BACKGROUND
- Last week, Senate Republicans passed a partisan budget resolution that would make drastic cuts to vital programs, including Medicare and Medicaid, to give giant tax breaks to wealthy corporations and the 1% – all at the expense of working Americans. This week, House Republicans are expected to follow suit.
- As they did with health care, Republicans are working in secret to write tax legislation because they know how damaging and unpopular their proposals will be to middle-class families.
- To make matters worse, the Republican tax cuts aren’t paid for. The Senate budget would increase the budget deficit by at least $1.5 trillion, forcing even deeper cuts to programs that help American families.
MEDICARE
- The Senate budget calls for nearly $500 billion in cuts to Medicare.
- In Iowa, 571,956 people who rely on Medicare are at risk.
- Medicare beneficiaries make up 18 percent of Iowa’s total population, including:
- Seniors: 86 percent of Medicare beneficiaries in Iowa are seniors.
- People with disabilities: 14 percent of Medicare beneficiaries in Iowa have a disability.
- Rural communities: Nearly one in four Medicare beneficiaries nationwide live in rural areas.
MEDICAID
- The Senate budget calls for more than $1 trillion in cuts to Medicaid – an even deeper cut than Republicans proposed in their health care repeal bills.
- In Iowa, 594, 900 people who rely on Medicaid are at risk.
- Medicaid beneficiaries make up 17 percent of Iowa’s total population, including:
- Adults: 1 in 8 nonelderly adults in Iowa.
- Children: 2 in 5 children in Iowa.
- Seniors: 1 in 2 nursing home residents in Iowa.
- People with disabilities: 2 in 5 people with disabilities in Iowa.
- Rural communities: Medicaid covers one in four nonelderly rural residents nationwide.
- Veterans: 19,000 veterans in Iowa rely on Medicaid services.
NUTRITION & INCOME SECURITY PROGRAMS
- The Senate budget calls for deep cuts to programs like the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, and Social Security.
- SNAP helps 381,000 of Iowa families and workers stay out of poverty and keep healthy food on the table.
- 69 percent of SNAP participants in Iowa are in families with children.
- 52 percent of SNAP participants in Iowa are in working families.
- 25 percent of SNAP participants in Iowa are in families with members who are seniors or have a disability.
- In 2016, SNAP benefits added $508 million to Iowa’s economy, because families spend their SNAP benefits at local grocery stores and other retailers.
- 86,829 Iowans rely on Social Security Disability Insurance, which workers pay into so they can support their families if they develop a severe disability.
TAX CUTS FOR WEALTHY
- The richest one percent of Iowa residents would receive 50.2 percent of the state’s total tax cuts in 2018. These households are projected to earn at least $440,800 next year and would see an average tax cut of $50,050 in 2018.
- In stark contrast, middle-class Iowans would only receive 6.8 percent of the state’s total tax cuts. These households would only get an average tax cut of $240 in 2018.
- Millionaires alone would get 42.6 percent of the state’s total tax cuts.
- 12.5 percent of Iowa households would face a tax hike if the GOP tax plan was in effect in 2018.
- SOURCE: ITEP State-by-State Impact of GOP tax plan and attached spreadsheet.
THE FUTURE
CUTS TO EDUCATION AND TRAINING: Nationwide, the Senate budget cuts close to $200 billion from services like Pell Grants and student loan assistance over the next decade.