GOP pulls away from Social Security cuts

Written by on February 18, 2023

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Republicans: Cutting Social Security a no-go

Sen. Rick Scott’s (R-Fla.) plan to sunset all federal programs in five years will no longer apply to Medicare and Social Security, revealing just how untouchable the programs have become in spending negotiations.

© Peter Afriyie, The Hill

Scott has amended his much-maligned plan, maintaining he never meant for it to apply to Medicare, Social Security and “other essential services.” 

“Note to President Biden, Sen. Schumer and Sen. McConnell — As you know, this was never intended to apply to Social Security, Medicare, or the U.S. Navy,” Scott wrote in bolded letters in his updated plan.

The change indicates that Democrats have won the messaging war over the popular programs, which appear to be off-limits in spending negotiations over the debt limit.

That shouldn’t be a huge surprise, as President Biden got Republicans to applaud the idea of ensuring funding for Medicare and Social Security at the State of the Union.

Still, the White House isn’t convinced Republicans have given up on trying to overhaul the programs, stating that it’s been a long-sought goal for the party.

“Make no mistake, his true colors are undeniable and on the record,” White House press secretary Karine Jean-Pierre said of Scott on Friday.

Scott was under pressure from fellow Senate Republicans who blamed his policy plan for their disappointing 2022 election performance.

McConnell said last week that Scott’s stance on retirement benefits would present a “challenge” to his reelection prospects in Florida. 

The Hill’s Alexander Bolton has the full story on Scott’s changed plan.

Welcome to The Hill’s Business & Economy newsletter, we’re Karl Evers-Hillstrom, Aris Folley and Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue.

Key business and economic news with implications this week and beyond:

A new budget report pulling the insolvency date for Social Security to within a decade is prompting fresh unease among senators and a greater urgency to act.

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Several dozen employees of a Tesla factory in Buffalo, N.Y., have been fired after they organized to form a union, according to a complaint filed with National Labor Relations Board as well as two people who are helping organize the group.

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Disney employees are pressing against an upcoming mandate for them to return to work in-person four days a week, launching a petition to ask CEO Bob Iger to reconsider, The Washington Post reported Thursday.

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Upcoming news themes and events we’re watching:

  • The Commerce Department will release the second estimate of gross domestic product (GDP) growth for 2022 and the final quarter of last year next Thursday.
  • New inflation data from the personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred gauge of price growth—comes next Friday.

Branch out with more stories from the day:

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WASHINGTON (AP) — The Environmental Protection Agency on Friday reaffirmed the basis for a rule that requires “significant reductions” in mercury and other harmful pollutants from power plants, reversing a move late in former President Donald Trump’s administration to roll back emissions standards.

Business and economic news we’ve flagged from other outlets:

  • Meta Gives Thousands of Staff Subpar Reviews (Wall Street Journal)
  • Amazon tells employees to be in the office at least three days a week (CNBC)
  • Fed Can’t Reach 2% CPI Without Crushing Economy, El-Erian Says (Bloomberg News)

Top stories on The Hill right now:

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A filing in Delaware state court by Dominion Voting Systems as part of the company’s blockbuster lawsuit against Fox News and its parent company contains never-before-revealed vignettes from inside the network in the days that followed the 2020 election.  Read more

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Apple is boosting its lobbying might as President Biden nears a decision next week on whether to block a potential Apple Watch ban.  Read more

Opinions related to business and economic issues submitted to The Hill:

You’re all caught up. See you next week! 

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