U.S. House budget strips trillions from everyday Americans while giving huge tax cuts to the wealthy

For Immediate Release
July 19, 2017

Contact:
Alex Rossman
arossman@mlpp.org
517.487.5436

Michigan’s congressional delegation should reject the House budget and instead work toward a bipartisan plan that matches our state’s needs and priorities

LANSING—The U.S. House Republicans’ new budget proposal being debated today would make it harder for millions of Michigan families to make ends meet, with drastic cuts to healthcare and key assistance programs. Despite attempts to distance themselves from President Donald Trump’s horrendous budget, House Republicans are advancing a budget that would strip trillions of dollars from middle class and working families while providing tax giveaways to the very wealthy and profitable corporations. The budget also creates a special fast-track process that would allow Republicans to force through massive cuts in public investments and big tax breaks without bipartisan support.

“The House Republican budget proposal has the same fatal flaws as President Trump’s budget plan. It attacks support programs and economic opportunity for millions of struggling Michiganians to pay for huge tax cuts for the wealthy,” said Karen Holcomb-Merrill, vice president for the Michigan League for Public Policy. “It would also shift massive costs and likely bring massive cuts to the Michigan budget at a time when our state is already struggling to invest in education, transportation and other services hardworking Michigan residents rely on.”

For Michigan, the budget plan could result in devastating cuts to programs that expand economic opportunity for Michiganians, including job training, education and economic development programs in cities and rural communities. The budget would fall hardest on Michigan residents struggling in today’s economy, with cuts to programs that provide income assistance to help families get back on their feet and help nearly 1.4 million people in Michigan—including 563,753 children—afford groceries through the Supplemental Nutrition Assistance Program (SNAP). As Republicans continue their efforts to sabotage healthcare access, the budget includes additional cuts to Medicaid, which helps 2.5 million people in Michigan, including more than 650,000 through the Healthy Michigan Plan.

And underlying the whole budget proposal is a set of false assumptions about economic growth to hide that the proposed tax cuts would dramatically increase deficits and shift ballooning costs to states when revenues fall short of projections.

“The people of Michigan deserve a responsible federal budget proposal from our members of Congress—one that is based on real economic conditions and addresses the real challenges faced by struggling families, not one that uses fuzzy math to justify big tax breaks,” said Holcomb-Merrill. “Instead of fast-tracking cuts that shortchange Michiganians and threaten our state budget and economy, Michigan Republican members of Congress should focus on creating a bipartisan plan that makes investments in programs that match our priorities.”

The League has been tracking the potential disastrous impact of the federal budget on Michigan residents since President Trump’s “skinny budget” came out in March. The League has asserted that the Trump budget is an attack on people living in poverty and the programs that help them provide for their families. The Trump budget would have harmful effects on food assistance, energy security and health, and other programs. While the House’s budget proposal is not an exact replica of the Trump budget, it is largely a continuation of these devastating cuts.

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.