How the Republican plan to cut Medicaid would crush the working class, benefit the wealthy

Rep. Pelosi is right – The Republican plan to cut Medicaid to fund tax cuts for the wealthy and corporations would have severe consequences for millions of American families, particularly those in the lower income brackets.

• The proposed $880 billion cut to Medicaid would slash incomes for the bottom 40% of households.
  
• An average family of four making about $80,000 per year could see a $1,700 tax hike in 2026.
  
• The cuts would disproportionately affect older adults, people with disabilities, and those with serious illnesses who rely on Medicaid for long-term care.

Millions of Americans could lose their health insurance coverage, particularly in states that expanded Medicaid under the Affordable Care Act.

Tax Cuts for the Wealthy

• The plan aims to extend the 2017 Tax Cuts and Jobs Act (TCJA), which primarily benefits high-income earners.
  
• The top 1% of households would see a significant income boost of 3.9% from the TCJA extension1.
  
• Republicans argue that the tax cuts increased take-home pay and powered economic growth. Tickle-down economics anyone? The problem with that is that the wealthy find ways to keep the extra income, so only a little “trickle down.”

States with more generous Medicaid coverage will see larger cuts, while states that have been more restrictive with Medicaid will see smaller cuts.

Economic Consequences

• The proposed cuts could lead to a shortage of healthcare workers and services, forcing family members to stay home from work to care for loved ones.
  
• The destabilization of long-term care services could make it difficult for workers to achieve stable schedules and livable wages.
  
• Deficit-financed tax cuts in the current economic environment could put upward pressure on inflation and interest rates, potentially slowing growth.

Political Debate

• Republicans claim the tax cuts are necessary to prevent a massive tax hike and provide relief to families and businesses. But Democrats, like Rep. Pelosi, argue that the plan represents a massive transfer of wealth from average Americans to the ultra-wealthy.
  
  Extended postpartum coverage, currently offered by many states, could be at risk, potentially impacting maternal and infant health outcomes.
  
• President Trump has endorsed the House Republican budget plan, despite previously stating he wouldn’t allow large cuts to social welfare programs.

The proposed Medicaid cuts to fund tax extensions for the wealthy have sparked intense debate, with significant implications for healthcare access, income inequality, and the overall economy.

If this legislation passes and tens of millions suffer aa a result, look for Trump will blame it on Democrats – And, sadly, tens of millions will believe him.