It has been proposed that the GOP tax bill could trigger automatic cuts north of $135 billion in mandatory spending in 2018, with $25 billion of it being in Medicare cuts if Congress doesn’t find an alternative route to offset its deficit increases.
The tax bill would add an estimated $1.5 trillion to the deficit over the next ten years, with congressional rules demanding that the White House Office of Management and Budget – or the OMB –slash mandatory spending if the deficit surpasses a certain point.
What Does This Mean To You?
The Chicago Tribune has reported that many of our underprivileged and at-risk communities will be most affected by these Medicare and Medicaid cuts. Medicaid is enacted by the federal government to aid impoverished communities to receive quality healthcare, with the program catering to children, pregnant women, and those living under the federal poverty level.
The GOP tax bill takes aim at the 11 million people who have gained health coverage under the Medicaid provisions authorized by the Affordable Care Act. Most of these Americans will lose their coverage, with seniors and their families who count on Medicaid to help fund long-term care feeling the brunt of it.
Medicare can only be cut a maximum of 4% through the pay-go rules – equal to $25 billion. Republicans are moving quickly and with stealth to pass the bill before the end of the year. Many Democrats argue that cutting Medicare can affect other programs like Social Security.
The fiscal hawks of the Republican Party are hellbent in ensuring that this bill passes through.
BREAKING: CBO: Tax bill will automatically cut Medicare by $25 billion per year almost immediately. pic.twitter.com/8NKZd5tPt0
— Topher Spiro (@TopherSpiro) November 14, 2017
Featured image via Flickr.