Latest news with #MayaMacGuineas
Fibre2Fashion
23-07-2025
- Business
- Fibre2Fashion
Trump's OBBBA to add $3.39 trn to primary debt from 2025 to 2034: CBO
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, would add $3.39 trillion to the US primary debt between 2025 and 2034, according to a recent report by the non-partisan Congressional Budget Office (CBO). The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. The increase is estimated to result from a decrease in direct spending of $1.1 trillion and a decrease in revenues of $4.5 trillion, CBO said. The One Big Beautiful Bill Act would add $3.39 trillion to the US primary debt between 2025 and 2034, a report by the Congressional Budget Office said. The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to the Committee for a Responsible Federal Budget. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "It's still hard to believe that policymakers just added $4 trillion to the debt. Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation. But when they actually had an opportunity to fix it, they instead made it $4 trillion worse," said MacGuineas in a statement. 'Modelers from across the ideological spectrum universally agree that any sustained economic benefits are likely to be modest, or negative, and not one serious estimate claims this bill will improve our financial situation,' she said. As of mid-2025, the US national debt stands at over $36.2 trillion, and the debt-to-gross domestic product ratio has exceeded its peak during World War II. President Donald Trump signed the bill into law after weeks of debate among congressional Republicans. The bill passed the Senate 51-50 before it passed the House of Representatives 218-214. Democrats have universally criticised the bill. Fibre2Fashion News Desk (DS)
Yahoo
21-07-2025
- Health
- Yahoo
No more Medicare? Pessimistic clients look for advice
Americans are increasingly pessimistic about the future of Medicare, but few are prepared to take on the medical costs themselves, according to a new survey from Retirable and eHealth. The study, based on a nationwide survey of 1,111 Americans, found that among adults not yet enrolled in Medicare, 4 in 5 said they're worried the federal health insurance program won't be there for them in old age. Data suggests that Americans are right to be worried. The latest report from the Social Security and Medicare Trustees projects an 11% cut to Medicare benefits by 2033, when the program's Hospital Insurance Trust Fund is expected to run out. READ MORE: Long-term care costs can derail retirement plans. Here's how to manage them "Social Security and Medicare won't even be able to pay full benefits to current retirees — they will be insolvent when today's 59-year-olds reach the full retirement age and today's youngest retirees turn 70," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement. Despite their concerns, most Americans are not prepared for the scale of medical costs that they're likely to incur in retirement, according to the survey. Roughly three-quarters of respondents underestimated or didn't know the average cost of healthcare in retirement. While 40% of respondents said they expect to spend $100,000 or less, research shows that the average retiree can expect to spend nearly $200,000 on healthcare costs throughout retirement. Advising clients on the future, now The impact of Medicare funding shortfalls is a distant reality for many clients, but that hasn't stopped them from worrying about it in the present, advisors say. "These questions are coming up more often with our millennial clients," said Alvin Carlos, a financial advisor and managing partner at District Capital Management in Washington, D.C. "They're skeptical about Social Security and Medicare being around, and honestly, I get it. Trust in the government is low, and the numbers on Medicare's funding don't look great. But I try to strike a balance between realism and panic." Survey results indicate that Carlos' clients reflect a broader trend: millennials were the most doubtful about Medicare's future. READ MORE: Employees want to save $1.28 million for retirement — are they even close? "I tell clients to plan as if Medicare will still be around in some form, but not to count on it covering everything. It's not likely to disappear entirely, but changes like higher eligibility ages or more out-of-pocket costs are very possible," Carlos said. "So we build in a cushion. For example, we estimate $200,000 to $300,000 in lifetime retirement medical expenses for most couples, even with Medicare. And we're intentional about setting aside savings for health costs, either in a regular brokerage account or an HSA if they qualify." Advisors like Tipiwa Walker, the founder of Lucre Advisory in Brooklyn, New York, say that planning around future unknowns is often not the best approach for young workers. "My advice to younger clients on this is that they should base their plans on what is known, rather than what is yet unknown," Walker said. "What they can control is the prudence of their financial plan and strengthening it so that it is robust enough to handle any future adverse changes in Medicare, or anything else that is beyond their control." A political imperative When it comes to Medicare, financial advisors do not always share the same concerns as the average American. For John Power, a financial advisor at Power Plans in Walpole, Massachusetts, programs like Social Security and Medicare are simply too popular not to be funded. "It is one of the most valued programs in the country, and the aging population is getting larger, not smaller," Power said. "They are voters, and politicians who vote against sustaining these programs will be voted out posthaste." READ MORE: As Social Security claims surge, young investors brace for its absence Avoiding cuts to the program could be achieved through a variety of options, but Americans are hesitant to support them. Survey respondents were presented with a range of possible solutions to ensure Medicare's survival, but none of them were well-received. The most popular option, reducing benefits for current beneficiaries, still only received support from 3 out of 10 respondents. A plurality of survey respondents (34%) said they would not support any of the proposed solutions, which included reducing benefits, increasing Medicare payroll taxes and delaying the age of eligibility. Still, even if Medicare were to face a funding shortfall, Power said it's not worth it to plan around projected lifetime costs for any expense in retirement. "I worry about how much to build into the annual budget because that can be understood and managed — Medicare cost, plus supplemental insurance cost, plus out-of-pocket cost for co-pays, deductibles, etc.," Power said.
The Hill
21-07-2025
- Business
- The Hill
Trump's ‘big, beautiful bill' will cost $3.4 trillion over about a decade: CBO
The 'big, beautiful bill' that President Trump signed into law earlier this month will add nearly $3.4 trillion to the nation's deficits over roughly the next decade, the Congressional Budget Office estimated in a report on Monday. The analysis released by the nonpartisan budget scorekeeper projected the bill would add $3.394 trillion to the nation's deficits from 2025 to 2034. A lion's share of the cost comes from the plan's tax provisions – a core element of the bill – which are estimated to decrease revenues by more than $4 trillion into 2034, while also cutting federal dollars for social programs like Medicaid and food stamps. The biggest tax cuts in the bill are extensions of cuts first passed in 2017. They include a reduction of the corporate tax rate to 21 percent from 35 percent as well as reductions of most individual income tax rates. The bill boosts the standard deduction while getting rid of personal exemptions. Major business tax provisions in the law other than the lower corporate rate include a 20-percent deduction for businesses like S-corps and LLCs, which pass their tax liability onto their owners. There's also an advanced depreciation schedule for businesses that allows deductions to be made up front as well as a new accounting standard for interest payments, which is especially valued by companies that pay for assets with borrowed money, such as the leveraged buyout and private equity sectors. The bill also raised the state and local tax (SALT) deduction cap – one of the most controversial provisions within the Republican conference – to $40,000 from $10,000. That was a big win for blue state Republicans who threatened to spike the legislation if the cap wasn't lifted. The tax-and-spending cut bill includes a number of provisions pledged by President Trump while on the campaign trail, including changes to taxes on tips and overtime and a new credit for seniors. Estimated revenues through 2034 pertaining to the Senate Finance Committee, which has jurisdiction over taxes in the upper chamber, will diminish by more than $4.5 trillion. Republicans are likely to dispute the recent cost estimate, as the president and administration officials have sought to downplay the cost of the plan's tax cuts. The argument has drawn sharp criticism from budget hawks, some of whom have argued the true cost of the plan is likely higher than the recent CBO estimates given its potential macroeconomic effects. 'It's still hard to believe that policymakers just added $4 trillion to the debt,' Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement on Monday. 'Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation. But when they actually had an opportunity to fix it, they instead made it $4 trillion worse.' The CBO estimated on Monday that the overall plan, which includes major changes to Medicaid, would lead to an additional 10 million people without health insurance in 2034. The law also includes what some Republicans have hailed as a 'historic' $150 billion boost for defense programs, along with more than $160 billion to help advance the president's deportation and border security plans. At the same time, the bill includes major changes that could lead to hundreds of billions dollars in reduced spending for Medicaid and Supplemental Nutrition Assistance Program (SNAP), new restrictions for student loan borrowers and the phase-out of multiple popular repayment plans, as well as changes targeting the Consumer Financial Protection Bureau's funding.
CNBC
07-07-2025
- Business
- CNBC
The growth effects from GOP megabill will add to deficit long-term, says CRFB's Maya MacGuineas
Maya MacGuineas, Committee for a Responsible Federal Budget president, joins 'The Exchange' to discuss the cost of Trump's Big, Beautiful Bill.
Bloomberg
02-07-2025
- Business
- Bloomberg
Bloomberg Surveillance: Tax Bill and Markets
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney July 2nd, 2025 Featuring: 1) Jim Caron, CIO: Cross Asset Solutions at Morgan Stanley Investment Management, talks about market uncertainty and the underappreciated upside risk to equities. US equity futures held firm ahead of the June payrolls report and trade talks developments. Markets await the monthly payrolls report, which will offer fresh insight into the labor market and the path of interest rates, with US Treasuries retreating across the curve 2) Dan Ives, Global Head: Technology at Wedbush Securities, reacts to Tesla sales. The company's shares rose 23% in the last quarter despite the expected sales decline, but have since fallen amid a feud between Elon Musk and Donald Trump. 3) Maya MacGuineas, President of the Committee for a Responsible Federal Budget, talk about how President Trump's tax legislation would affect the US debt and deficit. Moderate and ultra-conservative GOP lawmakers have pushed for changes to the bill, citing concerns over Medicaid cuts, spending reductions, and the scale of the tax bill, with some vowing to oppose the bill in its current form. 4) John Gimigliano, Principal and head of the Federal Legislative and Regulatory Services Group at KPMG, on why the tax bill is no slam dunk as it heads back to the House, and who are the winners and losers in the bill. House Speaker Mike Johnson can only afford to lose three Republican votes, and with unified Democratic opposition, the bill's passage is uncertain, despite Trump's public pressure on Republicans to back the bill. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including a WSJ on food makers rolling out lower prices and smaller package sizes, as well as an NYT story on whether someone is "cool."
