Proposed federal tax cuts threaten children’s health
When you look past the dollars and cents of any state or federal budget deal, what you really see is a reflection of our priorities. A commentary on what – and who – we care about as a state. In North Carolina, our priorities are reflected in our strong sense of community and our commitment to children. We look out for our neighbors here, especially those who are struggling through hard times and need extra help. And that means protecting the programs that care for our most vulnerable residents, such as children, people with disabilities and the elderly.
In recent weeks, the U.S. House and Senate have unveiled new tax bills and budget proposals that don’t reflect these values. They will do more for the wealthiest taxpayers and little to ensure that children from low- and moderate-income families have the support they need to be successful. Both the House and Senate tax bills set the stage for deep cuts to Medicaid and other vital programs down the line.
Both bills are estimated to add $1.5 trillion to our nation’s deficit. That’s trillion with a ‘T’ (otherwise known as $1,500 billion). $1.5 trillion is enough to employ 4.4 million unemployed Americans with jobs that pay $15-an-hour for nearly a decade. It’s enough to pay for a child care program for all kids in the U.S. Instead of limiting people’s ability to pay down their student loans, we could actually wipe out all current student loan debt in America.
But instead, $1.5 trillion is the current price tag for a tax plan that cuts taxes for the wealthiest Americans. As lawmakers look for ways to make up that gap in the future, experts agree there is no way to pay down such a large deficit without cutting our nation’s safety net programs. And that almost certainly means billions in cuts to Medicaid, which covers more than one million children in North Carolina, in addition to hundreds of thousands of seniors and people with disabilities.
Across the state, nearly half of North Carolina’s children with disabilities or other special health care needs, including congenital heart disease and type 1 diabetes, are covered by Medicaid. Eighty-one percent of North Carolina children living in poverty are protected by Medicaid. Medicaid pays for school programs that serve children with special needs, and allows our seniors to stay in their homes and receive treatment.
Medicaid is also crucial to our efforts to address the opioid crisis, which claims an average of three lives per day in North Carolina and is sending record numbers of children into foster care. Medicaid provides substance abuse treatment for qualifying parents and mental health services that can help prevent addiction in the first place. Furthermore, all children in foster care receive health insurance through Medicaid.
Congress has given us a very clear indication that drastic cuts to Medicaid form the basis of the plan to cover the deficit created by this proposed tax cut. Throughout the year, Congress tried and failed to cut over $800 billion from Medicaid. Adding $1.5 trillion to the deficit leaves Congress little choice but to justify major cuts down the line – which means paying for tax cuts on the backs of kids, seniors and people with disabilities. Perhaps the greatest irony is that Congress can so easily devise a trillion-dollar tax bill, but can’t seem to fund the Children’s Health Insurance Program that expired more than a month ago and would cost less than one-half of 1 percent of the federal budget.
This tax bill is not who we are – not as North Carolinians, not as Americans. It doesn’t take care of our neighbors and it doesn’t take care of our children. We call on Sens. Burr and Tillis, and our entire congressional delegation, to do better. Our country, and our character, depends on it.
Michelle Hughes is the executive director of NC Child, a statewide child advocacy organization.
This story was originally published November 21, 2017 at 1:10 PM with the headline "Proposed federal tax cuts threaten children’s health."