Healthcare for Michigan Medicaid Enrollees, Medicare Recipients Jeopardized, so that Top 1% Can Get $76,560 Tax Cut. Meanwhile 13% of Middle-Class Michigan Households Will Get a Tax INCREASE.
The U.S. Senate is expected to vote on a budget resolution that will set the framework for how much federal spending and taxes will be cut. The proposal would allow for a $1.5 trillion tax cut mostly benefiting the wealthy and corporations, which is not paid for by closing loopholes, meaning the costs will be added to the deficit.The ballooning of the deficit will jeopardize funding for Social Security, Medicare, Medicaid, education,and other services that America’s families rely on. Meanwhile, many middle-class families will see a tax increase under the plan.
This threat to the basic living standards of America’s working families is not abstract. The Senate budget proposes $5.8 trillion in cuts to federal spending, including nearly $500 billion from Medicare and $1.3 trillion from Medicaid and other healthcare programs. Another $650 billion may be cut from income security programs, such as Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families. Michigan’s working families and seniors will be particularly harmed, and Senators Peters and Stabenow should vote NO to protect their constituents.
See data below for the effects on Michigan’s families.
A panel of officials and constituents gathered Monday at Community Alliance, a non-profit agency in Ypsilanti, Michigan, to discuss the potential changes to Medicaid.
“Seniors need help sometimes with just making sure they’re eating or getting dressed or bathing. It’s dignity.” said Rep. Debbie Dingell. “It’s about the dignity of every human being, and as you get older, you can still be a very important contributing member of our community, We need their wisdom, we need their contributions. They need a little help. We shouldn’t destitute somebody because they’re older or not be there for them. We need to understand what Medicaid has become.”
“The Affordable Care Act’s Medicaid expansion helped fund the Healthy Michigan Plan, and if the ACA is replaced, the Healthy Michigan Plan will no longer be sustainable.” said former state Rep. John Freeman. “When you make a significant social change like we did with the ACA, you have to expect backlash, and that’s what’s happened. So if we think that this is important – and we all do – then we have to go out there and protect what we want.”
TAX CUTS FOR THE RICHEST 1% IN MICHIGAN FROM THE TRUMP-GOP TAX PLAN
- The richest 1% will get 62% of the total tax cut in 2018.
- Their tax cut will be $76,560 in 2018, on average.
- There are 46,900 Michigan taxpayers in the richest 1%.
- 14% of households would get a $1,590 tax increase, on average, in 2018.
- 13% of households making $42,100 to $67,000 would get a $780 tax increase, on average.
- 14% of households making $67,000 to $108,300 would get a $1,360 tax increase, on average.
EFFECT ON MICHIGAN OF REPEALING THE STATE AND LOCAL TAX DEDUCTION (SALT)
The Trump-GOP tax plan repeals the SALT deduction. Taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. SALT helps taxpayers, many of them middle-class, avoid being double taxed at the federal level.
- Repealing SALT would raise taxes on 22% of Michigan taxpayers. Their tax increase would be $1,814 a year, on average.
- For state and county level data on the number of households claiming the SALT deduction, the percentage that are middle-income and the average SALT deduction (see this report from the National Association of Counties http://explorer.naco.org).
- For congressional district-level data on the percentage of taxpayers claiming the SALT
deduction and the average deduction claimed (see this report from the Government Finance Officers Association).
EFFECT ON MICHIGAN OF REPEALING THE FEDERAL ESTATE TAX
The Trump-GOP tax plan eliminates estate and gift taxes, losing $240 billion over 10 years and boosting the inheritances of the very wealthy. The federal estate tax is paid only by estates worth at least $5.5 million, just 2 out of 1,000 estates, or only 5,500 estates in all of 2017.
- Only 100 Michigan estates will be subject to the estate tax in 2018.
- The estate tax will raise $482 million in Michigan in 2018—enough to pay for nutrition benefits for 329,477 people.
To pay for massive tax cuts to the wealthy and corporations, President Trump and GOP leaders have proposed deep cuts to services that working families rely on. The Senate budget resolution would cut over 10 years:
- $1.3 trillion from Medicaid and other health care programs
- $470 billion from Medicare
- $650 billion from income security programs, which may include cuts to the Supplemental Nutrition Assistance Program (SNAP, or food stamps), Supplemental Security Income (SSI) for disabled individuals, and tax credits for working families.
- Also at risk are Pell Grants and other financial aid to help students afford college.
- 34% of the state’s general revenues come from the federal government.
- Around 2,358,300 people are covered through Medicaid and the Children’s Health Insurance Program (CHIP)
- 396,600 people with disabilities
- 1,123,300 children
- 159,600 seniors
- 72,000 veterans
- 1,981,400 people are enrolled in Medicare, including original Medicare and Medicare Advantage plans
- 1,383,000 people rely on SNAP food benefits [Source: U.S. Department of Agriculture(Fiscal Year 2017 monthly average)]
- 223,800 college students benefit from Pell Grants [Source: U.S. Department of Education, Table 21]