John Thune, the leader of the US Senate, Rs. D., talks to Capitol journalists when lawmakers work One Big Beautiful Bill Act in 2025. June 25th Washington (Joe Raedle/Getty Image Photo).
President Donald Trump’s One Big Beautiful Bill Act is sold for promises that he will save money from Ohio’s population. But reducing its safety network will cost Ohio and other states far more than it will save, according to a report published last week.
Deep reduction of healthcare under Medicaid and support for food under the Additional Assistance Nutrition Program or Snap not only damaged the most vulnerable, Report Commonwealth Foundation and George Washington University. It would also destroy jobs, suppress the state’s economy and reduce tax revenue that state and local authorities have to operate.
A bill that faces the Republicans on July 4th. By the passage term, until 2029. The United States destroys 1.2 million jobs and reduces the state’s economy by $ 154 billion, the analysis said.
Some Ohio leaders said the changes offered by SNAP to conquer the already overloaded system And increase the hunger of children, the elderly, the disabled and the poor. They say Medicaid’s incisions it would cost 770,000, mostly working Ohio inhabitants, their health care;
A report from the Commonwealth Fund-George Washington University states that the explosion radius of the account is much wider.
According to him, Ohio would lose $ 4.5 billion federal funding. The state’s GDP or economic production would be reduced by $ 5.2 billion. He said state and local tax revenue would be reduced by $ 3.66 billion by 2029.
The loss of Ohio’s jobs, about half of their health sector, would be 44,700 or 0.8% of the labor force, he added.
Short and Congress Republicans justify reductions as they will reduce the Federal Medicaid and will record $ 1.2 trillion in 10 years. However, this does not take into account direct and indirect damage caused to the wider economy.
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“Our study reveals another, less discussed consequence of budget reduction: damage to the state economy and the loss of hundreds of billions of dollars, amounts that exceed any federal savings,” the Commonwealth Fund George Washington University report said. “More than a million people will lose their jobs, especially in the health care sector. Hospitals, clinics and nursing homes will be closed. Many are in rural and low -income communities. It is necessary to compensate for billions of dollars in federal funding, as state and local government states will have to consider reducing other state services, such as education or infrastructure. And local and local states will have to consider reducing other public services, such as education or infrastructure.
Meanwhile, the economic justification of the short tax reduction is questionable.
They are named the very richest Americans. Out of 4.6 trillion USD The tax reduction over 10 years of Pennsylvania University of Pennsylvania’s Wharton School estimates that 70% of the benefit will be spent. ”10% of income distribution”.
Analysis of the University of Washington, the Commonwealth Foundation of the Commonwealth Foundation, said that a reduction in the Republican bill would allow money from poor families’ pockets, while it involves it in the wealthy, and when he would go into debt.
“By reducing safety network programs, the home budget expense reduces resources for low-income households (at least 10% of earners) on average 1,600,” he said. “At the same time, the reduction of the draft law increases resources for high income for households (the highest 10% of earners) $ 12,000. Despite the reduction of expenditure, the federal deficit of the bill would increase by $ 3 trillion, including about $ 500 billion at higher interest costs.”
Reduction of rich taxes has long been sold for promises that they are the juice of the economy and that everyone will be useful. However, there is not much evidence to support this.
For example, 2017 Trump Tax Reduction was not even half the size of those foreseen under one large beautiful law. Nevertheless, they Added 1 trillion USD up to $ 2 trillion to deficitEvaluations of the Tax Policy Center.
Trump said the income tax reduction, which was part of the package, would increase $ 4,000 to the average household income. However, families with families earning $ 114,000 a year or less have been found to have led to a huge increase in enforcement salaries, the Budget and Policy Priority Center said.
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