Criticism of Controversial Budget Passed by US Congress
The budget approved by the United States Congress has sparked criticism due to its contentious measures, including cuts to the healthcare system (Medicaid) and strengthening of anti-immigration policies, alongside tax cuts.
Key Critics and Their Concerns
Heidi Shierholz, the president of the Economic Policy Institute (EPI), described the budget as an “astonishing upward redistribution of income.”
“The tax breaks for the wealthy are so massive – over $100,000 annually for the top 0.1%– that even after cutting aid to the most vulnerable, this bill will still add nearly $4 trillion to the national debt,” Shierholz stated.
Liz Shuler, president of the AFL-CIO, highlighted on the weekend that President Donald Trump’s tax proposal would strip healthcare coverage from 17 million people to fund tax breaks for the wealthy, marking “the largest transfer of funds from working-class Americans to the ultra-rich.”
Larry Summers, former US Treasury Secretary, also raised concerns about Trump’s “One Big Beautiful Bill Act.” He warned that it would cause more inflation and increase the risk of recession due to reduced subsidies for electricity and higher hospital costs.
“There isn’t an economist anywhere, without a strong political agenda, who would say this legislation is good for the economy,” Summers stated during an interview on ABC’s This Week.
Trump Celebrates the Passage of His Budget Bill
Trump signed his budget bill on Friday, amidst a Fourth of July celebration at the White House featuring a flyover by B-2 bombers used in attacks on Iran.
“It’s a good time,” Trump said as he signed the document, surrounded by Republican lawmakers who lined up to support his “Grand and Beautiful” bill.
“We are entering the golden age of America,” he asserted, despite deep concerns within his own party and among voters about the increasing national debt and dismantling of healthcare and social security systems.
Key Questions and Answers
- What is the main issue with Trump’s budget bill? Critics argue that it disproportionately benefits the wealthy through substantial tax cuts while simultaneously cutting essential services like healthcare for millions of Americans.
- Who are the key critics and what are their concerns?
- Heidi Shierholz (EPI President): Concerned about the massive upward redistribution of income, with tax breaks exceeding $100,000 annually for the top 0.1% while still adding nearly $4 trillion to the national debt.
- Liz Shuler (AFL-CIO President): Points out that the tax proposal would strip healthcare coverage from 17 million people to fund tax breaks for the wealthy, representing a significant transfer of funds from working-class Americans to the ultra-rich.
- Larry Summers (former US Treasury Secretary): Warns of increased inflation and recession risks due to reduced subsidies for electricity and higher hospital costs.
- How has Trump responded to the criticism? Trump signed his budget bill, asserting that it marks “the golden age of America,” despite concerns about the national debt and dismantling of crucial systems like healthcare and social security.
