Trump Budget Steals from Feds to Finance Tax Cuts for Wealthy, Corporations

Categories: Budget, The Insider

In December 2017, the Republican Congress passed and President Trump signed into law a massive $1.5 trillion tax overhaul that benefited mostly the wealthy and big corporations. The most prominent tax cut was a permanent reduction of the corporate income tax rate from 35 percent to 21 percent. These tax cuts resulted in a $113 billion deficit increase in 2018 alone, the biggest increase since the Great Recession. And now the Trump administration is targeting working families to pay for the tax giveaway to corporations and the 1 percent.

In its fiscal 2020 budget proposal, various public services, including public health and education, are being slated for massive cuts. Federal employees’ pay and benefits are also on the chopping block.

Here’s how the Trump administration is proposing to steal from federal employees to pay for tax cuts for the cor porations and the wealthiest 1 percent of Americans :

  • Freeze your pay in 2020.
  • Change annuity calculation to be based on the average of your highest five years of salary instead of the highest three.
  • Require you to pay 1 percent more every year toward your annuity program until the amount reaches 50 percent of the total cost.
  • Eliminate cost-of-living adjustments (COLA) for Federal Employees Retirement System (FERS) retirees.
  • Reduce COLA for Civil Service Retirement System (CSRS) retirees by 0.5 percent.
  • Eliminate the FERS supplement for employees who are eligible or forced to retire before Social Security kicks in at age 62.
  • Reduce the interest rate of the Thrift Savings Plan’s government securities (G) fund.
  • Slash agency funding, including jobs. The administration, for example, wants to get rid of nearly 2,000 positions at the Environmental Protection Administration.

The proposal comes as 800,000 federal employees are still reeling from the financial chaos caused by the Trump administration’s 35-day government shutdown. Many still haven’t received all their back pay. While the administration sees the cuts as just numbers, real people suffer.

“With this budget proposal, President Trump is showing once again that his administration has nothing but contempt for the health, education, safety, and security of our nation – and a savage disregard for the federal workforce that keeps our country running.,” said AFGE President J. David Cox Sr. “We wholly reject the cruel and self-defeating vision for America that this budget represents.”

Join us to right this wrong

This budget proposal is a robbery in broad daylight, and we will not allow it. If you are a federal employee and haven’t joined our union, join us today and get in the fight to protect your job, your pay, your benefits and your retirement.

We’re also urging federal employees to call your member of Congress and senators and tell them to reject any proposals that would cut your job, pay, benefits, or retirement.

 


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