The new tax package proposed by Republicans in the House of Representatives, described by
President Donald Trump as a ‘one big, beautiful bill’,
has reignited political debate over the country’s economic and social direction. While its primary goal is to
extend tax cuts from the Trump administration
, its implications reach far beyond taxation. Various analyses suggest the
proposal threatens to dismantle key pillars of healthcare and energy reforms established by former Presidents Barack Obama and Joe Biden
.
One of the most significant changes in the proposal is its impact on the
Affordable Care Act (ACA)
, known as ‘
Obamacare
,’ which has expanded healthcare access for millions of Americans since its implementation.
According to the
Congressional Budget Office (CBO), an independent entity, up to 10.9 million people could lose their health coverage if the Republican plan is approved
. This includes 1.4 million undocumented immigrants currently receiving coverage through state-funded programs.
The measure introduces
new requirements
for
Medicaid beneficiaries
—the public health program for low-income individuals—such as working or performing community service for at least 80 hours a month, in addition to undergoing eligibility checks every six months. Although exceptions are considered, program advocates fear these changes will hinder access to coverage and represent a setback to the progress made over the past 15 years.
Currently, more than
80 million people are enrolled in Medicaid, and 41 states have opted to expand coverage thanks to the ACA.
The new restrictions could drastically reduce that number, primarily affecting adults aged 18 to 64 without disabilities. The potential rollback of these expansions poses a significant threat to the healthcare security of millions of Americans.
Another target of the
Republican proposal is the green energy tax exemptions included in Joe Biden’s Inflation Reduction Act
. These incentives, designed to promote the energy transition, benefit both electric vehicle buyers and renewable energy developers. However, the new tax plan proposes to gradually eliminate these credits, initially over several years, though under pressure from the conservative Freedom Caucus, the elimination could occur just 60 days after the law is passed.
Companies relying on these incentives, including electric car manufacturers like
Tesla
and
clean energy developers,
have begun expressing concern over the potential loss of federal funding and support. Republican lawmakers argue that these subsidies are part of what they call a ‘New Green Scam,’ and some, like Senator Mike Lee of Utah, have made it clear that no Republican should support their continuation.
Although Republicans argue that the plan aims to reduce unnecessary spending, eliminate fraud, and resize government programs, the criticisms have been strong. For many, this plan represents a reversal of two of the greatest political legacies of the Obama and Biden administrations: universal healthcare access and investment in clean energy.
Moreover, the fact that programs like Medicaid and green incentives have become deeply rooted in the country’s civic life means that any attempt to dismantle them will face political, social, and economic resistance. Republican lawmakers, for their part, defend the need for structural reform to ensure fiscal sustainability, while Democrats warn of the risks to millions of Americans.
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