Reforming Medicaid and Renewing the Tax Cuts: Jonathan Williams on The Hugh Hewitt Show
It’s pretty common sense, as you’ll find most things from ALEC.
Appearing on The Hugh Hewitt Show, ALEC President and Chief Economist Jonathan Williams highlighted the need for fiscal discipline and structural reform—particularly in Medicaid.
Williams referred to a recent ALEC letter circulated to state legislators and federal policymakers advocating changes to Medicaid, the federal-state health care program for low-income Americans. According to Williams, “Estimates show there’s been something like $1.1 trillion in improper payments in the Medicaid system alone over the last decade.”
He argued that reform is not only a budgetary imperative during “budget reconciliation season.” Also, it “actually gets Medicaid back to what it was supposed to do,” Williams said. “Taking care of those truly in need and get away from this illusion of Obamacare and Medicaid expansion… that transferred Medicaid to able-bodied, working-age males with no kids. I mean, this is a travesty.”
Williams further warned about the long-term unsustainability of federal incentives under the Affordable Care Act.
“What happened under Obamacare was obviously the Feds were promising states the so-called free lunch… We knew that would never last,” he said. “How long can 90% federal match last? I don’t think it’s going to be very long.”
He credited Speaker Mike Johnson for advancing the national conversation: “It is being discussed right now, thanks to the leadership of Speaker Johnson here in D.C.,” Williams said.
When Hewitt asked whether states that refused Medicaid expansion should see an improved standing in ALEC’s Rich States, Poor States rankings, Williams didn’t hesitate.
“It does indirectly,” he said. “But that’s another one we need to add to our mix is a yes or no—have you taken that fiscally irresponsible step to expand your Medicaid coverage?”
States like Mississippi and Louisiana, he noted, remain heavily dependent on federal funds despite recent policy gains.
“In Louisiana’s case, John Bel Edwards, the Democrat there, expanded Medicaid—and that was one of the reasons why,” Williams said.
Turning to federal tax policy, Williams praised recent efforts to renew and extend key provisions of the 2017 Tax Cuts and Jobs Act.
“I think it was a positive step in the right direction,” he said, referring to the latest markup led by House Ways and Means Chairman Jason Smith. “He did exactly what they needed to do—extend the lower rates, look at that small business treatment, and do things that will keep us out of a recession.”
Still, he acknowledged ongoing friction over the SALT (State and Local Tax) deduction cap.
“Obviously, one of the big sticking points will be the so-called SALT deduction. We’ve talked about that many times,” Williams said.
The conversation ended on a celebratory note for Texas, which recently passed a sweeping education freedom package.
“Boy, this is a big one,” Williams said. “This is a big victory for nearly all 6 million public school students.”
He offered kudos to Texas legislative leaders, including Lieutenant Governor Dan Patrick, Speaker Dustin Burrows, House Education Committee Chairman Brad Buckley, and Senator Brandon Creighton, calling the reform a “game changer.”