The long-term effect of the GOP tax plan is to increase taxes on Americans of lesser means in order to lower taxes on the American's rich. In addition, the GOP is looking at slashing 'entitlement' spending (Medicare, Social Security, etc.)
The possibility of cuts to safety net programs appeared more likely on Tuesday, as the Congressional Budget Office warned that the tax bill could set off an arcane budget rule that would make deep cuts to Medicare over the next decade. Republican lawmakers have turned a blind eye to the effect of the tax bill on the deficit, saying the tax cuts would essentially pay for themselves through increased economic growth.
Paul Ryan admitted that Republicans will be looking at cutting 'entitlement' programs.
At a town hall-style event in Virginia on Tuesday night, Paul D. Ryan, the House speaker, said the most important steps that could be taken to reduce the national debt were spurring economic growth and making changes to entitlement programs. “You cannot get the national debt under control, you cannot get that deficit under control, if you don’t do both: grow the economy, cut spending,” said Mr. Ryan, Republican of Wisconsin.
Other Republicans have mirrored Ryan's comments.
Representative Kevin Brady, Republican of Texas and the chairman of the Ways and Means Committee, said this month that tax overhaul “alone won’t get us back to a balanced budget.” He said that House Republicans would soon turn toward “welfare reform and tackling the entitlements.”