The Morally Repugnant, Fiscally Insane, Anti-Growth Budget Bill

The Budget

The New York Times reported that the highly respected Penn Wharton Budget Model “found that many Americans who make less than $51,000 a year would see their after-tax income fall as a result of the Republican proposal beginning in 2026.”

People making between about $51,000 and $17,000 could lose about $700 on average in after-tax income beginning in 2026, according to the analysis, when factoring in both wages and federal aid. 

That reduction would worsen over the next eight years. 

People reporting less than $17,000 in income would see a reduction closer to $1,000, on average, also increasing over time, a shortfall that underscores their reliance on federal benefits. 

By contrast, the top 0.1 percent, including those with incomes over $4.3 million, would gain on average more than $389,000 in after-tax income in 2026, the data show.

Refusing to extend Affordable Care Act subsidies--which make health insurance plans more affordable for middle class families.  If Congress fails to act to renew the Affordable Care Act enhanced premium tax credits this year, the Congressional Budget Office says over 5 million Americans could lose their health care.

Impact of Medicaid cuts

USA Today reports:

• Families of four making as little as $35,365 would see new costs for going to the doctor, 

• some unemployed people would become ineligible for Medicaid, 

• some seniors would lose access to long-term care coverage, and 

• states would lose a portion of federal dollars that help them cover those just above the poverty line. 

• The bill would also bar Medicaid from funding services at clinics that also perform abortions, such as Planned Parenthood.

Overall Damage Impact

The Wall Street Journal sums up the damage:

The current proposal would increase projected budget deficits by nearly $3 trillion through 2034, locking in tax cuts and spending increases that outweigh reductions in spending on Medicaid and nutrition assistance. 

While Republicans, who have vowed to reduce red ink, say higher economic growth will fill the gap, budget analysts across the political spectrum have panned the Republican plan, warning that it worsens the U.S. fiscal picture.