Simple messaging involves simple math: Spread the word

I had lunch today with a friend who was so traumatized by the news coming out of Washington that she had completely tuned out. She was shocked when I shared some of the high-level details in the 1,000 page tax bill that was passed this summer. This is what I told her:

The U.S. is fast becoming an hour-glass economy where the rich and poor are ballooning in size, separated by a shrinking middle class.

Trump’s mega bill that was enthusiastically passed by Republican members of both houses (and ceremoniously signed on July 4^th) will mold that hour-glass into ridiculous new proportions. Here are some simple facts on the new tax and spending law:

• The wealthiest 1% of Americans will reap a combined tax benefit over $1 trillion dollars over the next decade.
  

• The rich are popping champagne! In addition to the tax bonanza for wealthy individuals (like Mr. Trump), nearly 10% of the companies listed on the S&P 500 already pay NO federal taxes (this won’t change under the new law)! Tesla, 3M and Airbnb paid ZERO tax and received $10 billion in tax credits in 2023.
  

• At the same time, there will be nearly $1 trillion in cuts to Medicaid ($911 billion to be exact) and 10 million people will lose healthcare coverage.
  

• And, 23.3 million Americans will lose some or all of their Food Stamps/SNAP benefits – for an average loss of $146 per month. That will “save” the government $287 billion over 10 years.

Adding insult to injury, the law requires states and local governments to pick up the tab for compliance issues, and that ain’t cheap.  

In San Diego County, where I live, the county expects the federal budget cuts, new cost-sharing rules, and regulatory requirements for food stamps/SNAP and Medicaid could be $300 million a  year!

The cost of regularly certifying food stamps/SNAP and Medicaid recipients (to be sure they’re complying with work requirements), alone could cost as much as $80 million! That means useless paperwork EVERY SIX MONTHS for Medicaid recipients (the reauthorization time frame for SNAP varies).  

Numerous studies have found that many Medicaid recipients lose coverage during renewal periods because of administrative glitches –because they didn’t receive a renewal form, didn’t submit all of the required forms, or the agency didn’t process their renewal in a timely manner – not because they aren’t still eligible.

You don’t have to be a rocket scientist to calculate that those oversight costs are far greater than any fraud that is occurring. And, making state and local governments pay for those so called “accountability” measures will take money away from other important programs and services.

Nonprofits will do whatever they can to pick up the slack, but let’s be clear: charitable dollars whether they’re coming from individuals, foundations, or corporations can’t come close to making up for the loss of federal funds.

And tax incentives for corporate given have DECREASED as a direct result of the law. 

Is this really the America we want?

A place where 1% reap the lion share benefits? 

You can help fix this! This is a democracy. We have the power to reverse this!

I don’t care if your politics are Red, Blue, Green, Orange or Magenta– your nonprofit can educate people!  If you can’t remember these numbers, share this blog!

Register people to vote! Write to your city, state, and federal elected officials on a regular basis to tell them about your work and what you think of these policies!

We must speak up NOW. If not, now when?    

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Pat Libby is a change management consultant working principally with nonprofit corporations. She is author of The Empowered Citizens Guide: 10 Steps to Passing a Law that Matters to You, Oxford University Press, The Lobbying Strategy Handbook, second edition, Oxford University Press, and Cases in Nonprofit Management, SAGE. She has served as an academic, senior executive, board member, and consultant to innumerable nonprofit organizations and foundations for more than three decades.

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