Senate Republicans, with Vice President Vance casting a tie-breaking vote, have passed President Trump's budget bill. The bill aims to reach the president's desk by July 4 and includes significant cuts to Medicaid and the SNAP food assistance program. It also proposes an estimated $3 trillion increase in the national debt.
Experts from Northwestern University are offering insights into various aspects of the bill. Daniel Galvin, a political scientist at Northwestern, commented on the proposal to eliminate taxes on tips: "In the short term, eliminating taxes on tips would boost low-wage workers’ take-home pay. In the long term, however, such a policy could further entrench tip-based compensation models." He noted that tipped workers face issues like wage theft and payroll fraud and highlighted potential negative impacts on federal tax revenue and safety net programs.
Laurel Harbridge-Yong, another political scientist at Northwestern, discussed challenges related to partisanship and compromise: "Legislators increasingly worry that breaking with the party base will draw a primary challenger," she said. This concern makes it difficult for legislators to break from party lines even when constituents oppose legislation.
Health economist Lindsay Allen addressed concerns about cuts to Medicaid and SNAP: "Healthy, well-fed citizens are our strongest workforce asset," she stated. Allen argued that removing these benefits could harm economic growth by affecting workforce reliability and community resilience.
Economist Mark Witte is available for comments on changes to federal tax revenue and energy tax credits.