Do Republicans want to eliminate Social Security and Medicare?

Republicans have lambasted President Biden for claiming during his State of the Union speech that some in the GOP want to cut federal funding for Social Security and Medicare benefits. Despite the bluster, Democrats stand by their assertion that a number of Republicans have indeed proposed such cuts. Here’s everything you need to know: 
What did Biden claim during his speech? 
The president said that at least some Republicans “want Social Security and Medicare to sunset.” This was met by a chorus of boos from Republicans in the room. Georgia GOP Rep. Marjorie Taylor Greene, a prominent opponent of Biden, yelled out to the president that he was a “liar.”
Biden took the moment to flip the script on the GOP, saying: “As we all apparently agree, Social Security and Medicare are off the books now, right? It’s not to be touched?” This prompted a bipartisan round of applause from the gathered Congress.
After the speech, House Majority Leader Steve Scalise (R-La.) told NBC News that the president was “falsely saying that there are people that want to get rid of Social Security and Medicare,” claiming that “it’s been inaccurate for a long time” and that “there’s no truth to it.”
So who is being truthful? 
Some Republicans have proposed eliminating Social Security and Medicare. While NBC noted that “there is no bill with GOP consensus to change those programs,” Republicans have put forth “various proposals to rein them in over time.” The most prominent of these proposals was made by Sen. Rick Scott (R-Fla.). Scott, who helmed the GOP’s Senate campaign arm during the midterm elections, released a plan in 2022 in which he writes that “all federal legislation sunsets in five years. If a law is worth keeping, Congress can pass it again.” 
In a statement after Biden’s speech, Scott claimed that Social Security and Medicare were not part of his plan. However, his proposal says that all federal legislation would cease to be effective within five years. 
Sen. Mike Lee (R-Utah) was seen during the State of the Union shaking his head at Biden’s insinuations. Following the speech, Lee said on a podcast that Biden had “mischaracterized what half the people in the chamber believe.”
However, Joe Scarborough noted on MSNBC’s Morning Joe that Lee had previously proposed the idea of cutting both programs. “You have Mike Lee, first of all, acting shocked … who’s ever proposed sunsetting Social Security and Medicare? First of all, Mike Lee did,” Scarborough said, adding that Lee “doesn’t even want to sunset it, [he] wants to destroy it.”
Morning Joe played a clip of Lee from 2010 in which he is heard saying that it was “his objective to phase out Social Security.” Lee says that he wants to “pull it out by its roots and eliminate it,” adding, “Medicare and Medicaid are of the same sort, they need to be pulled up.”
Not everyone in the GOP is on board with cutting the programs. TIME noted that Senate Minority Leader Mitch McConnell (R-Ky.) has “repeatedly denounced Scott’s proposal, which wasn’t promoted by any other major candidates.”
Still, the party seems poised to, at the very least, change the way Social Security and Medicare eligibility works. The Republican Study Committee, described by The Washington Post as an “influential House group that drafts GOP policy proposals,” unveiled a budget blueprint in 2022. In this blueprint, the age of Medicare eligibility would be raised from 65 to 67, while Social Security eligibility would be raised from 65 to 69. The White House has released a fact sheet listing a number of Republicans who have proposed budget cuts to these programs, including Sen. Ron Johnson (R-Wisc.) and Sen. John Thune (R-S.D.).
What’s next?
Speaker of the House Kevin McCarthy (R-Calif.) has said that the idea of cutting Social Security and Medicare is “off the table.” His comments came as both Democrats and Republicans work to try and pass a fiscal package to raise the debt ceiling and avoid defaulting on the nation’s debts. 
However, “with only a [Republican] four-seat majority, getting a deal on the debt ceiling will be made all the more difficult,” NPR noted, adding that “Republicans also largely refuse to look at cuts to defense spending. And balancing the budget — and tackling a ballooning federal debt — can’t be done by cutting discretionary spending alone.”
This means that the GOP would likely look elsewhere for ways to slash the budget, and many Democrats aren’t buying the Republican promise that Medicare and Social Security are off limits. 
“The idea that we suddenly forced a conversion of Republicans on the question of protecting Social Security and Medicare, I don’t think that’s actually what occurred,” Sen. Chris Murphy (D-Conn.) told MSNBC, adding that he had “watched Republicans for a decade trip over themselves to propose new ways to cut Social Security and Medicare.”

FIRST ON CNN: DOJ officially decides not to charge Matt Gaetz in sex-trafficking probe

The Justice Department has informed lawyers for at least one witness that it will not bring charges against Florida GOP Rep. Matt Gaetz after a years-long federal sex-trafficking investigation, according to a source familiar with the matter.

What Big Tech CEOs are saying about their companies’ layoffs

Layoffs are sweeping the tech industry. The culling began in late 2022, and has continued into 2023. Each new round of layoffs comes with a remorseful statement from a company executive, justifying what Bloomberg’s Tim Culpan calls “the coldhearted approach to workforce cuts.” Most companies are blaming the economy for their business woes, but the problems really stem from “boneheaded decisions made by CEOs,” writes Ed Zitron at Insider. Some bosses are owning up to their mistakes outright. Others are pointing to economic pressures, trying to “save their reputation while sidestepping the blame,” Zitron says. Here’s a look at some of the most recent layoffs, and the boss’ reasoning, in their own words:
Paypal 
Online payments company Paypal recently announced it would be laying off 2,000 employees, or about 7 percent of the its workforce. In a press release, PayPal CEO Dan Schulman said the slumping economy was mostly to blame for the job cuts, while simultaneously praising the company’s ongoing restructuring efforts. 
“We made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customer’s needs,” Schulman said. “While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do.”
Dell 
Dell announced it would be laying off 6,650 workers, or around 5 percent of its workforce. The company has seen a drop in demand for its main products — PCs and laptops — and this was cited as the main reason for the job cuts.
“Market conditions continue to erode with an uncertain future,” COO Jeff Clarke said in a memo to employees. Indeed, The Verge noted that there had been a 37 percent decline in Dell’s computer shipments during the holidays. 
Clarke also said that the cost-cutting measures Dell implemented, such as limiting travel and reducing outside services spending, simply had not been impactful. “The steps we’ve taken to stay ahead of downturn impacts — which enabled several strong quarters in a row — are no longer enough,” he said. 
Microsoft
Once the pillar of the tech industry, Microsoft still remains among the largest players in the space. But it isn’t immune to the troubles plaguing Big Tech. The company announced it would be laying off 10,000 workers, which is a big number but amounts to less than 5 percent of its total workforce. 
Microsoft CEO Satya Nadella said in a memo the cuts were a cost-saving measure amidst an economic downturn and ongoing efforts to turn towards more AI-based advancements. 
“This is the context in which we as a company must strive to deliver results on an ongoing basis, while investing in our long-term opportunity,” Nadella said. “It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know this is a challenging time for each person impacted.”
He added that the company would also continue to invest in other strategic areas beyond hiring. 
Salesforce
Some company executives acknowledged the mistakes that made job cuts a necessity. 
Salesforce, a company that makes cloud-based software for businesses, recently announced it would eliminate 8,000 jobs, or about 10 percent of the company’s workforce, citing concerns about the “environment” of the tech space and a dip in the economy.
In a letter to employees announcing the layoffs, Salesforce CEO and co-founder Mark Benioff said the company had hired too many people, and blamed himself. 
“I’ve been thinking a lot about how we came to this moment. As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” Benioff wrote. “For those who will be leaving Salesforce, our priority is to fully support them, including by offering a generous package.”
Salesforce indeed ramped up hiring in a major way last year. The New York Times reported the company employed 80,000 people at the end of October 2022, compared to just 48,000 three years earlier. 
Google
Google’s parent company, Alphabet, announced it would layoff 6 percent of its workforce, or about 12,000 employees. The layoffs reportedly came rather quickly, with some employees saying they were notified out of the blue about being let go. In a memo to employees obtained by CNBC, Alphabet CEO Sundar Pichai��suggested the layoffs were necessary because the company over-hired. 
“Over the past two years, we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Pichai wrote. “We’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company. The roles we’re eliminating reflect the outcome of that review.”
Pichai said he took “full responsibility for the decisions that led us here.”
Jonathan Bellack, a 15-year veteran of the company who was planning to retire in 2023, told ABC News his firing left him feeling torn. “A lot of people had no idea that this was happening or that they might be involved,” he said. “For them, it’s obviously a shock.”
Philips
Dutch conglomerate Philips makes everything from high-end coffee machines to light bulbs, but it has recently shifted mostly to focus on health technology. Phillips announced that it would be eliminating 6,000 jobs, bringing the total number of recent layoffs at Philips to 10,000, or about 13 percent of its workforce. The company said half of the layoffs will be made this year, while the other half will be made by 2025. 
Philips has seen its profits dip due to a respiratory device recall that Reuters reported slashed 70 percent of the company’s market value. Philips CEO Roy Jakobs seemed to pin at least part of the blame for the layoffs on a poor company strategy, saying, “we did not execute well.” He told CNBC the cuts were a “necessary intervention to help us to become competitive and lean in the way we go forward in the market.”
Zoom
Video conferencing platform Zoom did very well during the COVID-19 pandemic, when everyone was working from home. But the so-called “Zoom Boom” has met its end as workers return to the office. The company said it would be laying off 1,300 employees, or about 15 percent of its workforce. 
“I know this is a difficult message to hear, and certainly not one I ever wanted to deliver,” Zoom CEO Eric Yuan said in a memo to employees. Yuan noted that the shift away from remote work had taken a toll on the company’s profits and stock prices, even if Zoom remains a widely utilized tool.
“As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom,” Yuan said, adding that “the uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves.”
Yuan also did something out of the ordinary and announced that he himself would take a significant pay cut and also forgo his 2023 bonus. While details were not finalized, Yuan said he would slash 98 percent of his salary, which Bloomberg reported was $301,731 in 2022.

Arizona’s possible 3-way 2024 Senate race could make history

This post was originally published on this siteIf Arizona sees a three-way Senate race in 2024, it would be the first in decades for the state and a rarity in the U.S. Senate.     

McCarthy leans on ‘five families’ as House GOP plots debt-limit tactics

The White House and Senate Democrats have calculated that Speaker Kevin McCarthy won’t have enough votes to raise the national borrowing limit and will end up caving to their demands to avoid a first-ever debt default — with no strings attached or any conditions whatsoever.

3 former Twitter executives to testify Wednesday at House hearing over handling of Hunter Biden laptop story

Three former Twitter executives are testifying Wednesday at the House Oversight Committee over Twitter’s decision to temporarily suppress a New York Post story regarding Hunter Biden’s laptop, in what’s set to be the first high-profile hearing for the new Republican majority investigating President Joe Biden’s administration and family.

Labor Secretary Marty Walsh expected to leave Biden administration

Labor Secretary Marty Walsh is expected to depart the Biden administration soon, according to two people familiar with the matter, marking the first Cabinet secretary departure of President Joe Biden’s presidency.

Jill Biden’s State of the Union guests include Tyre Nichols’ parents, Bono, Ukraine ambassador, Paul Pelosi

Paul Pelosi, Tyre Nichols’ parents, U2 star Bono, Monterey Park shooting hero Brandon Tsay, Ukraine’s ambassador to the US Oksana Markarova and a Holocaust survivor are among those headed to the US Capitol Tuesday evening where President Joe Biden is set to deliver his State of the Union address.

How to watch President Joe Biden’s State of the Union address

President Joe Biden is scheduled to deliver his second State of the Union address Tuesday night at the US Capitol.

Yellen sees ‘path in which inflation is declining significantly’

This post was originally published on this siteTreasury Secretary Janet Yellen on Monday said she sees the possibility of “significantly” easing inflation in the U.S. economy, even as the government deals with the ramifications of reaching its borrowing limit and as economists worry about a potential recession. “You don’t have a recession when you have […]

Tagged debt limitextraordinary measuresfederal reserveinflationJanet YellenTreasury Departmenttreasury secretary