Health Care for the Poor Sacrificed for Tax Cuts for the Affluent

Health Care for the Poor Sacrificed for Tax Cuts for the Affluent

August 30, 2005

Congress must determine next week how to cut approximately $35 billion from mandatory spending programs through an annual process called budget reconciliation. The reason for the drastic slashing of critical social spending? President Bush’s massive tax cuts for the rich have failed to jumpstart our economy, and in turn, have produced record deficits that middle and working class Americans must now pay off. As vital programs such as Medicaid, Medicare, food stamps, student loans, and other forms of government assistance sit on the chopping block, President Bush continues to push for permanent extension of his costly and inequitable tax cuts. The budget calls for $70 billion in additional tax cuts, and a pending repeal of the estate tax would cost about $750 billion over the first 10 years of enactment. What’s at stake?

• $10 billion in health care spending for the poor could be sacrificed for the president’s tax cuts. As stipulated by the budget reconciliation instructions, Senate Finance Committee Chairman Chuck Grassley will be forced to find as much as $10 billion in savings primarily by cutting Medicaid services. Because the Finance Committee is not required to cut one certain program to find the $10 billion in savings, it is possible that other entitlement programs under the committee's jurisdiction, such as Medicare and welfare programs, may also fall under the budget ax. States such as Michigan, which stands to lose approximately $300 million if the Medicaid cuts are enacted, are preparing to "turn away tens of thousands of its neediest citizens" or raise taxes or cut other vital state services, according to The Detroit News.

• Student loans, food stamps and other social protections are also on the block. As America struggles to keep up with other nations in a rapidly changing global economy, Senate aides are currently crafting legislation to slash $7 billion from the student loan program. The most vulnerable Americans—the sick, poor and elderly—potentially face a $600 million cut in food stamps with other welfare programs also being evaluated for cuts.

• America will not succeed economically unless it is willing to put the public interest above narrow individualism and greed. It is inexcusable to pursue fiscally irresponsible and self-interested tax cuts for the few above the needs of the larger public. Health care, education, and provisions for the vulnerable are not handouts or wasted money. They are necessary social investments that improve our economy and uphold our basic beliefs in justice and opportunity for all. Unfortunately, our nation’s right-wing leaders believe taking care of the wealthy will somehow take care of us all – a dubious calculation to make with America facing long term economic challenges at home and abroad.