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It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse.
Imagine a woman in her late 20s, raising a young kid and working two jobs. On weekday mornings, she waits tables at a chain diner just off the highway. On weekends, she picks up banquet shifts at a hotel near the airport. Some weeks she hits 40 hours. Most weeks she doesn’t. Her schedule is built around whoever else calls off, whichever babysitter shows up, and how many tips she can pull in when customers don’t walk out on the check. She’s not lazy. She’s tired. She’s not failing. She’s just barely holding on.
She doesn’t ask for much—just enough to stay ahead of the next crisis. One sick day, one bounced check, one broken car door, and it all starts to unravel. Like nearly 60% of Americans, she’s living paycheck to paycheck. This isn’t some outlier story. It’s the American norm, life for millions of workers whose labor keeps the country running, even as their budgets can’t absorb a single emergency.
Last week, she saw a headline. The new House budget plan would eliminate federal income tax on tips. She read it twice. Finally, something for workers like her. Finally, a win.
This budget offers token relief while delivering sweeping cuts.
But what she didn’t see—what the headline didn’t say—is that while she might save a few hundred dollars come tax season, the same bill cuts the healthcare, food, and education programs that actually keep her afloat. It’s not a lifeline, it’s a tradeoff. And it’s a bad one.
Early Thursday morning, May 22, after days of internal negotiations and public brinkmanship, the House narrowly passed the “One Big Beautiful Bill,” a 1,100-page tax and spending package drafted with support from the Trump White House. Despite defections from within their own ranks, GOP leadership managed to push the bill through with no Democratic support and just enough Republican votes to avoid collapse. The measure now moves to the Senate, where further changes are likely, but the core architecture is intact.
The bill includes more than $3.8 trillion in tax cuts, most of which go to the wealthiest households and largest corporations. It makes permanent the 2017 Trump tax cuts, increases the estate tax exemption to $15 million per person, and expands loopholes for business income. According to the Institute on Taxation and Economic Policy, the top 1% of households would receive an average annual tax cut of approximately $79,000.
And the waitress? If she reports $10,000 in tips next year, she might see a refund boost of around $700. That’s her win. That’s what she gets.
But here’s what she could lose.
If her hours drop below 80 in a given month, and she can’t prove every one of them with pay stubs or employer forms, she could lose her Medicaid coverage. Under the latest version of the bill, these nationwide work requirements are no longer delayed until 2029. They’re scheduled to take effect as early as the end of next year. These requirements don’t just ask that you work. They ask that you document it, every month, without gaps. Miss a report, and your health insurance disappears. No phone call, no warning, just a closed file and an empty pharmacy counter.
If she misses work because her kid’s school is closed or a sitter falls through, she might lose Supplemental Nutrition Assistance Program (SNAP) benefits too, especially if she doesn’t fill out the right paperwork on time or fails to meet a new state threshold. The revised bill raises the age limit for mandatory work compliance and eliminates long-standing exemptions for parents. The moment her child turns seven, she’s treated like someone with no caregiving responsibilities at all. And for the first time in decades, states will be required to help fund those benefits. If they can’t, or choose not to, those benefits could disappear.
If she tries to go back to school to finish the associate’s degree she started, she may no longer qualify for a Pell Grant. The bill raises the minimum course load for a full award from 12 credits to 15, more than a full-time load at most colleges. For a working mother juggling jobs, that’s not just a higher bar, it’s a locked gate. She’d have to choose between working more hours to afford tuition or taking more classes she can’t pay for to receive aid. Either way, she loses.
And that’s the pattern. Across the board, this budget offers token relief while delivering sweeping cuts. It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse. It shifts risk downward and wealth upward. It wraps itself in the language of freedom and choice, while quietly dismantling the systems that offer working people a shot at stability.
This isn’t a misunderstanding of how poverty works. It’s a bet that most people won’t notice until it’s too late. It counts on workers like her being too busy, too tired, or too stressed to read the fine print. It counts on the headlines focusing on the tip exemption, not the Medicaid paperwork that knocks her off coverage. Not the missed deadline that shuts off SNAP. Not the registration block that forces her to drop out of community college. It makes the punishment quiet and the payoff loud.
We know who this helps. And we know who it hurts.
As of late 2024, approximately 78.5 million Americans were enrolled in Medicaid or CHIP. In fiscal year 2023, 42.1 million participated in SNAP each month, and school meal programs served more than 4.6 billion lunches. The majority who rely on these services are children, seniors, and working families. By contrast, according to the Yale Budget Lab, fewer than 2.5% of U.S. households would benefit from the tip tax exemption, and only about 5% of low- and moderate-wage workers are employed in traditionally tipped occupations. And even among them, the average gain won’t cover a single unexpected car repair. The math doesn’t work. The logic doesn’t hold. But the politics do.
Because the waitress at the diner won’t get a press release when her SNAP balance goes to zero. She won’t get a spotlight when her kid’s lunch bill doubles or when she finds herself sitting in the ER without coverage. She’ll just keep showing up. Keep working. Keep holding the line with less and less help.
And that $700 refund?
It won’t pay for the inhaler when her daughter’s asthma flares up. It won’t buy a month of groceries when benefits are cut. It won’t fix the brake line on the car that barely starts. It won’t cover tuition when she’s one semester away from finishing a degree. It won’t save her when the safety net snaps under her feet.
No matter how “beautiful” they say the bill is, it won’t hold her life together when everything else is falling apart.
"If enacted, this would be the largest transfer of wealth from the poor to the rich in a single law in U.S. history."
The nonpartisan Congressional Budget Office said Tuesday that the Republican legislation speeding through the U.S. House of Representatives would cut household resources for the bottom 10% of Americans while delivering gains to the wealthiest in the form of tax breaks.
"If enacted, this would be the largest transfer of wealth from the poor to the rich in a single law in U.S. history," Bobby Kogan, senior director of federal budget policy at the Center for American Progress, said in response to the CBO analysis, which was released shortly before the start of a dead-of-night House Rules Committee hearing on the Republican reconciliation package.
On average, according to the CBO, U.S. households would "see an increase in the resources provided to them by the government over the 2026–2034 period."
But the resources "would not be evenly distributed among households," the CBO found, estimating that "in general, resources would decrease for households in the lowest decile (tenth) of the income distribution, whereas resources would increase for households in the highest decile."
"This is what Republicans are fighting for—lining the pockets of their billionaire donors while children go hungry and families get kicked off their healthcare."
The analysis takes into account an extension of soon-to-expire provisions of the 2017 Trump-GOP tax cuts as well as Republicans' push for around $1 trillion in combined cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which would primarily harm low-income Americans.
"The nonpartisan Congressional Budget Office's unprecedented analysis has confirmed what Democrats have known to be true—the GOP Tax Scam will hurt working families the most while delivering massive tax breaks for billionaires like Elon Musk," said House Minority Leader Hakeem Jeffries (D-N.Y.), who joined Rep. Brendan Boyle (D-Pa.) in requesting the distributional analysis.
"Any claims otherwise are intentionally deceptive regarding the Republican plans to rip healthcare away from nearly 14 million Americans and take food out of the mouths of millions of people, including children and seniors," said Jeffries. "Republicans are attempting to quickly jam this unpopular legislation through the House because they know that the longer they wait, the more will come to light about this cruel and unconscionable bill. For a party that claims to be for the working class, this analysis indicates the opposite."
Boyle, the ranking member of the House Budget Committee, said that "this is what Republicans are fighting for—lining the pockets of their billionaire donors while children go hungry and families get kicked off their healthcare."
"CBO's nonpartisan analysis makes it crystal clear: [President] Donald Trump and House Republicans are selling out the middle class to make the ultra-rich even richer. Every word out of Trump's mouth about helping working Americans was a lie."
The CBO also said Tuesday that the Republican reconciliation package, which Trump has championed, would trigger automatic cuts to Medicare spending—reductions that the nonpartisan body did not factor into its distributional analysis.
The CBO's analysis also did not include the impact of a tentative deal to boost the cap on state and local tax deductions (SALT), a change that would primarily benefit wealthy households.
"This reported SALT deal and accelerated Medicaid cuts would make the bill even more effective at transferring resources from low-income to high-income households," said Brendan Duke of the Center on Budget and Policy Priorities, referring to GOP hardliners' push for an earlier start date for Medicaid work requirements, which experts have decried as cruel and ineffective.
This administration rejects American values as it embraces bribes from foreign dictators, harasses journalists, imprisons op-ed writers, and threatens judges.
At its deepest level, government is a moral force grounded in a moral view of the world.
It may not comport with morality as most of us view it; the Saudi oppression of women, the Russian violence against the queer community, and the Iranian brutal suppression of that nation’s democracy movement are all examples of things most Americans consider immoral.
But each is grounded in a particular moral worldview that those governments and their leaders have adopted.
While America has experienced many dark moral episodes throughout our history, we’ve always held or at least espoused a basic set of moral principles:
Until now.
Republicans in the House of Representatives just inserted into their must-pass “Big, Beautiful” multi-trillion-dollar-tax-break-for-billionaires legislation a provision that would enable the president to designate any nonprofit—from Harvard to the American Civil Liberties Union to your local Democratic Party—a “terrorist-supporting organization” that then loses their tax-exempt status, effectively putting them out of business.
And who decides who gets that designation? The president. And he gets do to it in secret.
When we abandon our own stated principles in foreign relations, those first laid out in our Declaration of Independence and Constitution, the results are almost uniformly bad for us, for them, and for democracy around the world.
This is exactly how both Russian President Vladimir Putin and Hungarian Prime Minister Viktor Orbán first destroyed dissent and free speech in Russia and Hungary.
U.S. President Donald Trump has been pursuing this for a decade, from his trying to designate Antifa a “terrorist organization” to his attacks on our universities to his use of Stalin’s phrase “enemy of the people” to describe journalists and opinion writers like me.
One level above these core democratic principles—of free speech, the right to protest, and the power of the people in free and fair elections to change our leadership—are two major reformations that came about after major national upheavals.
The first was after the Civil War, when the nation (at least in principle) embraced the humanity and citizenship of nonwhite people with Reconstruction and the 13th through the 15th Amendments to the Constitution. The second was during the Republican Great Depression, when FDR rebooted our republic to become the supporter of last resort for the working class, producing the world’s first more-than-half-of-us middle class.
Now Trump, Elon Musk, and their cabal of right-wing billionaires are trying to dissolve virtually all of this, replacing it with the sort of “illiberal democracy” we see in Russia and Hungary, where there are still elections (but their outcome is pre-determined), still legal protections for the press and free speech (but only when that speech doesn’t challenge those in power), and only the wealthy can truly enjoy safety and security.
After the Saudi, Emirati, and Qatari governments each gave the Trump family massive gifts in the form of billion-dollar development and Trump hotel or golf course licensing deals, Trump made a speech in which he abandoned our 250-year history of advocating democracy around the world.
Of course, as mentioned, we’ve often failed at that mission in the past. Former President Ronald Reagan’s support for the death squads in Central America haunt our southern border to this day; former President Dwight D. Eisenhower’s embrace of the Shah of Iran still rattles the Middle East; and former President Richard Nixon’s tolerance of Chinese brutality led us to, in the name of capitalism, help that nation’s communist leaders create the most powerful and medieval surveillance state in world history.
But these exceptions prove the rule: When we abandon our own stated principles in foreign relations, those first laid out in our Declaration of Independence and Constitution, the results are almost uniformly bad for us, for them, and for democracy around the world. And it becomes even more destructive when this administration rejects American values as it embraces bribes from foreign dictators, harasses journalists, imprisons op-ed writers, and threatens judges.
This issue of morality in government has been at the core of our political debate for centuries. Then-President Harry Truman was explicit about it way back in 1952:
Now, I want to say something very important to you about this issue of morality in government.
I stand for honest government… To me, morality in government means more than a mere absence of wrongdoing. It means a government that is fair to all. I think it is just as immoral for the Congress to enact special tax favors into law as it is for a tax official to connive in a crooked tax return. It is just as immoral to use the lawmaking power of the government to enrich the few at the expense of the many, as it is to steal money from the public treasury. That is stealing money from the public treasury…
Legislation that favored the greed of monopoly and the trickery of Wall Street was a form of corruption that did the country four times as much harm as Teapot Dome ever did.Private selfish interests are always trying to corrupt the government in this way. Powerful financial groups are always trying to get favors for themselves.
Tragically, for both America and democracy around the world, this is not how Donald Trump was raised and does not comport with the GOP’s current worldview. Fred Trump built a real estate empire through racism, fraud, and deceit. He raised Donald to view every transaction as necessarily win-lose, every rule or regulation as something to get around, and every government official as somebody to be influenced with threats or money.
The GOP embraced a similar worldview with the Reagan Revolution as former Labor Secretary Robert Reich notes in his must-read Substack newsletter:
But starting with Reagan, America went off the rails. Deregulation, privatization, free trade, wild gambling by Wall Street, union-busting, record levels of inequality, near-stagnant wages for most, staggering wealth for a few, big money taking over our politics.
Stock buybacks and the well-being of investors became more important than good jobs with good wages. Corporate profits more important than the common good.
Greed is a type of moral stance. It’s not one that open, pluralistic, democratic societies embrace beyond their tolerance of regulated capitalism, but it is a position that expresses a certain type of morality, one most famously expounded by David Koch and Ayn Rand.
It’s inconsistent with the history of humanity itself, as I document in detail in The Hidden History of American Democracy: Rediscovering Humanity’s Ancient Way of Living. From Margaret Mead pointing out how healed leg bones in hundred-thousand-year-old skeletons show that ancient societies cared for their wounded to the ways Native American tribes dealt with people who stole or hoarded even without the use of police or prisons, the triumph of greed has historically been the exception rather the rule.
When Donald Trump said, “My whole life I’ve been greedy,” it was one of the few honest bits of self-appraisal he’s ever tendered. And it should have warned all of us.
Greed and hunger for power are, ultimately, anathema to our traditional American values.
And it’s high time we began to say so, and to teach our children the difference between a moral nation that protects its weakest citizens while promoting democracy around the world and an “illiberal democracy” like Russia, Hungary, and the vision of today’s GOP.
We’ve been better than this in the past, and it’s high time we return to those moral positions that truly made America great.