Do you stand to benefit or lose?
Ok, this is my question: Are you benefiting more from the 2017 tax cuts, or will you lose more from the proposed 2019 budget cuts to Social Security, Medicare, health insurance, Medicaid, student financial aid, the environment, etc?
The tax cut bill passed in 2017 will add $1.9 trillion to the deficit. According to the nonpartisan Tax Policy Center “nearly three-quarters of the savings from the tax overhaul would go to those making more than $149,000. More than half the savings would go to people who earn more than $732,800. The tax breaks are even more tilted to the wealthy by the 10th year of the overhaul.” On the other hand, someone making $30,000 in 2018 will only save $180. from the tax cuts. In 2027 that benefit reduces to -$40.
Until the tax cuts, we were headed in the right direction on the deficit reduction, but now we can see that those actions (tax cuts) have created a skyrocketing budget/deficit problem. Where are we going to cut spending to balance the budget? Mitch McConnell (Senate majority leader) says it’s not the tax breaks that must be re-evaluated, it’s the “entitlement” programs (Social Security, Medicare, Medicaid) that must be gutted.
According to the Center on Budget and Policy Priorities “The House Republican budget plan for 2019, adopted on a party-line vote, would retain the costly tax cuts — primarily benefiting the well-off — while making deep cuts in health care and basic assistance for struggling families. The budget would cut $4.6 trillion from mandatory (or entitlement) programs over the decade, including:
$4 billion to cuts in Social Security
$2.1 trillion in cuts to health programs including:
$1.5 trillion to the Affordable Care Act (ACA) and Medicaid
$537 billion in Medicare cuts.
Raising Medicare’s eligibility age from 65 to 67, increase overall deductibles and premiums, and replace Medicare’s guarantee of coverage with a voucher
The ACA repeal would cause 23 million people to lose health coverage according to the CBO.
$923 billion in cuts to income security programs such as:
SNAP, formerly food stamps
Supplemental-Security-Income (SSI) for low-income aged, blind, or disabled individuals
Federal civil service pensions.
Eliminate/reduce food assistance for more than 2 million people.
Eliminate the “community eligibility” option, which enables schools in high-poverty areas to provide meals at no charge.
$231 billion in cuts to education and social service programs including
Complete repeal of mandatory funding for Pell Grants
Deep cuts in student loans
Funding for adult day programs for frail seniors and people with disabilities
Homeless assistance services
Childcare, and services for children who are abused, neglected, or at risk of mistreatment, among others.
$593 billion in cuts in other budget functions such as:
$4 billion from social security
Highway Trust Fund.
The Tax Policy Center (TPC) recently found that households with income below $86,100 would end up the net losers.
Do the research, and then check in with yourself, and decide whether you stand to benefit or lose. Vote!