Marketplace Morning Report Who should pay for programs like Medicaid or food stamps?
May 23, 2025
The podcast dives into the debate over who should finance Medicaid and food stamp programs, with states facing tough choices about taxes and spending. It also revisits the contentious tariff situation and its economic implications, particularly for international goods. Additionally, it scrutinizes the gap between corporate America's pledges to support racial equality after George Floyd's murder and the actual funds that have been delivered, highlighting ongoing challenges in both legislation and corporate accountability.
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States Face Higher Welfare Costs
- The GOP tax bill plans to shift more Medicaid and SNAP costs to states, increasing their financial burden.
- States may respond by raising taxes, cutting spending, or making program eligibility stricter.
Tax Hikes to Cover Program Cuts
- States would need to raise sales or income tax rates significantly to offset federal funding cuts.
- For instance, Vermont's sales tax may jump from 6% to 8.4%, California's from 7.2% to 9.3%.
States Must Plan for Changes
- States should prepare for uncertainty by holding special sessions to plan program changes and budgeting.
- They might adjust eligibility criteria or use rainy day funds to manage increased costs.