Broken promises and budget realities

Thanks to Donald Trump for recognizing the needs of the MEGA lower-income population. Your unheard call was finally answered. However, a powerful leader may overlook his original promises. He may reward important campaign donors. External events beyond his control may shape his program. In any case, it is essential to examine the programs and their impacts.

Here are some relevant facts:

The benefits of the first Trump administration went disproportionately more to upper-income earners and large corporations rather than the MAGA lower-income population. With the 2017 Trump tax law, households with incomes in the top 1 percent will receive an average tax cut of more than $60,000 in 2025, compared to an average tax cut of less than $500 for households in the bottom 60 percent, according to the Tax Policy Center¹.

The national debt has risen by $7.7 trillion during Trump's first term in office. It amounts to about $23,500 in new federal debt for every person in the country. This raises the cost of debt for the government and households. On May 16, Moody's Ratings downgraded the US credit rating, citing an inability of the nation to address large and growing deficits.

Trump's disbelief in climate change and cancellation of the many programs will disproportionately hurt the lower-income population, which is more likely to be victims of a climate-related disaster or not be able to purchase an air conditioner for the summer's extreme temperatures. Health is impacted by heat-related illnesses, respiratory illnesses, water-related illnesses, food system impacts, insect-borne diseases, and mental health effects.

The proposed One Big Beautiful Act would also enact the largest-ever cuts to the Medicaid program, contributing to nearly 14 million Americans losing their health insurance. This surge in the uninsured would place immense pressure on hospitals, clinics, and other healthcare providers nationwide.

The trade tariffs raise prices for everyone and are detrimental to the economy. Inflation will hurt the MAGA lower-income population more than others. To a certain extent, Trump has realized this and has lowered his position and reversed it several times. The trade policies are supposed to increase manufacturing jobs in the US. Today, the number of manufacturing jobs available exceeds the demand. The work is very exhausting and poorly paid.

Again, the upper classes will receive most of the benefits from the proposed new budget. "Wealthier taxpayers appear set to receive more benefits from this bill than poorer ones. Taxpayers with the highest incomes will see their household resources increase by 4% in 2027 and 2% in 2033, largely due to the extended tax cuts, the CBO estimated earlier this week. The poorest taxpayers would see their resources drop by 4% in 2033, largely due to the downsized benefit programs,” according to the Congressional Budget Office. All these tax breaks and other spending come with a major cost. Congress's non-partisan fiscal scorekeeper, the Congressional Budget Office (CBO), estimates that the bill's tax policies alone will add $ 3.8 trillion to the federal deficit².

As Musk points out, the cuts in government spending will be completely overshadowed by the proposed new bill, which increases government debt and, eventually, the cost of borrowing. A bill cannot be that big and beautiful. This means higher interest rates on mortgages and every kind of debt.

So, what could be an honest and fair way to help the MAGA lower-income population?

Press for a balanced budget. This is supposedly a Republican tradition and is the primary way to keep your mortgage and interest rates down.

Demand a bigger share of the benefits pie, a share where it is needed, not more for those who are already well-to-do. This could come in many ways. It could be in the form of reduced taxes for lower-income wage earners. Or it could take the form of a special benefit for healthcare or college education.

Federal wages could be increased for lower-income workers; labor unions could be less restricted. These are not traditional Republican policies, but work has to become more meaningful, and incomes less skewed in favor of the rich.

Significantly increase the local community activities that can bring us together. Community psychology has made significant contributions in this area. We need to find the American spirit that can heal us. A rewarded and renewed MAGA might be the place to start. Why not?

In future articles, I intend to explore in greater detail the opportunities for fair MAGA policies.