The Morning Sixpack - May 28, 2025

Trump is a “TACO”; Social Security still taxed; Trump pardons MAGA-linked exec; Musk blasts Trump bill; CDC drops COVID vaccine for kids & pregnant women; US pauses student visas

Wall Street Has a New Code Word for Trump—and It’s Hilariously Accurate

Wall Street investors are cashing in on President Trump’s predictable pattern of threatening tariffs—and then backing off.

They’ve coined a new four-letter acronym: TACO, which stands for “Trump Always Chickens Out.” This term captures the rollercoaster market reactions every time Trump announces massive tariffs, causing stocks to plunge, only to delay or drop them later and watch the markets bounce back.

Financial Times commentator Robert Armstrong is credited with creating TACO, a name that perfectly sums up the chaos. The latest example came when Trump threatened 50% tariffs on Europe, sending markets tumbling on Friday. By Sunday, he had postponed the tariffs to resume trade talks, sparking a sharp rebound when markets reopened Tuesday.

Ted Jenkin, president of Exit Stage Left Advisors, explained the now-common Wall Street playbook: “Once he delivers bad news, investors buy the beaten-down stocks, waiting for him to chicken out and watch those stocks rebound.”

University of Michigan economist Justin Wolfers points out that this dynamic is unprecedented. “Under no previous presidency did we have active markets betting on the president’s resolve,” he told Barron’s. “That’s no longer true. But what’s really hard is that it’s not even obvious when it’ll be true, and when it won’t be. Madness.”

Armstrong added a cheeky note about the acronym’s power: “Acronyms are very powerful, especially when they remind people of foodstuffs.”

Source: MDGN

Trump’s Promise to End Social Security Taxes Falls Short in House Tax Bill

President Trump pledged to eliminate taxes on Social Security benefits—but the new House tax bill delivers only a partial fix. Instead of fully exempting Social Security from income tax, the legislation offers seniors a temporary $4,000 deduction starting in 2025, which helps some but leaves many still paying taxes on their benefits.

The deduction targets modest-income seniors but excludes the lowest earners—who already pay no taxes—and the wealthiest. It also doesn’t help younger recipients of survivor or disability benefits, nor fully covers those delaying benefits until age 70.

Tom O’Saben of the National Association of Tax Professionals calls the bill “a far cry from making Social Security tax-free,” noting it falls short of the nearly $100 billion revenue loss a full exemption would create. The current compromise limits revenue loss to about $18 billion annually and avoids disturbing Social Security trust funds.

The bill now heads to the Senate, where some Republicans might resist further tax cuts due to deficit concerns. Yet as Alex Durante of the Tax Foundation explains, “It’s politically unpopular to be the person to say ‘No tax relief for seniors’ when the president promised it.”

Under the proposal, seniors 65 and older would get an additional deduction alongside the existing senior standard deduction and the base standard deduction—adding up to significant savings for some but not the total relief Trump promised.

Source: WSJ

Trump’s Last-Minute Pardon Spares Nursing Home Exec with Ties to MAGA Fundraising

Paul Walczak dodged prison and a $4.4 million restitution thanks to a presidential pardon timed just weeks after his mother’s $1 million Mar-a-Lago fundraiser.

Walczak, a former nursing home CEO who pleaded guilty to tax crimes, had argued that his prosecution was politically motivated because of his mother, Elizabeth Fago’s, deep ties to Trump’s campaigns and efforts to undermine Biden’s 2020 run.

Fago, who raised millions for Trump and Republicans, was linked to the scheme involving Ashley Biden’s stolen addiction diary—a political bombshell that drew FBI attention. The pardon application claimed Walczak was targeted more for his family’s political involvement than his admitted misuse of employee tax funds for luxury purchases including a $2 million yacht.

Despite hundreds of clemencies granted to allies, Walczak’s pardon came only after Fago attended an exclusive Mar-a-Lago dinner hosted by MAGA Inc. Just 12 days after his prison sentence was handed down, Trump’s pardon wiped away the penalty, challenging a judge’s claim that there’s “not a get-out-of-jail-free card” for the wealthy.

A White House official framed the pardon as a response to what they called the Biden administration’s political targeting of Walczak and his family’s conservative activities. Meanwhile, Walczak’s social media celebration included a “Make Paul Great Again” hat and the hashtag #MAGA.

Source: NYT

Elon Musk Slams Trump’s $3.8 Trillion Spending Bill, Claims DOGE Team Is the Scapegoat

Elon Musk’s once-close bromance with Donald Trump is hitting turbulence as the Tesla and SpaceX CEO blasts the White House for “undermining” him and treating the DOGE team like “whipping boys.”

Speaking ahead of a SpaceX Starship launch (and catastrophic failure), Musk called out Trump’s massive spending bill, saying it “increases the budget deficit, not just decreases it,” and accused Washington of blaming DOGE for problems it didn’t cause.

Musk expressed frustration that every setback in D.C. leads to blame on DOGE, despite the team having little to do with those issues. Once a frequent Trump ally and titled “First Buddy,” Musk’s political foray stirred controversy—leading to protests against Tesla, a nosedive in stock prices, and widespread backlash.

After saving an estimated $160 billion by cutting federal agencies and firing around 250,000 government workers, Musk admits he “probably did spend a bit too much time on politics” and recently scaled back his White House involvement to refocus on SpaceX’s Mars ambitions.

Musk’s criticism of Trump’s “Big, Beautiful Bill” was clear: “I think a bill can be big or it can be beautiful, but I don’t know if it can be both.” The $3.8 trillion legislation threatens to balloon the already staggering $36 trillion national debt, making Musk question if his political detour was worth the cost.

Despite the tension, Trump insists there’s no bad blood and praised Musk’s dedication to DOGE, while Musk focuses on his ultimate mission: making humanity a multi-planet species.

Source: Daily Mail

CDC Drops COVID Vaccine Recommendations for Healthy Kids and Pregnant Women

The CDC has removed COVID-19 vaccines from the recommended immunization schedule for healthy children and pregnant women, signaling a major shift in U.S. public health policy.

Health and Human Services Secretary Robert F. Kennedy Jr. announced the decision, framing it as a step toward fulfilling President Trump’s promise to “make America healthy again.” (MAHAhahahahahahaha!)

This change means it will become harder for children and pregnant women to get vaccinated, as insurance coverage for these shots will likely disappear. Kennedy criticized last year’s Biden administration push for additional COVID boosters in children, calling it unsupported by clinical data.

FDA Commissioner Dr. Martin Makary and NIH Director Dr. Jay Bhattacharya supported the move, citing a lack of evidence that healthy kids currently need the vaccine and noting that many countries have already stopped recommending it for children.

The decision was made without input from the CDC’s Advisory Committee on Immunization Practices, which hasn’t yet met to weigh in. Public health experts worry it will cause confusion and limit choices for families and doctors.

Dr. Steven J. Fleischman of the American College of Obstetricians and Gynecologists expressed disappointment, stating, “COVID infection during pregnancy can be catastrophic and lead to major disability.” The change follows recent policy tightening that restricts booster access mainly to high-risk groups.

Source: NPR

According to their own report, pregnant women face significantly higher rates of stillbirth if infected with COVID during pregnancy. Science!

U.S. Halts New Student Visa Interviews Amid Expanded Social Media Screening

The Trump administration has ordered a pause on new visa interviews for international students as it prepares to ramp up social media vetting for applicants.

In a directive from Secretary of State Marco Rubio, U.S. embassies worldwide were instructed to freeze scheduling new student and exchange visitor visa appointments until further notice.

This temporary halt does not affect students who already have scheduled interviews, but it casts uncertainty over how many hopefuls will face delays entering U.S. universities this fall. The administration’s move is part of a broader effort to tighten scrutiny of applicants’ social media activities, raising concerns among students and educators. Because, you know, freedom of speech cannot be infringed upon—unless you speak negatively about Dear Leader!

International student enrollment reached a record 1.13 million in the 2023-2024 academic year, with 71.5% coming from Asia—primarily India, China, and South Korea. Many top U.S. universities, including Harvard and NYU, rely heavily on these students for a significant portion of their populations.

The pause follows a wider crackdown on foreign students who have expressed political views critical of U.S. policies, especially those supporting Palestinians, exemplified by the recent revocation of a Columbia University PhD candidate’s visa over her social media posts.

While the State Department insists it will “use every tool” to vet entrants, the policy change adds a layer of uncertainty for thousands seeking education in the U.S.

Source: Al Jazeera