Tariffs, Medicaid Cuts run neck and neck on muddy track
White House pushes for quick approval of ‘big, beautiful bill,’ but key hurdles remain – LA Times
One of many reasons R strategists want to whip their tax/spending bill through Congress ASAP is getting Medicaid cuts across the finish line before Trump’s tariffs push up prices. Higher tariffs, which function as a tax increase, may lower consumer spending and increase job loss. During recessions, governors typically push Congress to broaden Medicaid coverage and increase the federal share of Medicaid payments. So, if Trump’s bill stalls, economic circumstances might make it much harder to keep Medicaid cuts in play this summer. Particularly in the Senate, where many see the bill as a fiscal disaster.
Tariffs trigger price hikes: Shoes, clothing and toys to get more expensive this summer – USA Today
The Economic Effects of President Trump’s Tariffs – Penn Wharton Budget Model