A new report shows that low-income families lose their income, Republicans extend tax cuts and reduce Medicaid and snaps will win the wealthy.
Millions could lose compensation based on the GOP plan to reduce Medicaid according to the nonpartisan Congressional Budget Office
Republicans must cut more than $800 billion in programs. Experts say it’s not a way to cut them without affecting Medicaid.
WASHINGTON – Low-income families are losing hundreds, if not thousands, of dollars in income, according to a new analysis of Congress’s Republican Tax and Budget proposals, but wealthy families can earn even more.
An analysis from the Urban Institute, a Washington, DC-based think tank, estimates low-income families will “incur a significant loss in net profit,” and lawmakers assume that they will extend temporary provisions in the 2017 Trump Tax Cuts and Employment Act.
The report estimates that families with revised adjusted gross income of less than $10,000 will lose more than $2,700 (or a near 15% reduction in income). Families earning between $10,000 and $20,000 will have a decrease in income of over $800 or more, or about 4.4%, while families earning between $20,000 and $30,000 will have a decrease in income of $400 or about 1.5%.
In comparison, families with higher incomes will benefit from an extension of the 2017 tax cut, including an expanded child tax credit.
For example, the Institute estimated that families with incomes between $75,000 and $100,000 had net income of $1,220 or 1.8% after tax transfer income. That figure increases to $2,360 for families earning $100,000-$200,000 and $13,200 for families earning more than $200,000.
The report states that the analysis “excludes other unspecified tax changes that could be included in the settlement bill.”
These estimates are because Congressional Republicans are eliminating the details of the giant building to advance President Donald Trump’s legislative agenda. According to the Tax Foundation, one of Trump’s demands is to make his tax cuts permanent.
Medicaid, which provides health insurance to over 70 million low-income Americans, has also been a subject of debate among lawmakers. Even Democrats and some Republicans are opposed to potential cuts in the program.
R-Mo. Sen. Josh Hawley of the New York Times opinion article published May 12, argued that Congress should do everything to make health care for working families “better” affordable.
“If Congress cuts funds for Medicaid benefits, Missouri workers and their children will lose healthcare. And hospitals will be closed. That’s simple. And that pattern will be replicated in states across the country,” he wrote.
House Republicans announced late Sunday a proposal to enact work requirements and more frequent Medicaid eligibility checks.
Frank Paron, a New Jersey Democrat who joins the Energy and Commerce Committee, denounced the proposal in a statement.
“This is cut back on bones rather than trimming fat around the edge. The overwhelming majority of the bill’s savings will come from stealing health care from millions of Americans. Everywhere on the bill, it cuts people’s health care and uses that money to give billionaires tax-free.
Contributor: Riley Begin, USA Today
