Big Beautiful Bill Breakdown (Part IV)
I've been spending considerable time looking at the Big Beautiful Bill because there have been a significant number of comments criticizing the bill which aren't based on what it says.
I've been particularly concerned with allegations that the bill guts Medicare and/or Medicaid. It is, after all, the Democrats who soundly attacked and restricted Medicare Advantage when they were in the majority in Congress. As a result of their actions, my wife and I had to switch to an Advantage program which jacked up the price of expensive drugs to the point where we can't buy through the program. Instead, we hike to Mexico for my blood thinners, etc.
Democrats have lost the right to criticize the Big Beautiful Bill. Nor are their criticisms valid. Extra money pumped in by the bill helps rural hospitals. The only ones losing money on Medicaid are illegal aliens (who have never qualified on the federal level) and the able-bodied young men who are now (as in Bill Clinton's former plan) required to work part time in order to receive benefits.
The bill is not perfect. I, for example, wouldn't have given Hollywood tax credits for producing radio shows. But where the bill cuts subsidies, it generally does so for a reason. Bringing clean energy and energy saving payments to an early end this December is based upon the fact that government simply can't afford to continue subsidizing our houses and cars with borrowed money. If energy efficiency really makes things cheaper, the private sector should be able to come up with the capital.
The bill also discontinues renewable energy subsidies to our nation's enemies. I won't shed a tear that China and North Korea will lose a few bucks in the process. Those contributing money to said foreign entities will also come up short. The bill also does away with the ability of those with clean fuel subsidies to be able to transfer that fuel to other businesses and individuals (with a sunset in 2027).
The bill also puts a time limit on receiving credit for doing away with carbon dioxide, as well as preventing the transferral of carbon credits from one entity to another. It also prevents foreign actors from receiving money for reducing CO2 emissions. In addition, it cuts short government subsidies for producing clean hydrogen.
Another provision in the bill cuts short subsidies that are currently being received for manufacturing the components used to produce solar power, wind energy, etc. The private sector will in the future be responsible for producing components and cutting costs.
Under current law, taxpayers are allowed to write off from federal income tax up to $15,000 of state and local taxes paid. The Big Beautiful Bill doubles that amount. That will be of particular benefit to those living in high tax states such as California, Illinois, New York, and New Jersey.
The bill, however, also cuts the cap for high earning taxpayers. The more they earn, the less they are able to deduct from their federal taxes (with a ceiling ultimately reduced to only $5,000).
Once again, we find that those who have claimed the bill reduces taxes on billionaires are either lying or haven't read the bill (or both). The Big Beautiful Bill centers the biggest tax cuts on the middle class. Meanwhile, the 'uber rich' continue to pay far more than their fair share and pay a hefty percentage of the total federal tax bill. What the bill does do is strengthen opportunity zones to encourage the private sector to invest heavily in blighted areas in order to build infrastructure and create manufacturing jobs. Those new or revamped factories will and should produce wealth for those making the investment and taking the risk. Their primary purpose, however, is to give machinists and welders a leg up.
The bill really is beautiful.