Cuts to Medicaid and maybe Medicare

Briefly, a fast read . . .

Trumps extension of the 2017 Tax Cuts and Jobs Act (TCJA) is a $3.8 trillion extension of it which will mostly benefit the wealthy and corporations. Professor Heather at “Letters from an American” (to which I subscribe) had this to say yesterday about the extension current being passed by The House. She also raises an alarm about what may happen to Medicare under “Pay as You Go.”

Professor Cox Richardson:

“But the center of the law is indeed related to money: it is the $3.8 trillion extension of Trump’s 2017 tax cuts, which disproportionately benefit the wealthy and corporations. Yesterday the nonpartisan Congressional Budget Office said that Americans in the lowest tenth of earners will lose money under the measure while people in the top five percent of earners will see a tax cut of $117.2 billion, more than 20% of the tax cuts in the bill.

Poorer Americans take a hit from the bill because it cuts federal healthcare and food assistance programs to partially offset the costs of the tax cuts. Cuts to Medicaid are expected to leave at least 9 million people without healthcare coverage. Cuts of about 30% to the Supplemental Nutrition Assistance Program would be “the biggest cut in the program’s history,” Ty Jones Cox, vice president for food assistance policy at the Center on Budget and Policy Priorities, told Lorie Konish of CNBC. They would cut about $300 billion from the program through 2034. More than 40 million people, including children, seniors, and adults with disabilities, receive food assistance.

Yesterday the CBO reported that the measure will add $2.3 trillion to the deficit over ten years and noted that when a budget adds too much to the federal deficit, it triggers cuts to Medicare (not a typo) under the Pay-As-You-Go law. The CBO explains that those cuts are limited by law to 4% but would still total about $490 billion from 2027 through 2034.”

Tobias Burns of The Hill summed it up: ‘Republicans’ tax-and-spending cut bill will take from the poor and give to the rich, Congress’s official scoring body has found.’”

“House GOP bill’s $2.3 trillion increase in debt could lead to Medicare cuts,” The Hill