Republicans Want to Slash Medicaid Funding to Compensate for Trump Tax Cuts

trump tax cuts

Republicans’ Tax Plan a Double-Edged Sword for Americans

For most Americans, the sound of “tax cuts” is music to the ears. Based on a cursory look, it does seem like we would have to pay less to the government and get to keep more from our respective incomes. However, the math behind the tax cuts doesn’t work out so well for the government. The government must find a way to compensate for the loss of tax revenue with President Donald Trump’s tax cuts.

In the present scenario, the Republicans may have found a way that could be more harmful than beneficial to the average American.

The Trump administration is proposing to slash funding to Medicaid and Medicare, among other spending cuts, to pay for the tax cuts—a proposition that will only make things worse for poor Americans.


According to the budget being proposed by the Republicans, government spending would be slashed by $5.0 trillion over the period of the next 10 years. The government justifies cutting its spending to balance the government’s budget scale, which is expected to tip on the deficit side after the tax cuts go into effect.

About $1.0 trillion of the proposed federal spending cuts would come from the Medicaid program—under which mostly low-income Americans are afforded healthcare insurance. Another half-a-trillion would be slashed from the Medicare program, which primarily covers the healthcare costs of elderly Americans. Likewise, housing assistance programs and food stamps will also face some of the federal spending cuts.

All in all, it wouldn’t be wrong to say that the middle-class and lower-middle-class Americans are expected to bear the brunt of the spending cuts.

Trump Tax Cuts No Favor to Middle Class

On the contrary, despite the Republicans calling President Donald Trump’s tax reforms a relief for the middle class, the bitter reality is that the proposed tax cuts are believed to disproportionately favor the rich over middle-class Americans. With big tax cuts being awarded to business- and estate-owners, this belief may not be altogether wrong after all.

At the same time, the majority of economists also believe that the tax cuts would ultimately widen the U.S. budget deficit, as the tax reforms proposal is missing critical details on how the government would counter the loss of tax revenue.

Having weighed the pros and cons of the tax cuts, it does seem like the Americans are now dealing with a double-edged sword.





Categories: Government Cutbacks, News