‘An attack on working class families': Missouri Democrats decry proposed Medicaid cuts
U.S. Rep. Emanuel Cleaver speaks at Uptown Theater on Nov. 8, 2016 Kansas City (Photo by).
Missouri's Democratic members of Congress decried the proposed GOP cuts to Medicaid in a press briefing Wednesday, calling the move a handout to the rich that would harm the state's most vulnerable.
The U.S. House is debating a massive reconciliation package that, as written now, would slash roughly $800 billion from Medicaid and Affordable Care Act provisions, and $300 billion from the Supplemental Nutrition Assistance Program, or SNAP, according to the left-leaning Center on Budget and Policy Priorities.
U.S. Rep. Emanuel Cleaver, a Democrat who represents a district which includes Kansas City, said the proposed changes would have 'disastrous consequences' in Missouri, where Medicaid access can be a 'matter of life or death' for millions of enrollees.
'It will lead to sicker and more pain-filled communities. It will be a massive economic weight holding down Missouri families and small businesses alike, as more of our neighbors are stricken with increased medical debt,' Cleaver said.
The Congressional Budget Office found the House's plan would result in the lowest-earning households seeing resources decrease while the highest-earners gain.
One in five Missourians is on Medicaid, or over 1.2 million people. Missouri's Medicaid program covers 39% of all children in the state and pays for two-thirds of nursing home care.
Congressman Wesley Bell, a Democrat who represents the district including St. Louis, said Medicaid cuts would cause people to delay care.
'Medicaid serves as a stabilizing force for entire communities, and when it's cut, the consequences show up everywhere, from overcrowded ERs to delayed treatment and preventable illness,' Bell said. 'And when those folks don't have access to quality health care and preventative medicine, they go to the ER so we're going to pay for it one way or the other.'
The GOP budget includes adding work requirements and other changes to Medicaid that the Congressional Budget Office estimates would boot millions nationally from the rolls.
In Missouri, work requirements alone could kick over 90,000 people off the rolls, many of whom would be working or eligible for an exception but get caught up in red tape. The changes taken together, including proposed increased eligibility checks and limitations on state-levied provider taxes, could remove around 166,000 people from the rolls in Missouri, a KFF analysis found.
U.S. Sen. Josh Hawley has been a rare Republican voice against Medicaid cuts, calling them morally and politically wrong.
'Far be it for me to agree with Senator Hawley, but his point is well taken,' Bell said. 'This is a slap in the face. It is an attack on working class families.'
The bill is still being hashed out. It would also cut billions from the Supplemental Nutrition Assistance Program, or SNAP, which provides food aid to low-income people and families.
'We all know what's at stake,' Bell said. 'We all know the folks who are at stake are some of our most vulnerable folks, seniors, children, working families. So we hope and expect that our colleagues on the other side of the aisle do the right thing.'
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While the US-China truce framework is awaiting final word from US President Trump and Chinese President Xi Jinping, Lutnick added, "Both sides are really positive." The agreement is largely viewed as reestablishing the "handshake" that US and Chinese officials reached in Geneva last month, as details on a larger trade pact remain scant. Trump posted on social media this morning that the US has imposed 55% tariffs on China, a number that does not include any new tariffs but instead comprises some preexisting tariffs, Trump's fentanyl tariffs, and 10% "Liberation Day" tariffs. Lutnick touted that, as a result of the two-day talks, the US will gain access to rare earths and magnets, while the Chinese delegation sought to remove the US's export controls. He added that the trade deficit remains an ongoing issue, stating, "We're going to examine how China can do more business with us." May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Sign in to access your portfolio
Yahoo
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Consumer Reports urges Congress to drop electric vehicle tax proposal
By David Shepardson WASHINGTON (Reuters) -An influential consumer organization on Wednesday urged Republican lawmakers to drop a plan to impose a proposed $250 annual fee on electric cars to pay for road repairs. Consumer Reports, which also tests and rates new vehicles, noted that Republican Senator Bernie Moreno has called for boosting the proposed yearly fee to $500 for EVs and $250 for plug-in hybrids versus the tax and budget bill over the fee in the bill approved by the U.S. House in May. WHY IT'S IMPORTANT The fees would mean consumers would pay anywhere from three to seven times as much as owners of similar conventional gasoline vehicles in federal gas taxes, Consumer Reports said. The new fees could hit Tesla, GM other EV owners. KEY QUOTES Chris Harto, senior policy analyst at Consumer Reports said the EV fees were "punitive taxes designed to confiscate fuel savings from consumers who just want to save money for their families." CONTEXT Lawmakers in April dropped a $20 federal yearly registration fee on all vehicles starting in 2031 to fund road repairs. The U.S. House bill would end a $7,500 tax credit for new EVs for most automakers by Dec. 31, end a $4,000 used car EV tax credit, repeal vehicle emissions rules and kill an Energy Department loan program that supports the manufacture of green advanced technology vehicles. It would also phase out EV battery production tax credits in 2028. Ford said the bill's provision to eliminate EV battery production using Chinese technology threatens the automaker's projected $3 billion investment in a Marshall, Michigan, plant that is 60% complete and slated to employ 1,700 workers. On Thursday, President Donald Trump will sign three resolutions approved by lawmakers barring California's electric vehicle sales mandates and diesel engine rules, auto industry and House aides told Reuters.
