The Billionaire Boondoggle
President Trump’s nasty budget bill has been signed into law, and it’s projected to be one of the most damaging pieces of legislation for the working class in decades.
We’re going to type it until our keyboards break– MAGA Republicans cut SNAP and Medicaid in order to give massive tax breaks to the rich. Millions of working class people will lose their health care. Millions more will struggle to put food on the table. Everyday people will see their wages stagnate, while billionaires will accumulate more and more wealth. They are raising costs for so many of us, only to line the pockets of the wealthiest few.
We’ll cover the impacts on health care, food access, and education very soon. But today, let’s take a look at some of the more subtle provisions hidden in this bill– the concealed cost increases for working families, the bizarre incentives for obscure projects, the billionaire boondoggles that feel like a total waste of money. These provisions are wide-ranging, but you’ll see a common theme: Republicans have prioritized billionaires over everyday people and working families.
Your electric bill could be 18% higher
MAGA Republicans have eliminated tax credits for clean energy projects, a move that could spike your electric bill. “There’s no doubt this bill is going to increase electricity prices all over the country,” one expert said. “In states like North Carolina, folks can expect their bills to go up about 18%.”
According to Energy Innovation, a non-partisan think tank, the average North Carolina household will see its power bill increase by about $700 per year. They also examined the economic impact of Trump’s bill for the whole country, calculating the household energy cost increases and population-weighted job losses for every state, and North Carolina turned out to be one of the five biggest losers as a result of the MAGA budget bill.
Still eligible for Medicaid? Your copays will be higher
Millions of people are expected to lose their health insurance as a result of Republicans’ cuts to Medicaid, including hundreds of thousands of North Carolinians. But even if you’re able to maintain your coverage, you should still expect higher medical costs.
Trump’s legislation requires states that have expanded Medicaid, including North Carolina, to charge enrollees up to $35 for some services. Medicaid enrollees often don’t pay anything when seeking medical services because studies have shown charging even small copayments prompts low-income people to forgo needed care. That’s about to change.
Meanwhile, there’s going to be no tax on oil drillers
The bill includes an exemption for domestic oil and gas companies from a corporate tax, as long as they have “intangible drilling and development costs.” Oil companies lobbied hard for this, and the provision was inserted by a Republican from Oklahoma. Most of the companies that will benefit from the tax break are also from Oklahoma. What a coincidence!
To the moon!!! Incentives to build spaceports
Trump’s bill would allow municipalities to issue tax-exempt bonds to build spaceports. Traditionally, this type of tax incentive is only available to those building airports. Apparently, a company called Space Florida lobbied heavily for this provision. Who does Space Florida work closely with? Blue Origin– Jeff Bezos’ space tech company.
No tax on gun silencers
For nearly 100 years, there’s been a $200 tax on gun silencers, and a requirement that those accessories be registered with the government. MAGA Republicans tried to remove the registration requirement, but failed, settling for a provision that would eliminate the gun silencer tax. By simply eliminating this tax, Republicans have created an opportunity to sink the National Firearms Act (NFA) entirely.
The gun industry is already preparing lawsuits to take down the few remaining regulations in the NFA that are meant to curb gun violence. In the words of one manufacturer: “The repeal of the $200 tax stamp doesn’t just mark a win—it may have opened the door to something bigger. With the tax reduced to $0, the legal foundation of the NFA (National Firearms Act) is suddenly vulnerable. If the NFA no longer generates revenue through suppressor tax stamps, does the registry and lengthy approval process still have constitutional backing? We believe it doesn’t.”
$2 billion for rum, $40 million for statues
Lobbyists for the liquor industry managed to secure a $2 billion tax rebate for rum shipments from Puerto Rico and the U.S. Virgin Islands. There’s also a $40 million appropriation for statues– yes, statues– that Trump wants to install in what he’s called the “Garden of Heroes.”
Grossly Misplaced Priorities
Your electric bill will get higher. Medical debt will soar. The national deficit will grow. Parents will skip meals so that their kids don’t have to go to bed hungry. Many of those kids will go hungry anyways. All so that MAGA Republicans can give bigger tax breaks to billionaires, provide hefty incentives to space companies and oil drillers, and even burn a bit of money on liquor and statues.
MAGA Republicans legislate like a rabid squirrel who just ripped through a six-pack of energy drinks. They are destructive. They are short-sighted. And they should not be in charge of our country.
How will this bill impact you and your family? Reply to this email and let us know. We’d like to feature some of your stories in a future memo.
