A massive tax cut/Medicaid reform bill that cleared the U.S. House this month has sparked a messaging war at all levels of politics between Republicans and Democrats attempting to frame the issues for the public.
For Republicans, the “One Big Beautiful Bill” makes tax cuts from President Donald Trump’s first term permanent, but for Democrats, the changes to how Medicaid is administered mean “people will die.”
All the while, both sides are sidestepping the significant debt that comes with the plan, which still needs U.S. Senate approval to get to Trump’s desk.
U.S. Reps. Debbie Dingell (D-Dearborn), Haley Stevens (D-Birmingham) and Gov. Gretchen Whitmer took aim at the cuts the bill would administer to Medicaid and the Supplemental Nutrition Assistance Program (SNAP). The Congressional Budget Office shows Medicaid spending would be reduced by $700 billion and SNAP spending would be reduced by about $276 billion over 10 years.
“People will die, children will go hungry, and working Americans will continue to struggle to make ends meet, all so Republicans can give another tax break to billionaires,” Dingell said in a press release.
State House Democrats also held a press conference railing against the passage of the federal reconciliation bill with Reps. Ranjeev Puri (D-Canton), Stephanie A. Young (D-Detroit) and Jennifer Conlin (D-Ann Arbor) talking about what the bill’s passage would mean for them in Lansing.
“You don’t want to say these things out loud, and it feels like a horror film,” Conlin said.
Whitmer did an interview with CNN where she again put the onus on U.S. Rep. John James (R-Shelby Township), who is running for governor, and repeated many of the talking points from the Democratic Governors Association press conference.
After the passage, however, she stepped up the rhetoric to match Dingell.
“This is going to have profound ramifications, and people will die as a result of this. We’ll see health systems not survive if Medicaid gets cut in this dramatic fashion, and that’s healthcare for everyone that gets impacted,” she said.
Whitmer said the state didn’t have the funds to backfill what would be needed to make up for the spending reductions caused by the work requirements and other changes present in the bill.
The work requirements that are expected to reduce Medicaid are not slated to take effect until Jan. 1, 2028, as H.R. 1 stands right now. The bill is still required to pass through the U.S. Senate.
SNAP benefits would also not be impacted until 2028, and a 5 percent benefit cost would need to be paid by Michigan. The administrative cost for the state would also be raised to 75 percent, which is a 25 percent increase. The SNAP work requirements would be raised from age 54 to 64 and the children exemption would be lowered from age 18 to 7.
Republican U.S. Reps. John Moolenaar (R-Caledonia), Tim Walberg (R-Tipton) and Tom Barrett (R-Charlotte) took a decidedly different tone, playing up the tax cuts that are included in bill. The federal tax cuts would raise the standard deductible for tax filers to $16,000 and joint filers to $32,000.
“Not only does H.R. 1 deliver the largest tax cut in history for the working class and small businesses, it eliminates taxes on tips and overtime pay, makes American-made cars built in Michigan more affordable, provides significant relief for seniors collecting Social Security and boosts the child tax credit to support families across the country,” Barrett said.
Other tax cuts include the deduction for state and local taxes to $40,000 for individuals making up to $500,000 and a $500 increase to the child tax credit. Estate tax exemptions rise to $15 million.
The bill would also see research and development costs and the cost of machinery being deducted from business taxes.
It would also give President Donald Trump a win on a campaign promise to eliminate taxes on tips and overtime pay. It makes a corporate tax cut permanent that was implemented by Trump during his first term.
“The One Big Beautiful Bill Act will prevent the average taxpayer in Michigan’s 5th District from seeing a 27 percent tax hike, make significant investments in our communities and implement critical polices like no tax on tips or overtime pay to support American workers,” Walberg said.
Other than the permanent tax cut, the tax breaks were scheduled to expire in 2028, according to language in the bill.
The Republicans also pushed back on the Democrats’ Medicaid messaging, saying the spending reductions would be primarily done through the elimination of “waste, fraud and abuse.”
“This legislation also strengthens the integrity of Medicaid, preserving it for mothers, children, people with disabilities and seniors who need it most – not illegal immigrants and able-bodied adults who choose not to work,” Barrett said. He said Democrats were trying to “scare people into believing the sky is falling.”
In both the Democrat and Republican messaging, neither mentioned the federal deficit and the impact the One Big Beautiful Bill Act would have. According to the Congressional Budget Office, the entire package of tax cuts and spending would increase the deficit by $2.8 trillion.
This story courtesy of MIRS, a Lansing-based news and information service.