Jason Furman, Harvard professor and former CEA chair, and Kevin Brady, former Chair of the House Ways and Means Committee, joins 'Squawk Box' to discuss the tax impact of the budget bill, any issues with Medicaid and much more.

Washington

Harvard professor Jason Furman and former House Ways and Means Committee Chair Kevin Brady discussed the tax and Medicaid implications of the recently passed budget bill. Furman acknowledged the value of the permanent corporate tax cuts from the 2017 Tax Cuts and Jobs Act but argued that extending individual tax provisions was not fiscally responsible. Brady emphasized that the bill's temporary tax breaks, such as middle-class tax cuts and the child tax credit, were designed to be reconsidered by future governments.

Furman expressed concern over the bill's substantial reductions to Medicaid and other social safety net programs, citing Congressional Budget Office estimates that millions could lose insurance coverage. He argued that these cuts could lead to higher health costs and insurance premiums for others. The discussion also touched on the effectiveness and fairness of Medicaid, with Furman defending its cost-effectiveness and opposing work requirements for health coverage.

Professor: 'Big beautiful bill' concerns are dramatic cuts to Medicaid

Joining us now to debate the tax break some other aspects of the newly passed budget bill to bring in Harvard professor Jason Furman He's former CEA chair in the Obama administration and Kevin Brady Former chair of the House Waynes and Means Committee. He's an architect of the 2017 a tax cut and Jobs Act. He's now a Spokesperson for the Alliance for Competitive Taxation. Your name is Kevin as far as I know you're not being considered for Fed head Are you are you Kevin, you don't know my knowledge Before I ask it, you know, Kevin was an architect Jason of the 2017 tax cuts so before I start, you know trying to get get an argument started Did you think that those should be extended in this most recent bill? Jason because I can get a debate starter if you think they should have Been allowed to lapse so I think the Permanent parts of that law were really thoughtful and well done The corporate rate needed to be cut a lot of the other things done with the tax base I think we're really quite smart and quite good But no, I don't think we could afford to extend the individual provisions. That's why they were temporary. They were a lower priority They were less important for economic growth for simplification And I would have rather seen him replaced with a new tax reform rather than just extended and put on the debt Could that have been done? Kevin Brady well, actually, I think Jason's right in the sense that we locked in the most pro-growth parts the Redesigning a completely opposite obsolete tax code But what we left to be sunset were the most bipartisan parts of the bill Which was the middle-class tax cuts those new Main Street 20% historic tax deduction for Main Street businesses and the child tax credit Believing that whoever was running government at the time would feel like those are valuable tax breaks to continue Jason Sometimes I think You know Willie Sutton is where the money is if you're gonna cut taxes a lot of it's gonna accrue to the people that pay Taxes that's is just no way around that But I guess Democrats would argue that it was skewed to wealthier people while everyone did get a tax break in 2017 and everyone would have gotten a tax hike if they were let if we let them expire Are you still saying that that that a disproportionate share benefits high? wealthier taxpayers Look there was stuff at the high end Expanding and making permanent estate tax relief. I don't think we need the top rate to be 37 I think it could have gone back to 39.6. I think Donald Trump Himself had floated on that idea But you look at the bill as a whole and frankly my concern about lack of balance Isn't what was written into the tax side my concern there is The really dramatic cuts to Medicaid Rolling back other parts of the social safety net the Congressional Budget Office estimates That'll increase the number of uninsured By 12 million people and by the way, those costs will spill over to many others in the form of higher health costs higher Insurance premiums and the like so that it's that low-end Cuts that I found Jason Would you would you concede though that Medicaid wasn't really designed for what it was being used for and while it is It is coverage. It's not the most Cost effective way to cover people it does sometimes unfairly advantage people that you know not pregnant women and disabled people, but You know able-bodied Individuals that this aren't even out looking for jobs that the other thing to ask you I mean is it if it's a 20% hike in Medicaid spending over the next 10 years But not a 30% hike do you really call that a cut I Mean on the cost-effective. It actually is quite cost-effective Because it pays providers so little if you wanted to have a conversation Joe about how to repeal and replace it with something else I'd be all for having that conversation and be happy to know that part of it That's not what this was and work requirements. I wouldn't do them for health We have a basic philosophical idea that we're not going to leave someone on the street in front of a hospital and not pay for That treatment if that's your face. They get treated. We know they get treated it. No one gets That's why I think you want to be honest about it pay the cost up front Give them insurance and the experiments we've done on work requirements in Medicaid for better or worse

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