The massive spending and tax bill President Trump signed last month includes a range of provisions that will affect U.S. citizens — from temporary changes that would allow Americans to deduct up to $25,000 for tip wages and $12,500 for overtime pay through 2028.
The bill also includes cuts to Medicaid and reform for the Supplemental Nutrition Assistance Program (SNAP), which provides aid for food to more than 40 million low-income Americans.
Ideastream Public Media recently spoke to five Northeast Ohioans about how the bill will change their lives.
SNAP
Lorain resident Mary Ellen Duffy said she's concerned about cuts to the Supplemental Nutrition Assistance Program, or SNAP. SNAP helps low-income families supplement their grocery budget.
Duffy not only has to support herself with SNAP funds, but also her adult son who she said is unable to work because
of a back injury.
Overtime taxes
Riley DeCavitch, a factory worker in the Mahoning Valley, said the bill’s provision eliminating taxes on the first $12,500 of overtime will be significant for her and her coworkers.
Factory workers are struggling because their paychecks alone are not sufficient to pay their bills anymore, she said.
The overtime money could go toward a down payment on a house or help pay off her car, DeCavitch said.
Immigration
Samantha Mutebi, of Akron, is an American citizen who was born and raised in Congo and lived much of her life as a refugee in Uganda.
Mutebi created a non-profit organization called “Better Minds,” which provides refugees and other immigrants with aid and support — often in the form of transportation, translation services and community building.
The new tax and spending bill increases funding for U.S. Immigration and Customs Enforcement (ICE).
Mutebi said she has clients who are both undocumented and in the country with legal status. She said even some of the documented clients are afraid of going out in public because they're afraid of being profiled and approached by ICE agents.
Tax on tips
Zach Bennett, a 25-year-old bartender in Lorain, said the bill’s provision eliminating taxes on the first $25,000 of tips would benefit the hospitality industry.
It also could help change the direction of his life, Bennett said.
Medicaid
Traci Skipper, a nonprofit housing director from Canton, said she never anticipated her family would need Medicaid.
But during the COVID-19 pandemic, her 25-year-old son, Jacquez, who was working as an accountant, spiraled into a mental health crisis. His behavior was so erratic, Skipper called a crisis intervention team, which led to the first of several hospitalizations to treat his bipolar depression.
Jacquez’s health team signed him up for Medicaid, which covered his health care appointments and medications. Skipper said she’s concerned that cuts to Medicaid passed in the federal spending and budget bill could block others' access to the same life-saving care.
“[Jacquez] had our support, everybody supported him,” she said. “I worry about folks that don't have anybody in their corner to help them navigate paperwork, or any of these new work requirements, falling through the cracks even more if it gets harder to access services. I think it'll require a lot of community and mutual aid helping.”
