade to make necessary upgrades to its D+ rated infrastructure. The Congressional Progressive Caucus (CPC) has a plan to make precisely those investments, and another plan floated earlier this year by Senate Democrats would bridge at least part of the funding gap. By comparison, the White House’s contribution to this substantive infrastructure debate is a flimsy and exaggerated series of tax cuts and controversial public-private partnerships that bear a closer resemblance to trickle-down economics than to infrastructure policy.

    The “infrastructure week” gimmick failed to create the headlines the administration wanted, and the White House has reportedly put little effort into turning its agenda into viable legislation. Millions of Americans stand to benefit from actual investments in public infrastructure, and those millions of people deserve more from the White House than fleeting attempts to gin up good press.

  • LGBTQ media highlight repercussions of Trump’s budget proposals

    Blog ››› ››› ALEX MORASH


    Dayanita Ramesh / Media Matters

    News outlets, experts, and health care advocates blasted President Donald Trump’s federal budget proposal that would rip health care away from millions while eliminating key HIV prevention and research programs. If enacted, these cuts would have a disproportionately devastating impact on members of the LGBTQ community, who rely more heavily on Medicaid than the general public does and face higher rates of HIV infection.

    Outcries continue to grow in response to Trump’s federal budget proposal for the 2018 fiscal year. The proposal faced immediate criticism for its unrealistic revenue projections and was branded by critics as a “repugnant grab bag” of cuts to vital anti-poverty and public health programs to pay for part of a massive tax cut for top earners. The latest criticism of Trump’s budget comes from public health experts and LGBTQ media, which are pointing out that its cuts to Medicaid, coupled with harsh reductions in funding of HIV treatment, prevention, and research add up to a reprehensible swipe at the LGBTQ community.

    Cuts to Medicaid would disproportionately affect the LGBTQ community, which faces higher levels of poverty than the public at large. On May 28, NBC Out reported that Trump’s budget would hit the LGBTQ community in several ways. Stephen Forssell, director of George Washington University’s graduate program in LGBTQ health policy, explained that Medicaid is “hugely important” for LGBTQ Americans, who are more likely than others to rely on the program:

    Medicaid is "hugely important" for the LGBTQ community," (sic) Gruberg told NBC Out, noting that 18 percent of lesbian, gay, bisexual and transgender people have Medicaid compared to 8 percent of non-LGBTQ people.

    Gruberg also noted that Medicaid is the "largest source of coverage for people with HIV in the U.S.," adding that "a $1.4 trillion cut to Medicaid over 10 years will be detrimental to the ability of people living with HIV to get the health care they need to survive."

    HIV funding is of great concern for the LGBTQ community and faces steep cuts in the White House’s budget. The Health Resources and Services Administration (HRSA) outlined that the fiscal year 2018 budget would include a $59 million reduction to the Ryan White HIV/AIDS program, including eliminating all its funding for LGBTQ and minority education and HIV prevention. The Ryan White HIV/AIDS program funds health care services for individuals living with HIV as well as public service education programs about the virus. The program is named after an HIV activist who fought for the program’s enactment before tragically passing away just months before it was authorized after battling the virus.

    On May 31, the Washington Blade highlighted the funding cuts to the Ryan White HIV/AIDS program and an additional $186 million in proposed cuts to the Center for Disease Control and Prevention’s (CDC) work on HIV and other sexually transmitted infections (STIs). Doug Wirth, CEO of the nonprofit Amida Care, called Trump’s budget proposal a “cruel and callous attack” on those living with HIV. Advocacy groups argued that the funding cuts would lead to “more suffering” for those living with HIV, and the AIDS Institute criticized the White House’s “severe cuts” while noting that the 19 percent cut to the CDC’s HIV prevention program would set back efforts to eliminate the virus.

    According to the Kaiser Family Foundation, gay and bisexual men represent 2 percent of the American population but make up 56 percent of all Americans living with HIV and 55 percent of all HIV-related deaths in the U.S. The CDC reported that while HIV diagnoses have declined overall in recent years, diagnoses have increased among gay and bisexual men. The CDC found that much of the increase was among men of color and even projected that one out of every two black gay and bisexual men would become infected with the virus during their lives. Currently, gay and bisexual men make up 67 percent of all new HIV infections:

    Trump’s cuts to HIV programs are eerily reminiscent of cuts Vice President Mike Pence imposed on Indiana during his tenure as governor. Pence followed through on right-wing media’s obsession with defunding Planned Parenthood and cut funding to the health care provider ostensibly to reduce abortions, but in doing so actually shut down access to the only HIV testing centers available to many Indiana residents and may have inadvertently caused an HIV epidemic in rural parts of the state. Pence has a long history of supporting right-wing media causes against the LGBTQ community and during the 2016 presidential campaign was called out by MSNBC host Rachel Maddow for statements he made while serving in Congress.

    Trump campaigned as an alleged ally of the LGBTQ community, but community leaders recently slammed his “shameful” refusal to sign a proclamation declaring June LGBTQ Pride month, ending an eight-year tradition. The Trump administration also faced pushback after it announced it would not allow Americans to self-identify as LGBTQ in the 2020 national census.

  • Fox uses “lousy” May jobs report to push Trump's job-killing economic agenda

    Blog ››› ››› ALEX MORASH

    Fox News used the Bureau of Labor Statistics’ (BLS) underwhelming jobs report for the month of May as proof that Congress needs to pass President Donald Trump’s trickle-down economic agenda that, in reality, would strip working- and middle-class Americans of basic public services and hand top income earners a gigantic tax cut.

    On June 2, BLS released its jobs report for May 2017, which estimated the United States added 138,000 new jobs last month while the unemployment rate fell slightly to 4.3 percent. The jobs number fell below economists’ expectations and The Washington Post declared that the report showed that the “job market stumble[d]” last month. While the number of new jobs reported was weaker than expected, The New York Times noted the overall health of the economy was still strong enough for the Federal Reserve to possibly raise interest rates and pointed out that wage growth was up 2.5 percent from this time last year.

    In response to this news, Fox pushed the absurd claim that the report is proof that big business needs Congress to pass Trump’s economic agenda of tax cuts and gutting consumer protections to stoke further economic growth and job creation. During the June 2 edition of Fox News’ Fox & Friends, guest Steve Hilton, host of The Next Revolution, used the jobs report to claim the U.S. was in a “jobs crisis” and needed Trump’s economic agenda to be enacted. On Fox Business’ Varney & Co., host Stuart Varney described the jobs number as “lousy” and “disappointing” while correspondent Ashley Webster claimed the jobs number shows the American economy is “in a holding patterning” that is “waiting on Washington” to act. Fellow Fox Business host Maria Bartiromo added that “what this jobs number tells us is that business is still cautious” and companies are “sitting on cash” because they are “strangled by all of the regulatory environment” and waiting for Congress to pass Trump’s agenda:

    In reality, Trump’s economic agenda has been described as a “repugnant grab bag” of tax cuts for top-income earners that guts funds for Medicaid, children’s health insurance, food assistance, medical research, disease prevention funding, disability insurance, and even college student financial aid while watering down consumer protections to give Wall Street investors a $100 billion windfall. Trump’s budget proposal to slash funding for vital health assistance programs has been described as “ruthless” and would exact a huge human cost from those who lose access to care.

    Far from being a jobs savior, Trump’s economic agenda has faced heavy criticism from economists for relying on “voodoo” economic theories that falsely claim tax cuts will lead to economic growth. Research from the nonpartisan Congressional Research Service and Brookings Institution have found no link between tax cuts and economic growth. Economist Jason Furman has also slammed Trump’s tax cut agenda for proposing to add trillions of dollars to the federal debt in ways that could hamper economic growth. Trump’s tax proposals have been blasted by economists and experts across the political spectrum, who have argued that his restrictive approach to international trade and immigration, if enacted, may actually dampen economic activity. Even Trump’s proposals to reduce supposedly burdensome regulations in the financial industry fly in the face of facts -- Trump has proposed dismantling the Dodd-Frank Act, but the Government Accountability Office concluded in 2016 that Dodd-Frank protections have “contributed to the overall growth and stability in the U.S. economy.”

    Fox figures have attempted to use the monthly jobs report to advance the president’s agenda since he first took office. Fox used the reports to claim unearned victories for the president, and even once used a jobs report described as “weak” to declare it was “the most successful day” of Trump’s presidency. Last month, a Fox Business panel attempted to spin the April jobs report as a reason to pursue Trump’s tax and regulatory policies with no evidence to back up its claims. Next month will likely produce more of the same.

  • MSNBC’s Elise Jordan faceplants while trying to find a silver lining in CBO’s new Trumpcare score

    The House-passed health care bill is arguably worse than the disaster from two months ago

    Blog ››› ››› CRAIG HARRINGTON

    The Congressional Budget Office (CBO) released another estimate of the budgetary and insurance market impacts likely to stem from the American Health Care Act (AHCA) if the version passed earlier this month by House Republicans becomes law. The score was arguably worse than a gruesome estimate first published on March 13, a fact seemingly lost on MSNBC conservative commentator Elise Jordan, who tried to defend the bill and failed.

    On the May 24 edition of MSNBC’s Deadline: White House, correspondent Kasie Hunt spent several minutes detailing the CBO estimate released just minutes earlier, noting that AHCA was estimated to reduce federal deficits by $119 billion through 2026 at the cost of increasing the uninsured population by 23 million. Hunt added that the CBO believes people living with preexisting health conditions would be “ultimately unable to purchase health insurance at premiums that are about what they face under current law” if they lived in states that use a waiver of these existing patient protections built into the AHCA.

    After Hunt concluded her segment by pointing out that the new CBO projections are not “dramatically different” than previous economic estimates, host Nicolle Wallace turned to a panel of guests to discuss possible political fallout for a bill that was already polling as low as 17 percent. Political analyst Dr. Jason Johnson predicted that the health care legislation would prove to be “a death knell for the midterm elections” before Jordan claimed the CBO estimate was “actually better than I expected” because “they do have a substantial savings of $119 billion, and it wasn’t looking that way in previous estimates of the prior plan.” Jordan pitched this report as proof that GOP-led health care reform could at least reduce government spending even if it couldn’t increase insurance coverage.

    Unfortunately for Jordan, she is not convincing anyone. In its March 13 estimate, the CBO predicted the AHCA would kick 24 million people off their health insurance over ten years and reduce deficits by $337 billion. A March 23 estimate also found that a new amendment to AHCA would reduce deficits by $150 billion while still kicking 24 million people off insurance. The May 24 estimate of the version of the AHCA actually passed by the House contains by far the least deficit reduction (just $119 billion over ten years) but still predicts almost the same number of insurance losses.

    More importantly, Jordan is egregiously exaggerating the significance of deficit reductions stemming from the bill. According to the CBO, the U.S. federal government will spend $49.9 trillion through 2026 and accumulate $8.6 trillion in additional deficit under current law, meaning the AHCA results in a meager deficit reduction of just 1.4 percent -- in exchange for virtually doubling the number of uninsured.

    Watch the full segment here:

    *This blog has been updated to clarify the AHCA's impact on long-term federal deficits.

  • Experts point out Trump’s budget “just doesn’t add up”

    White House budget proposal bases its revenue numbers on unrealistically high economic growth projections

    Blog ››› ››› ALEX MORASH

    Experts and journalists have pointed out that President Donald Trump’s budget numbers for the 2018 fiscal year do not add up, as they rely on unrealistic growth expectations. Nonpartisan experts say the gap between the White House’s estimates and the Congressional Budget Office’s is “the largest on record.”

    On May 23, the White House released its full budget proposal, which not only calls for kicking millions of working- and middle-class Americans off vital public assistance programs to make room for gigantic tax cuts for top income earners, but also bases its tax revenue projections on expected annual gross domestic product (GDP) growth of 3 percent by 2020. While right-wing media commentators have repeatedly defended trickle-down economic fantasies that predict unlikely levels of economic growth because of tax cuts for the rich, assuming such growth when determining revenue projections for the federal budget hides the true cost of Trump’s devastating budget plans.

    Experts and journalists quickly noted the absurdity of Trump’s projections in their coverage of the budget request. In a Washington Post blog, former Treasury Secretary Larry Summers, an economist at Harvard University, called the logic of Trump’s growth assumptions “simply ludicrous” and compared it to believing in the tooth fairy. On the May 23 edition of MSNBC Live, economist Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities (CBPP), told host Ali Velshi that Trump’s budget “does not add up at all” while noting that economic growth “is a function of the growth of the labor supply,” and that’s going to slow as the country grows older. Bernstein compared the chances of Trump’s projections coming true to the chances of a kitchen appliance coming to life to sing and dance, concluding that it is reckless for budget numbers to be “based on on these kinds of fairy tales”:

    On May 23, Vox correspondent Matt Yglesias pointed out that for anyone over 35, annual growth of 3 percent “doesn’t sound outlandish” because it is reminiscent of GDP growth during the 1990s. But Yglesias noted that if the United States did manage today to replicate 1990s-level growth in the labor force, productivity, and capital investment, “even under that rosy scenario” the growth rate would not hit 3 percent:

    In a May 24 column for Vox, economist and former Obama adviser Jason Furman explained in even more detail why 3 percent economic growth was “extremely unlikely,” with a specific focus on the slowing growth of the labor force. Furman also noted that the American economy is already growing faster than other advanced economies around the world, which have struggled to keep pace.

    As FiveThirtyEights Ben Casselman explained, the reason this level of growth is not currently attainable is that during the 1990s, the U.S. saw “rapid growth in its labor force and rapid gains in the productivity of that labor force.” By comparison, the baby boom generation today is retiring, not entering the workforce, which slows labor force growth, and “growth in productivity has slowed to a crawl” as electronic and internet-based technologies from the 1990s have matured.

    On May 24, The Washington Post’s Ana Swanson also looked at how realistic Trump’s growth projections would be with regard to labor force growth after Mick Mulvaney, director of the Office of Management and Budget, told reporters that much of the growth could come from getting the 6 million Americans marginally attached to the workforce to be fully employed. Yet, as Swanson noted, adding 6 million workers to the 160 million Americans already in the labor force would generate only 2 percent growth.

    Trump’s budget projections were not just debunked for lacking numbers based in reality; CBPP pointed out the historic gap between the White House’s economic growth projections and those of the nonpartisan Congressional Budget Office (CBO). According to a May 22 CBPP blog post, Trump’s budget proposal projects $3 trillion less in deficit accumulation using its 3 percent growth model than it would using the CBO’s less optimistic economic forecasting. The difference is even more striking because, as CBPP pointed out, the gap between the White House’s proposal and CBO forecasting is “the largest on record”:

  • Fox News can’t believe 44 million Americans qualify for food assistance

    The number of food stamp recipients is roughly equal to the number of people living in poverty, far below number who qualify for assistance

    Blog ››› ››› CRAIG HARRINGTON

    Fox News contributors and hosts defended President Donald Trump’s draconian budget request for fiscal year 2018 by coalescing around a talking point also voiced by the White House that spending cuts for nutrition assistance programs are justified because of their gut feeling that too many people are using them. In the real world, the number of food stamp recipients is roughly equal to the number of Americans living in poverty, which has remained elevated since the last recession ended.

    During a May 23 press conference discussing Trump’s budget request, NBC News correspondent Peter Alexander asked Mick Mulvaney, the director of the Office of Management and Budget (OMB), to defend the president’s decision to cut programs like Social Security and Medicaid that he had promised to protect during the campaign. Mulvaney falsely claimed that no person who “really needs” assistance will be removed from the programs, and turned to Trump’s proposed new restrictions to the Supplemental Nutrition Assistance Program (SNAP), commonly known as “food stamps,” as an example. Mulvaney noted that the number of SNAP recipients “spiked during the recession” to over 42 million and complained that it remains high today “eight years removed from the end of the recession.” Mulvaney ended his remark by wondering “why is the number still that high?”:

    Mulvaney’s unfounded gut feeling that the number of people receiving SNAP benefits is too high was endlessly reiterated by Fox News and Fox Business personalities who have a long track record of attacking the program. On the May 22 edition of America’s News Headquarters, contributor Mercedes Schlapp bemoaned the so-called “entitlement mentality” of Americans who might oppose unnecessary cuts to food assistance. Later that day, on Your World with Neil Cavuto, host Cavuto complained the number of SNAP recipients has “ballooned to over 44 million today” (it’s actually 42 million), baselessly suggesting it was “not sustainable,” while conservative columnist Carrie Sheffield falsely claimed that federal food assistance has “crowded out the private sector.”

    Fox returned to the complaint on May 23, dedicating time on Fox Business’ Cavuto: Coast to Coast and Risk & Reward to the same talking point that 44 million SNAP recipients seemed like too many and therefore the program must be cut. On Making Money with Charles Payne, host Payne and guest Liz Peek falsely argued that food assistance programs are meant only to be “emergency programs” while lamenting the number of users. During that day’s edition of Your World, Cavuto returned again to his complaint about the number of people enrolled in SNAP, remarking that if 44 million Americans are really in need of food assistance “we’re Mozambique, we’re not America.” Moments later, Cavuto was joined by Rep. Jim Jordan (R-OH), who defended adding new restrictions to food assistance programs and agreed with Cavuto’s characterization that there is no way so many people truly qualify for assistance.

    Contrary to this misleading characterization, the number of SNAP recipients is actually lower than the number of people who qualify for the program and is roughly equal to the number of people living in poverty (see graph below). One would expect the number of SNAP beneficiaries to largely mirror the number of Americans living in poverty because the program is available, with some restrictions, for individuals earning up to 130 percent of the federal poverty level.

    For much of the program’s history, the number of people who actually participated in the federal food assistance program was far less than the number who struggled with poverty and the number who potentially qualified for assistance. That began to change during the Bush and Obama administrations, when technological improvements and a bipartisan effort to tackle stigma helped get more deserving families and individuals enrolled in the program. Rates of waste, fraud, and abuse in the system have actually fallen as participation increased and, according to a November 2016 report from the Department of Agriculture, which administers the program, the gap between the number of Americans who qualify for assistance and the number who receive it has been narrowing for years:

  • Some of the best media take downs of Trump’s “repugnant grab bag” of a budget

    ››› ››› ALEX MORASH

    On May 23, President Donald Trump released his vision for the fiscal year 2018 federal budget titled, “A New Foundation for American Greatness,” which called for deep cuts to Medicaid, Social Security Disability Insurance (SSDI), student loan assistance, and anti-poverty programs geared toward working- and middle-class Americans while providing gargantuan tax cuts for top income earners and increasing military spending. As details of the budget began to surface in the lead up to the announcement, Media Matters identified some of the best take downs from journalists and experts hammering the proposal for its “ruthless” cuts.

  • Media fell for Trump's spin that cutting Social Security isn't really a cut to Social Security

    Trump promised not to touch Social Security during the campaign, but some reporters reframed that broken promise for him

    Blog ››› ››› CRAIG HARRINGTON


    Sarah Wasko / Media Matters

    A number of usually reliable reporters were duped by White House spin that President Donald Trump’s draconian budget proposal for fiscal year 2018 to slash spending for Social Security Disability Insurance (SSDI) was not a violation of his major campaign pledge to protect Social Security from cuts.

    During his June 16, 2015, announcement to run for president, Trump clearly and unequivocally promised that if he was elected, he would “save Medicare, Medicaid, and Social Security without cuts.” Trump’s campaign declaration fit previous statements he made in the run-up to his announcement, wherein he claimed he was “the only [Republican] who won’t cut Social Security” and stated “I am going to save Social Security without any cuts.” Trump even hit then-presidential candidate Mike Huckabee for copying his call to safeguard Social Security with “no cuts” and later reiterated his promise to “save” the program while attacking former presidential candidate and current member of Trump’s cabinet Ben Carson:

    After Trump’s repeated statements that he would not cut Social Security, the White House’s decision to include significant cuts to SSDI in its 2018 budget request represents a broken campaign promise. Some journalists -- including Washington Post reporter Philip Bump, Los Angeles Times columnist Michael Hiltzik, and NBC News reporter Benjy Sarlin -- caught on to what was actually being proposed, and Vox’s Dylan Matthews stated that these cuts clearly break “a crucial campaign promise.” Yet, despite this, several other journalists fell for the White House’s misleading spin.

    In the midst of an otherwise brutal recap of Trump’s budget, HuffPost reporter Arthur Delaney claimed “the document mostly honors Trump’s unorthodox campaign promise not to cut Social Security or Medicare” before actually quoting Mick Mulvaney, the director of the Office of Management and Budget, as he expounded on proposed cuts to “disability insurance.”* In her write-up of the budget that detailed the profound impact it will have on low-income communities, New York Times reporter Yamiche Alcindor noted that Trump “would cut access to disability payments through Social Security” but casually added “the main function of Social Security — retirement income — would flow unimpeded.” New York Times reporter Julie Hirschfeld Davis included similar misleading language in her report on the budget, arguing, “The blueprint also steers clear of changing Social Security’s retirement program or Medicare” and promoting the administration’s claim that Trump’s promise to protect “retirement” was intact.

    Washington Post reporters Damian Paletta and Robert Costa also fell for the White House’s misdirection gambit, writing of the president’s campaign rhetoric: “Trump insisted that they could not cut retirement benefits for Social Security.” NPR reporter Scott Horsley also detailed the “significant cuts to social safety net programs” while promoting the Trump administration’s spin that the campaign promise was merely to “preserve” the “Social Security retirement program.” Axios reporter Jonathan Swan managed to write a review of Trump’s budget that committed both sins; first claiming that the Trump budget fulfilled “his campaign promise” not to touch Social Security and later claiming that it merely would not affect retirees**:

    ORIGINAL: President Trump's 2018 budget proposal on Tuesday won't reform Social Security or Medicare — in line with his campaign promise — but it will make serious cuts to other entitlement programs. A source with direct knowledge tells me the Trump budget will save $1.7 trillion on the mandatory side over the next ten years.

    CURRENT: President Trump's 2018 budget proposal on Tuesday won't cut Social Security payments to retirees or Medicare, but it will make serious cuts to other entitlement programs. A source with direct knowledge tells me the Trump budget will save $1.7 trillion on the mandatory side over the next ten years.

    *The HuffPost report was corrected after pressure from readers and disability advocates to include the word “mostly.” The original post did not include that conditional language and incorrectly stated “the document honors Trump’s unorthodox campaign promise not to cut Social Security or Medicare.”

    **The Axios report was changed after its initial publication but no editor’s note or correction was added to indicate the revision. Media Matters had criticized the original language of the article in a May 22 blog.

  • News reports on Trump's budget highlight human cost of his broken promises

    Budget proposal will include deep cuts to Medicaid and Social Security, programs Trump promised to protect during campaign

    Blog ››› ››› ALEX MORASH

    Multiple news outlets have reported on the harsh human toll of President Donald Trump’s budget proposal, which is expected to gut programs that guarantee basic living standards, including parts of Medicaid and Social Security. These cuts directly contradict Trump’s promise to save the programs “without cuts.”

    The White House first hinted at slashing programs that help working- and middle-class Americans on February 26 when, according to Bloomberg, Trump floated proposals to increase defense spending by 10 percent while cutting programs including assistance for low-income Americans while still promising not to touch Medicare, Medicaid, and Social Security. The White House claimed these drastic cuts would help spur economic growth, an absurd claim that was resoundingly ridiculed by economists as “deep voodoo” and “wholly unrealistic.” The administration’s initial budgetary proposals were so drastic and poorly thought out that they stunned many observers and experts. The White House even advocated cutting assistance to the Corporation for Public Broadcasting, which would be particularly harmful to “small-town America,” and Meals on Wheels, which “doesn’t make economic sense” and would cruelly deny millions of elderly Americans basic companionship and a hot meal.

    On May 21, The Washington Post reported that the White House will unveil a formal federal budget proposal that goes even further than the administration’s earlier indications by proposing “massive cuts to Medicaid” and other anti-poverty public assistance programs. On May 22, Axios reported that the president plans to cut $1.7 trillion over 10 years from federal assistance programs including the Supplemental Nutrition Assistance Program (SNAP), the Children’s Health Insurance Program (CHIP), and Social Security Disability Insurance (SSDI), which collectively serve tens of millions of people. (Axios incorrectly stated that Trump’s budget plan “won’t reform Social Security or Medicare,” before outlining Trump’s plan to cut SSDI and incorporate massive Medicaid restrictions that would become law if his Obamacare repeal plan is ever enacted.)

    As details of Trump’s budget plan continued to leak, some media outlets explained the devastating consequences for millions of Americans if the White House gets its way and these drastic cuts take effect. They also explained that Trump’s embrace of deep cuts to components of Medicaid and Social Security represent a betrayal of his promises from the campaign.

    CNN chief business correspondent Christine Romans explained on the May 22 edition of CNN Newsroom that much of the money being cut from mandatory spending would come from Medicaid, which could see up to a 25 percent reduction in federal funding, pushing the financial burden onto the states and kicking 14 million people off their health insurance programs. Romans mentioned that protecting Medicaid is one of many campaign promises from Trump “that are turning out not to be true.”

    On the May 22 edition of MSNBC Live, host Chris Jansing went even further in breaking down the human toll of Trump’s budget cuts with NBC News senior editor Beth Fouhy and New York Times national reporter Yamiche Alcindor. The show aired part of an interview with a mother of two young children, who told Fouhy that if these cuts are enacted, the costs of care for her child with cerebral palsy will bankrupt her. Then they showed a clip of Trump on the campaign trail proclaiming that he would “save Medicare, Medicaid, and Social Security without cuts.” Alcindor discussed a report she wrote for the Times earlier this month about the human costs of budget cuts that would lead eliminate programs that help provide small communities with access to clean drinking water, drug rehabilitation centers, and jobs programs:

  • An Overwhelming Majority Of Economists Are Predicting Failure For Trump’s Tax Cut Agenda

    Will Journalists Continue To Take Trump’s Empty Economic Promises Seriously?

    Blog ››› ››› ALEX MORASH

    According to a new survey from the University of Chicago, vanishingly few economists agree with the claim of President Donald Trump’s administration that blowing up the deficit with tax cuts for the rich will pay for itself by generating new economic growth. Professional economists have warned of Trump’s economic agenda for over a year; when will news outlets stop taking his boasts seriously?

    On April 26, the Trump administration unveiled a plan to slash taxes for high-income earners, and Treasury Secretary Steven Mnuchin implausibly claimed the tax proposal “will pay for itself” by stoking latent economic growth. Last week, a new survey by the University of Chicago’s Booth School of Business showed that almost no professional economists agree with Mnuchin’s prediction that the plan will “pay for itself.” A May 4 article in The Washington Post described the findings as proof that “economists aren't buying” the Republican Party’s trickle-down economic agenda while a May 5 article from Vox noted that the results were “a rare display of unanimity” among economists. In statements given to both outlets, Massachusetts Institute of Technology (MIT) economist David Autor described Trump’s tax cut plan as “a fiscal disaster.” The survey results showed only two of 37 economists who answered the question agree with the statement that Trump’s tax proposal “would likely pay for itself.” Both these economists later clarified that they misread the question and had meant to register their disapproval. Stanford economist Kenneth Judd later told the Post, “I screwed up on that one … I meant to say that this is a horrible idea, a bad idea -- no chance in hell.” From the University of Chicago:

    This timely rebuke by economists of Trump’s economic smoke and mirrors seemed to have been lost on CNN, which spent much of May 5 promoting the inexplicable claim that unnamed "economists" think Trump's rhetoric alone had so far been enough to stoke economic growth. CNN host Jake Tapper falsely claimed “many economists credit” Trump’s promise of tax cuts, deregulation, and profligate spending for job creation since he took office. CNN chief business correspondent Christine Romans bizarrely claimed throughout the day that Trump’s “rhetoric” about the economy was responsible for a minuscule uptick in manufacturing sector employment, which rebounded substantially under former President Barack Obama.

    The survey results showing that economists don’t trust Trump’s tax cutting agenda add to a growing body of evidence demonstrating that cutting taxes for the rich is a bad way to boost the economy. Nobel Prize-winning economist and New York Times columnist Paul Krugman called Trump’s trickle-down economic plan a return to the “voodoo economics” of the Bush and Reagan administrations and pointed to numerous examples of previous Republican administrations cutting taxes and not spurring growth. Independent research from the Congressional Research Service and Brookings Institution has been unable to find a causal relationship between tax cuts and economic growth, and many experts who hammered Trump’s fiscal policy proposals have pointed out that his restrictive approach to trade and immigration is likely to dampen economic activity, not enhance it.

    Trump has been pilloried for having only a few credentialed economists on his economic policy team and 370 economists, including eight Nobel laureates, signed a letter denouncing his repeated lies and “conspiracy theories” about the state of the American economy. It is no wonder that Trump could not manage to garner the support of a single former member of the White House Council of Economic Advisers during his presidential campaign. What remains to be seen is why any media outlet, such as CNN last week, would take his positions seriously or accept his policy proposals at face value.

  • MSNBC's Ali Velshi Outlines The "Built-In Unfairness" Of Trump's Tax Plan

    Blog ››› ››› MEDIA MATTERS STAFF

    MSNBC outlined the major problems in President Donald Trump's proposed tax cut plan, which drastically reduces the corporate tax rate from 35 percent to 15 percent while lowering personal tax rates for high-income individuals at expense of almost all tax deductions that benefit the middle class.

    On the April 27 edition of MSNBC's MSNBC Live, host Katy Tur discussed Trump's tax outline with correspondent Ali Velshi and conservative economist Peter Morici, outlining how the plan could greatly reduce the president's personal and business tax burden while saving the Trump family billions of dollars in future estate taxes. Velshi argued the proposed reductions in corporate tax rates and creation of a new income loophole for some contractors and business owners created "built-in unfairness" in the tax system. Morici added that Trump's plan would not assist the middle class and complained that the administration had only produced a one-page memo "with a lot of white space" despite having five months to craft substantial tax reform proposals:

    During the next hour of MSNBC Live, Velshi introduced another segment on the proposed tax cuts by noting that Trump is making "a frantic last push for what has eluded him in his first 100 days: a major legislative accomplishment." Joined by MSNBC contributor Charlie Sykes and Democratic strategist Steve McMahon, Velshi noted that "we don't actually know" what Trump's tax agenda is to which Sykes responded, "this is not a bill, it's basically a press release ... there is no meat to the substance." Sykes added that, while he leans toward conservative tax policy, he does not think "there is any rational way" to claim Trump's plan helps the middle class or can avoid "blow[ing] an enormous hole in the federal deficit." After Velshi detailed a laundry list of middle-class tax credits that "could go away" under the plan, McMahon highlighted that Trump's plan "is going to be an absolutely huge windfall for very wealthy people":

  • Broadcast Evening News Programs Pilloried Trump’s Tax Cut Outline

    ››› ››› CRAIG HARRINGTON

    Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn finally unveiled President Donald Trump’s plan for a major overhaul of individual and corporate income taxes in the United States during an April 26 press briefing. The plan, which seemed to many observers like a less detailed version of the budget-busting agenda Trump campaigned on, was assailed by reporters and economic analysts on the major broadcast evening news programs for its sparse details and profligate giveaways to the wealthy, including a likely tax break for the president himself.