The Social Security and Medicare Fair Share Act proposes targeting payroll tax loopholes for high-income earners.

While on the presidential campaign trail last year, Donald Trump promised workers in Las Vegas that he would eliminate taxes on tips. It was a popular proposal – so popular, in fact, that his competitor Kamala Harris embraced the idea as well.

A new bill would tax income over $400K to help fix Social Security’s funding gap and avoid 17% benefit cuts by 2035.

The proposal threatens states’ ability to fund state supplemental payment programs for Medicaid, which providers rely on as a boost for revenues.

The House Energy and Commerce Committee has an instruction to cut a minimum of $880 billion in spending. One of the biggest programs under the committee’s authority is Medicaid.

The Trump administration is seeking to end a controversial tax on Medicaid providers that has allowed New York to draw down billions in federal dollars, putting hospitals and nursing homes at risk of losing money.

More than half of the committees tasked with drafting portions of the reconciliation package have advanced their bills, but disagreements remain on some of the more complicated tax issues.

House Republicans aim to cut federal spending by $2 trillion, hitting Medicaid and other programs. How the cuts could impact millions of Americans.