Trump Champions Tax Cuts as Critics Point to Medicaid Losses
Voters in key states report that daily service cuts are outweighing the benefits of the new tax law.
By Marco Whitaker ·
A central conflict has emerged in the 2026 midterm campaigns: the tension between federal tax relief and the reduction of social safety nets. While the administration celebrates the One Big Beautiful Bill Act, many voters argue the changes have not lowered their daily costs. President Donald Trump defended the legislation at a rally in Corpus Christi on Tuesday, calling it a great, big, beautiful bill delivering the largest tax cuts in American history.
The law was signed into effect in July 2025. It introduced specific tax breaks for workers, including no tax on tips and overtime pay. However, it also implemented substantial cuts to Medicaid and other social service programs. Republicans have promoted the tax provisions throughout the election cycle. Rep. Derrick Van Order, R-Wis, noted at the GOP convention in September that many Americans are unaware of these specific exemptions.
Critics argue the financial gains are insufficient to offset rising prices. Todd Belt, a professor at George Washington University, stated that affordability remains the primary concern for voters. He cited gasoline, groceries, health care, and child care costs as the main drivers of voter sentiment. Belt observed that voters report they cannot make ends meet, suggesting the tax cuts are not making a dent in their financial struggles.
Democratic candidates are focusing on the distribution of the tax benefits. James Talarico, a U.S. Senate candidate in Texas, proposed repealing the tax breaks for the top 1% of earners. In an interview in August, Talarico said he would redirect that $1 trillion to the middle class as a cost-of-living tax adjustment. He argued these policies would more directly benefit Texans.
The impact on Medicaid recipients has become a focal point for individual voters. Amber Mader, a disabled and paralyzed voter in Arkansas, relies on Medicaid and Social Security Disability. She reported that her home health care nursing and transportation services have been reduced since the law passed. Mader said she will not see a single cent in benefit from the tax cuts but is dealing daily with severe difficulties and disruptions to basic services.
Elena Patel, co-director of the Urban Brookings Tax Policy Center, noted that tax policy is ill-suited to tackle immediate affordability issues. Patel said the early changes benefited middle and lower-class families. However, she predicted that as time passes, more people will notice the bill is benefiting high-income taxpayers.
