Medicaid vs Tax Cuts: What’s Best for SC Families?

 

What’s in the Bill & Its Impacts

• This sweeping 940-page bill includes major tax cuts for the wealthy and corporations, funded in part by significant reductions to Medicaid, SNAP, and other social programs politico.com+15fastcompany.com+15nypost.com+15.

• The CBO estimates it would increase the federal deficit by $2.4–3.3 trillion over the next decade, and leave approximately 10–12 million people uninsured en.wikipedia.org+1nypost.com+1.

• It also cuts green energy tax credits, while adding border and defense spending—doing little for middle-class families cbsnews.com+15wsj.com+15wsj.com+15.

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🩺 Medicaid Cuts & “Ponzi Scheme” Warning

• The legislation proposes Medicaid funding reductions and stricter work/eligibility requirements, even for families nypost.com+2wsj.com+2nypost.com+2.

• States like South Carolina depend on federal Medicaid support—cuts would hurt working families and rural hospitals the most.

• Senator Graham (SC) has warned similar schemes (like the CLASS Act) have functioned like “Ponzi schemes,” delaying benefits until deficit issues arise govinfo.gov+7lgraham.senate.gov+7nypost.com+7.

• Removing Medicaid support undermines healthcare access and worsens poverty.

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✅ What REALLY Helps the People

1. Expand Medicaid & healthcare funding
Invest in Medicaid, healthcare access, and community clinics—preventative care saves lives and cuts long-term costs.

2. Targeted tax relief for working families
Boost the Child Tax Credit, offer earned income credits, and provide rebates for essential expenses, rather than blanket breaks for the ultra‑wealthy.

3. Strengthen social safety nets
Rather than gutting SNAP or Medicaid, protect these programs and enhance benefits for those in need, including rural and disaster-prone areas.

4. Audit & oversight protections
Ensure transparency so taxpayer money goes directly to essential services, not budget skims or corporate giveaways.

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🔍 Final Take

While tax reform can be beneficial, balancing the deficit by slashing Medicaid or food assistance is counterproductive—it hurts vulnerable households, raises healthcare costs, and destabilizes communities.

True economic strength comes from empowering the working class, not enabling the wealthy at their expense. South Carolina families need health coverage, job training, and living-wage supports—not budget cuts disguised as reform.

Why the One Big Beautiful Bill Isn’t Enough – How to Fix It With a Smarter, Balanced Alternative

 

What’s Wrong With the One Big Beautiful Bill

1. Massive Increase in Deficit
The CBO projects the bill will add $2.4 trillion in deficits over 2025–2034 – and rises by $3 trillion once interest is factored in cbo.gov+15americanactionforum.org+15whitehouse.gov+15. Proponents argue tariffs might offset this but experts call that approach unreliable .

2. Undermines Democracy & Rule of Law
A clause prevents federal courts enforcing contempt unless plaintiffs post bond—an attack on judicial checks and balances time.com+5reuters.com+5thedailybeast.com+5.

3. Centralizes Power Through AI Moratorium
It bans state-level AI regulation for 10 years, stripping states of rights and opening the door for Big Tech to exploit gaps time.com+7theverge.com+7foxnews.com+7.

4. Devastates Medicaid and Welfare
Tightening work requirements could cause up to 10.9 million Medicaid losses, especially harming vulnerable communities time.com+2apnews.com+2freepressokc.com+2.

5. Weakens Green Energy & Healthcare Policies
Repeal of climate incentives and ACA subsidies retracts progress on clean energy and health coverage apnews.com+1wsj.com+1.

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🟢 What’s Right About the Bill

• Pro-Business Tax Cuts: Permanently extends TCJA benefits, encourages investment through new credits for overtime, tips, and SALT refunds whitehouse.gov.

• Modernized Air Traffic Infrastructure: Backed by aviation industry as vital updates for ATC systems whitehouse.gov.

• Budget Oversight Measures: Promotes agency transparency and “efficiency initiatives”—though execution may vary.

• Support for Border Patrol & Immigration Enforcement: Widely endorsed by law enforcement and related groups news.com.au.

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🛠️ How to Improve Matters: Deficit, Democracy & Equity

1. Enforce Debt Caps: Limit deficit increases to <2% of GDP annually, with automatic triggers for adjustment if exceeded.

2. Judicial Integrity Clause: Restore courts’ ability to enforce injunctions without bond.

3. Instead of AI Ban → Strategic Oversight: Allow states to regulate safety/ethics, with a federal baseline to prevent abuses.

4. Safeguard Healthcare: Exempt Medicaid cuts tied to essential services and protect coverage for up to 5 million at-risk individuals.

5. Extend Green Energy Incentives: Phase out tax credits gradually over a set period, not abruptly cut.

6. Use Progressive Tax Adjustments: Retain core business incentives but phase out unfair loopholes or add a modest VAT to cover long-term costs.

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✅ A Smarter Alternative Bill: The Balanced Renewal Act

1. Deficit Discipline:

   • Cap deficits at 2% of GDP; all excess spending must be offset by tax or spending adjustments.

2. Balanced Tax System:

   • Tiered corporate tax (5–18%), preserve TCJA for small bus.

   • Payroll tax bolstering via broadened base.

3. Education & Workforce Boost:

   • Student debt caps, Pell eligibility for certificates, high school apprenticeships funded publicly.

4. Healthcare & Safety Net Reform:

   • No Medicaid work penalties, preserve coverage for vulnerable groups, invest in community healthcare and telemedicine.

5. AI & Governance Safeguards:

   • AI oversight doctrine with federal baseline, state flexibility on ethics/regulation.

Summary: This structured approach ensures deficit control, protects democracy, sustains infrastructure, empowers states, and promotes innovation—without risking fiscal or institutional collapse.

Referecnes:

Deficit Impact

• CBO projects the One Big Beautiful Bill will raise deficits by $2.4T over 2025–2034 (and nearly $3T including interest) apnews.com+15apnews.com+15cbo.gov+15.

• Factcheck/KFF estimate 10.9M Americans could lose Medicaid abcnews.go.com+14kff.org+14barrons.com+14.

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🏛 Judicial Power Concerns

• The bill restricts courts from enforcing contempt unless plaintiffs post bonds — a threat to checks and balances .

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🤖 AI State Regulation Ban

• Establishes a 10-year moratorium on state-level AI regulations; big concerns about limiting protections apnews.com+15theverge.com+15washingtonpost.com+15.

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⛑ Medicaid and Healthcare Cuts

• Medicaid work requirements and funding cuts could leave up to 10.9M uninsured wsj.com+15apnews.com+15apnews.com+15.

• SNAP cuts estimated at $230B over 10 years abcnews.go.com+1statnews.com+1.

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🌍 Green Energy Rollbacks

• Repeals key Inflation Reduction Act green initiatives apnews.com+5apnews.com+5arxiv.org+5.

• Moody’s criticized the deficit impact and loss of environmental policy crfb.org.

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✅ Pro-Business Tax Measures

• Extends TCJA benefits and adds credits for overtime, tips, high SALT, and MAGA accounts en.wikipedia.org.

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✈ Air Traffic & Infrastructure Funding

• BACKED by industry for modernization of ATC systems theguardian.com+1techpolicy.press+1.

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🔍 Transparency and Oversight

• The bill mandates monthly agency spending transparency and oversight—from efficiency to watchdog provisions knoxvillewolf.com+15en.wikipedia.org+15factcheck.org+15.

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🛠 Improvements and Alternatives

The suggested changes and the “Balanced Renewal Act” incorporate best practices — debt caps, progressive taxation, preservation of healthcare and environment, and smart transparency — based on:

• Budget rules (e.g. Switzerland, Germany) concepts .

• AI regulation models (EU, decentralized U.S. states) en.wikipedia.org+10arxiv.org+10washingtontimes.com+10.

• Historical reform lessons and balanced fiscal frameworks.