The proposed Republican tax bill could result in issues for senior American citizens , as the “ pay as you go ” rules include ##ing severe cuts to federally - funded programs such as Medicare . The tax bill has been passed as the Tax Cuts and Jobs Act through the House by Republicans through a 227-to-205 vote . The bill represents the new hope for the Trump amendment , which aims to gain a legislative victory after the healthcare defeat of recent months . The bill ’s aim is to reduce taxes for the middle - class , as well as businesses . However , the cuts proposed could cause a negative impact on healthcare for seniors . The Paygo , or pay - as - you - go , budget regulation requires all tax cuts to be covered by tax increases or mandatory spending cuts . In this case , if the 10-year cost is larger than $ 0 , it will trigger sequestration , or spending cuts for mandatory spending programs . At present , the GOP tax plan cost stands at $ 1.5 trillion . The Congressional Budget Office believes that sequestration will cause $ 136 billion worth of cuts to mandatory spending in 2018 , if capital is not raised through another method . The $ 136 billion in cuts is likely to be made through a decrease in spending to Customs and Border Patrol operations , agricultural subsidies , Student Loan Administration funding and some health funding for the Affordable Care Act or Obamacare . It would also be made from a $ 25 billion cut to Medicare , which covers approximately 58 million Americans , of which five out of six are aged over 65 . Though Paygo can not cut Medicare by more than 4 percent in one 12-month period , it will likely be triggered in 2020 if the deficit has not been cleared by 2019 . This could cause a 4 percent cut to Medicare every year until the deficit has been paid . The move would , however , cause President Trump to break his campaign promise to leave “ entitlement programs ” such as Medicare out of cuts . The GOP had been seeking to cut Medicaid funding by $ 800 billion with their previously proposed reforms , and the tax bill may provide a legal way to do so . The present tax bill also includes a link between tax provisions and the Chained Consumer Price Index ( CPI ) , which could mean less money for Social Security recipients for the cost of living as smaller annual inflationary increases may allow the government to save money .
The proposed Republican tax bill could result in issues for senior American citizens, as the “pay as you go” rules risk causing severe cuts to federally-funded programs such as Medicare. The tax bill has been passed as the Tax Cuts and Jobs Act through the House by Republicans through a 227-to-205 vote. The bill represents the new hope for the Trump administration, which aims to gain a legislative victory after the healthcare defeat of recent months. The bill’s aim is to cut taxes for the middle-class, as well as businesses. However, the cuts proposed could cause a negative impact on healthcare for seniors. The Paygo, or pay-as-you-go, budget regulation requires all tax cuts to be covered by tax increases or mandatory spending cuts. In this case, if the 10-year cost is larger than $0, it will trigger sequestration, or spending cuts for mandatory spending programs. At present, the GOP tax plan cost stands at $1.5 trillion. The Congressional Budget Office believes that sequestration will cause $136 billion worth of cuts to mandatory spending in 2018, if capital is not raised through another method. The $136 billion in cuts is likely to be made through a decrease in spending to Customs and Border Patrol operations, agricultural subsidies, Student Loan Administration funding and some health funding for the Affordable Care Act or Obamacare. It would also be made from a $25 billion cut to Medicare, which covers approximately 58 million Americans, of which five out of six are aged over 65. Though Paygo cannot cut Medicare by more than 4 percent in one 12-month period, it will likely be triggered in 2020 if the deficit has not been cleared by 2019. This could cause a 4 percent cut to Medicare every year until the deficit has been paid. The move would, however, cause President Trump to break his campaign promise to leave “entitlement programs” such as Medicare out of cuts. The GOP had been seeking to cut Medicaid funding by $800 billion with their previously proposed reforms, and the tax bill may provide a legal way to do so. The present tax bill also includes a link between tax provisions and the Chained Consumer Price Index (CPI), which could mean less money for Social Security recipients for the cost of living as smaller annual inflationary increases may allow the government to save money.