Providers don't want to see a reduction in Medicaid tax

People generally prefer to pay lower taxes. So it might seem odd that providers would oppose such a move. Yet that is exactly what’s happening. Why is the field uniformly opposed to a provision in President Obama’s budget plan that lowers the amount states could tax providers by $18.4 billion? Because this tax “cut” would translate to fewer matching Medicaid dollars later on. So it shouldn’t be surprising that industry officials are speaking out.

Republicans slammed the budget, for a different reason. They want to see more cuts in a spending plan that they see as bloated. Top Republicans on the House and Senate budget committees said they would oppose $8.7 trillion in new spending that piles another $13 trillion onto the debt over the next 10 years.

“In this critical test of leadership, the president has failed to tackle the urgent fiscal and economic threats before us,” said House Budget Committee Chairman Paul Ryan (R-WI).

Other organizations panned the plan for failing to address tough choices the nation faces. These include spending for Social Security, reducing the national debt and revamping the tax code.

But White House Budget Director Jacob Lew defended the plan, saying:  “The budget that we sent to Congress is a responsible plan that shows that we can live within our means and we can also invest in the future. It cuts spending, and crucially, it cuts the deficit.”