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The GOP's New Tax Plan Will Affect Everyone, But Will It Grow The Economy?

President Trump signs the $1.5 trillion tax overhaul package into law on Dec. 22.

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The hubbub over the Republican tax plan has died down some since it passed, but the bill isn’t forgotten — not by a long shot.

Many Americans will see the effects already this year, when the IRS gives employers new guidance on how much money to withhold from people’s paychecks. And you can bet it will be a major talking point in the 2018 midterm elections, supplemented by regular presidential tweets touting new hiring and higher stock prices.

Against that backdrop, we received a wave of listener inquiries that boil down to one basic question: Will the recently passed Republican tax plan grow the economy? We decided to try to give these listeners a (relatively) simple answer.

You may already know where this is going. This question asks for a prediction, but also about economics. So a simple yes or no is impossible.

But we can make some educated guesses, based on what smart people have said about this tax plan.

A bump, then a lull

Fortunately, someone has already asked a version of this question to a whole mess of economists at once. The University of Chicago’s Booth School of Business often polls top mainstream economists on issues of the day. And on this question, those economists leaned heavily away from saying that the bill would create long-term economic growth.

The Booth School asked economists in November whether they agreed that tax plans “similar to those currently moving through the House and Senate” (this was before the tax bill was passed, remember) would leave GDP growth “substantially higher a decade from now than under the status quo.”

Of the 42 economists, just over half (52 percent) disagreed — that is, they don’t believe the plan would lead to faster economic growth. Thirty-six percent were uncertain. Only 2 percent agreed. (The remainder did not answer.)

Survey results published Nov. 21, 2017.


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So they weren’t unanimous, but almost none of them had confidence that the tax plan will lead to “substantial” economic growth.

This runs counter to Republican messaging during the tax fight that it could boost GDP by an average of 0.4 percent per year over the next decade. While the bill was being crafted, multiple expert analyses of the tax plan agreed that it would fall far short of that kind of growth.

But let’s start at square one. The idea that tax cuts would create growth isn’t at all wrongheaded. It makes sense that giving people (or businesses) some extra dollars through the tax code would lead them to spend more, speeding up the economy.

And different tax cuts affect the economy in different ways. In a 2012 report, Mark Zandi, chief economist at economics research firm Moody’s Analytics, estimated the effects of various policies.

At that time, he found that a temporary child tax credit passed in 2009, for example, boosted GDP by $1.38 for every dollar in revenue lost on that tax cut. A payroll tax holiday came in at $1.27. Meanwhile, extending the Bush tax cuts came in at 35 cents for every revenue dollar lost, and cutting corporate taxes came in at just 32 cents.

So what does Zandi think of this tax plan — will it create growth?

“Not much,” he said. “It’s a pretty costly way to not go very far.”

In his view, the tax plan will create a temporary sugar high that will taper off after a couple of years.

“The economy will experience stronger near-term growth in 2018 and 2019 with the stimulus created by deficit-financed long-term tax cuts,” he said. “That will generate temporary growth. But it will also result in higher interest rates.”

There are a few reasons why that growth will fall off. One, as Zandi suggested, are those higher interest rates. What he’s saying is that if and when the tax plan creates that new growth, the Fed will raise interest rates, which they took down to near-zero in the Great Recession to boost the economy. Since then, central bankers have slowly inched that rate upward, though it’s still well below where it was pre-recession.

All of which is to say that the Fed is already carefully weighing when to tighten policy, and a burst of new growth from the tax plan could mean the central bank would want to tighten Fed policy sooner.

On top of that, the job market looks good, the stock market looks good, GDP growth has been solid recently — there’s just not a lot of room for improvement. And that initial burst of new demand in the economy won’t last — it will fall off. Other boosts — say, in labor supply or investment — won’t make up for it, according to a report from the Tax Policy Center, a D.C.-based think tank that has been critical of the tax plan.

“I expect it to be beneficial,” said Doug Holtz-Eakin, president of the right-leaning American Action Forum and a director of the Congressional Budget Office under George W. Bush. “I don’t expect it to be very long-lasting, because there’s not very much room to grow there.”

Figures from the Tax Policy Center square with that, predicting that the new tax regime will boost GDP in 2018 by an additional 0.8 percent. But then after that, it would eventually taper off — by 2027, the bill would provide no additional growth.

That drop-off toward the end of the 10-year window is in large part because many of the bill’s provisions expire at the end of 2025.

Were Congress to extend those provisions — assuming there were even the political will in eight years to do that — it could boost the economy. But then, that would cost money. And that cost would come on top of an already steep price tag.

Currently, the plan is projected to cost around $1.5 trillion over 10 years. Adding that much or more to the debt, some economists fear, will hurt the economy by bumping up interest rates. The idea here is that higher interest rates would mean less borrowing and spending throughout the economy.

“The problem with making it permanent is it’s really going to help you in years 9 and 10, but it’s actually going to really hurt you in years 30 through 32,” said Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget, which advocates for smaller deficits and debt. “If you make it permanent, instead of adding $1.5 trillion to the debt this decade, it’s going to add $2 trillion to the debt this decade and then another $2 or $3 or $4 trillion next decade and another $2 or $3 or $4 trillion the decade after that.”

So there’s a good case to be made that there will be initial growth, but that it will disappear — or nearly disappear — in the medium-term.

The tax bill wasn’t just about rates

But there’s more to the tax bill than just tax cuts, Holtz-Eakin of the American Action Forum stresses.

“The more lasting and important contribution are the reforms, as opposed to pure tax cuts,” he said. “The most important thing the bill does is change dramatically the way the U.S. taxes business activity.”

The plan drastically lowers the corporate tax rate — down from a top rate of 35 percent to 21 percent. But there’s another big change it makes on the corporate side: It changes the U.S. from a worldwide system, one in which a company’s foreign and domestic earnings alike are taxed, to a territorial corporate taxation system, in which just domestic earnings are taxed.

This brings the U.S. more in line with other major world economies. Proponents of this policy believe that this helps level the playing field with other countries and encourages more companies to be based in the U.S., among other benefits.

To Holtz-Eakin, this is more important for sustained economic strength than the tax cuts. He believes it will mean modest, but meaningful and lasting growth that will compound over time — well beyond the 10-year budget window.

Still, it’s not clear to everyone that it will be that meaningful.

“Moving to a territorial system is a good idea, but that is really on the margin,” Zandi said. “When they’re making investment decisions, they’re looking at lots of different factors.”

He points to trade and energy policy, as well as where businesses can find the workers they need. In addition, he notes that other nations might find ways to change their tax systems in turn to compete with the U.S.

Put all of this together, and there’s no way to give a firm yes or no that answers this question fully.

The best answer to this question seems to be a highly qualified yes. Yes, the tax bill will likely spur some economic growth. But there’s good reason to think that 1: that growth will be heavily front-loaded, and 2: the longer-term growth change over what the U.S. would have had without the tax plan will be modest, or even minimal.

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How Trump's Corporate Tax Cut Is Playing Out For Wal-Mart

Companies like Wal-Mart say tax cuts are making it possible for them to boost wages. But other economic factors could also be contributing to pay increases.

MICHEL MARTIN, HOST:

This week, Walmart joined a chorus of companies who say the big corporate tax cut is motivating them to raise wages, pay bonuses and make more investments. But that good news story was undercut later in the same day when word trickled out that Walmart is closing 63 of its Sam’s Club warehouse stores and laying off thousands of workers. We’ve asked NPR economics correspondent John Ydstie to join us to sort this out. So, John, thanks for joining us, first of all.

JOHN YDSTIE, BYLINE: Happy to be here, Michel.

MARTIN: Well, Walmart seems to be feeling generous with some of its employees and laying off others. And what role is the tax cut playing in this, if any?

YDSTIE: Well, there’s no doubt that Walmart and many other companies are very happy that the top corporate tax rate was slashed from 35 to 21 percent. It’ll save Walmart billions of dollars a year. And it certainly makes it easier for the company to raise its minimum wage to 11 bucks an hour. But there are other forces at work here that have little to do with the tax cut.

MARTIN: Well, what are those forces?

YDSTIE: Well, the U.S. unemployment rate is down to just over 4 percent, very close to full employment. So Walmart needs to raise wages just to attract and hang onto employees. And there’s evidence that that helps. Walmart boosted wages and training back in 2015. And according to the analysts, that helped them increase same-store sales continuously since then.

MARTIN: Well, that invites the question of why Walmart is closing 10 percent of its Sam’s Clubs, and as we understand it, that that means laying off some 11,000 workers.

YDSTIE: Yeah. Well, even though the overall economy is strong, for traditional retailers, there are challenges like online shopping. Walmart says those Sam’s Club stores were underperforming. The company does say it is going to convert about a dozen of them to e-commerce fulfillment centers, so some of those workers may be rehired.

MARTIN: But as we said earlier, it’s not just Walmart saying the tax cut is motivating them to boost wages and investment. AT&T and Wells Fargo, just to name a couple of companies that people may have heard in the news, are saying the same things or similar things. How should we assess what they’re saying?

YDSTIE: Well, I think in the case of both of them, there are additional factors at play. For one thing, both have a reason to try to curry favor in Washington.

MARTIN: Because Wells Fargo is being penalized by the government for deceiving customers. And President Trump has threatened even more punishments.

YDSTIE: Exactly. So Wells Fargo has an interest in saying the tax cut is the reason it’s boosting wages for its employees, precisely what the president predicted would happen, in order to gain favor with Trump and avoid more penalties. That said, Wells Fargo is also competing for workers in a strong economy, so they might have boosted wages whether there was a tax cut or not.

MARTIN: But what about AT&T?

YDSTIE: We don’t know for sure. But remember, AT&T wants to buy Time Warner, but the Trump administration is blocking that deal in court. So AT&T could be thinking that saying the tax cut motivated the company to pay big bonuses to workers might just get the Trump administration to ease its opposition to the deal.

MARTIN: So the economy is pretty strong right now. Is that the result of these tax cuts?

YDSTIE: Well, business confidence in the U.S. has risen in the past year, partly anticipating the tax cut and also in response to regulatory restraint by the Trump administration. So that may have boosted the U.S. economy a bit, but the economy was already on a solid foundation. And a good deal of the recent pickup is due to the very positive global economic picture, which has little, if anything, to do with U.S. taxes.

MARTIN: That’s NPR economic correspondent John Ydstie. John, thank you.

YDSTIE: You’re welcome, Michel.

(SOUNDBITE OF , “”)

Copyright © 2018 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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Kentucky Gov. Matt Bevin On Requiring Medicaid Recipients To Work

Kentucky is the first state to require Medicaid recipients to work or get job training in order to qualify for aid. NPR’s Scott Simon talks to Gov. Matt Bevin about the new requirements.

SCOTT SIMON, HOST:

Kentucky’s poised to become the first state to require its residents to work, volunteer or prepare for jobs in order to receive Medicaid benefits. This is after the Trump administration announced it would allow states to begin imposing such rules. The changes will be phased in throughout the coming year. We’re joined now by the governor of Kentucky, Governor Matt Bevin, from his office.

Governor, thanks so much for being with us.

MATT BEVIN: Grateful for the opportunity, Scott.

SIMON: And why is this issue important to you?

BEVIN: This matters to me for a couple of reasons. One thing I want to clarify is that this requirement is for those that Medicaid was not originally designed for. Why is it important to me? I’m a person who grew up with no access to this type of health care. I grew up well below the poverty level, never had the access to the health care system until I was an active duty Army officer in my 20s. So it’s a very personal thing. And I recognize that people in those positions don’t need, as Administrator Verma said, to be treated with the soft bigotry of low expectations. She’s exactly right.

SIMON: Have you considered the effect of requiring people to work in areas that, right now, have a high unemployment rate?

BEVIN: Go through any community anywhere, I promise you will see at least one sign where people want an able-bodied person who is not on drugs and will show up on time to apply for and do a job. There are plenty of jobs in America. There are 100,000-plus available in Kentucky right now. And this will start to connect people who want a job and need a job with the jobs that exist.

SIMON: Governor, as I’m sure I don’t have to tell you, Kentucky has one of the highest rates of death from opioid overdoses in the country. What would you do with people who are struggling with addiction and do need help from Medicaid and other services but are probably in no position to work?

BEVIN: Here’s the wonderful thing. These folks will be identified through this requirement. If, in fact, they’re already receiving benefits, they’re going to an office somewhere to get something, they won’t have to go to anywhere new. They will now be given an opportunity to get treatment. We will continue to invest like this state has never invested in helping people with recovery.

SIMON: And what about those who just, in good faith, can’t meet the requirements? Do they get no care, no coverage?

BEVIN: Think about this. The requirements are for people who are able to meet the requirements. For those who cannot because of a mental disability or a physical disability, it does not apply to them.

SIMON: But will some people lose their coverage? Is that is that the bottom line?

BEVIN: Time will tell. I would hope that they do for all the right reasons. If a person gets a job and is now covered through their employer, then they don’t need it anymore. And those that we project that will no longer be needing it will not be needing it because they will actually be making enough money. They don’t qualify, or they will have coverage through their employers.

SIMON: Is that being hopeful? I mean, in – I don’t have to tell you, Governor, that you can make a pronouncement. But three or four months from now, news organizations might be doing stories about people who couldn’t find jobs and have lost their coverage and have nowhere to turn.

BEVIN: It is hopeful thinking, you bet it is. But I’ll tell you what, as Ralph Waldo Emerson once noted, nothing great was ever achieved without enthusiasm. Enthusiasm springs from hope. And why should we wallow in misery in the belief that we don’t have an alternative other than the failure that we already have? You bet it’s hopeful. And the greatness of the human condition is that it’s always been improved by exactly that.

SIMON: The governor of Kentucky, Matt Bevin – thanks very much for being with us.

BEVIN: Thank you, sir.

Copyright © 2018 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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The Week in Movie News: Golden Globes Winners, Black Widow and Kitty Pryde Go Solo and More

Need a quick recap on the past week in movie news? Here are the highlights:

BIG NEWS

Marvel’s Black Widow movie is moving forward: Fans wishing for a Black Widow solo movie are in luck, as Marvel has put the wheels further in motion and hired TiMER filmmaker Jac Schaeffer to write the screenplay. Read more here.

GREAT NEWS

X-Men’s Kitty Pryde is getting a solo movie: Another female superhero based on Marvel Comics is getting her own solo movie, too, as Deadpool director Tim Miller was revealed to be developing a project for X-Men character Kitty Pryde. Read more here.

SURPRISING NEWS

Insidious could cross over with Sinister: Maybe crossovers aren’t that shocking anymore, especially if they involve horror franchises from the same producer, but the news that Insidious and Sinister might be put together is still a pleasant surprise. Read more here.

AWARDS BUZZ

Lady Bird and Three Billboards win big at Golden Globes: One of the biggest awards ceremonies of the season happened this week, as the Golden Globes celebrated Lady Bird and Three Billboards Outside Ebbing, Missouri with Best Picture honors. Find the rest of the winners here and our highlights from the show here.

EXCLUSIVE BUZZ

The influence of James Bond on Black Panther: We talked to Black Panther director Ryan Coogler, who discussed the movie’s 007 influences, its ’70s thriller tone, representation and of course post-credits stinger. Read the conversation here.

COOL CULTURE

The ABCs of Black Panther: Speaking of Marvel’s upcoming superhero movie, tickets for which are now on sale, Screen Rant put together a handy alphabetical guide to Black Panther. Watch it below and see more cool culture inspired by the movie here.

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MUST-WATCH TRAILERS

Teen Titans Go! To the Movies puts cartoon superheroes on the big screen: DC superheroes come in many forms, including the amusing animated versions of the Teen Titans from Cartoon Network, now heading to theaters. Watch its first trailer here:

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Blockers promises a raunchy night out: The first trailer for Blockers shows John Cena, Leslie Mann and Ike Barinholtz doing everything they can, including some very raunchy comedy bits, to keep their daughters from having sex. Watch it here:

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Basmati Blues brings Brie Larson to India: The first trailer for the long-delayed musical rom-com Basmati Blues features Brie Larson as a singing scientist in India. Check it out here:

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and

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Fitness Superstar Shaun T: Keys To Workout Motivation Include Fun — And Selfishness

Shaun T attends the Sweat USA America’s All-Star Fitness Festival at the Miami Beach Convention Center in 2013. At some live events, thousands of people turn out to work out with the fitness superstar.

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In the world of streaming workout videos, Shawn T is like Jay-Z or Mick Jagger. He’s a superstar. Millions of people have done his workout programs. One is called “Insanity.” Another, “Focus T25,” aims to get you in shape in just 25 minutes a day without leaving your house.

In our ever more digital world there are all kinds of apps and other quick ways to fit fitness into your life. But you still have to do the exercise. And in his new book, T is for Transformation, Shaun T tells the story of his life and the lessons he’s learned about finding that motivation.

With his sculpted muscles and abs, Shaun T is the picture of fitness. In his workout videos he’s funny and happy. But it wasn’t always like this.

“The first thing I remember as a kid was being washed in the sink of our west Philadelphia apartment,” Shaun T says. Back then, 40 years ago, he was a toddler named Shaun Thompson. “I was so small, but I soon began to realize that where we lived wasn’t necessarily the best place in the world.”

Shaun T grew up poor and had a rough childhood in a violent neighborhood. The family was on food stamps. And they had so little food he’d sneak bread into his underwear and eat it at night in bed.

Being hungry stays with you. And when he got a scholarship to a state college, that came with a dining hall meal plan card, which meant free food.

“When you give someone who grew up on food stamps a meal card, I could just go and eat and eat. And then when I found out that you can use this food card at Domino’s, late night cravings became a whole new thing. I was like, ‘Whhhhaaat?’ ”

Shaun T gained 50 pounds his freshman year. He didn’t like that. But he says he was too embarrassed to go to the gym, even though he ran track in high school. “I was extremely unhappy with the way that I looked and the way that I felt,” he says.

But he finally got on the treadmill. And he took some dance fitness classes. And as soon as he’d lost just a few pounds, he says he loved how that made him feel. So much so that he switched his major to sports science. And then he went to the manager of the school rec center and told her, “I want to teach a class.”

Shaun T had no experience. But his fellow students liked him. And 90 of them signed up for his first class in the rec center. He turned on the hip-hop song “Space Jam,” from the 1996 movie with Michael Jordan, put it on repeat, and got everyone doing his halfway-thought-out hip hop aerobics routine. The students loved it.

“I was like are you kidding me? This is the most amazing thing. I could teach and have fun, and all of these people are not only doing what I’m doing but most of them were afraid to dance and they’re actually doing it and they’re stepping outside their comfort zone. And I’m looking at these people and I’m like, ‘This is it. I want to do this for the rest of my life.’ ”

And that’s what Shaun T has done. First classes, at small workout studios. He taught a class for workers at a nuclear power plant in New Jersey. He’d teach anywhere he could. Later he moved to LA and started doing videos. Today, the company that distributes his workouts, Beachbody LLC, says Shaun T has sold more than $1 billion worth of fitness videos.

Shaun T attends the 20th Annual Arthur Ashe Kids’ Day at USTA Billie Jean King National Tennis Center in 2015 in the Queens borough of New York City.

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Shaun T says to stay motivated, it can help to mix it up. For example, sign up for a dance class or a basketball league. He does his own workouts, “but I also play tennis. But I also get my friends I’m like, ‘Yo, let’s play volleyball today.’ It doesn’t always have to be the same thing. Like create it for yourself and it will be so much fun.”

And he says, focus on the fun, not about how much you weigh. “My goal for people out there is just just do things that make you feel good. ‘Cause the weight will come off but the happiness is what’s most important.”

Of course, it can often be more complicated than that for people, including Shaun T. Growing up in that violent neighborhood, he says he suffered abuse from his stepfather and went through things that, later in life, it took him years of therapy to really work through and understand. He encourages others to consider doing the same if they think they might have unresolved baggage holding them back from their health and fitness goals, or other goals for that matter.

“You get stronger by unpacking the baggage, not by packing it into the closet,” he says. But he adds, “It’s just really important for people to understand that your biggest struggles are also the motivators to your biggest strengths.”

Shaun T’s struggles back then got him to do something that took courage when he was 14 years old and about to start high school. He decided to leave his family and go live with his grandparents in New Jersey. His grandfather was a former boxer and a minister and this family was stable and loving. It was a big change and it made a big difference. “I didn’t start living until I was 14 years old,” Shaun T says. “From that point forward my grandparents were my angels, they were just like the best ever.”

In his book, Shaun T says even if it’s in a less dramatic way, changing the people around you can make a difference. If most of your friends are couch potatoes, he recommends spending more time with people who exercise and who will support you and encourage you to live a healthier life.

On a more counterintuitive note, he says, “selfishness gets a bad rap.” He says some people spend so much time doing things for other people — their family, their friends — and they feel guilty taking any time at all just to take care of themselves. He says obviously don’t abandon your loved ones, but you’ll be a happier person if you take time the time you need. He says it’s usually OK to take 25 minutes to do that workout. “Be selfish, because all the people in your life will benefit if you are,” he says.

Of course when it comes to health and fitness, what you eat is important too. Shaun T says one of those giant sugar-frosted cinnamon buns has so many calories you’d have to work out like a maniac for two hours to burn it off. But there too he says, enjoy yourself. Eat healthy 85 percent of the time and enjoy some pizza or a doughnut the rest of the time. But, he says, cut the doughnut in half.

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New Rules May Make Getting And Staying On Medicaid More Difficult

Seema Verma, administrator of the Centers for Medicare and Medicaid Services, at a White House press conference in May. More people moving off Medicaid, she says, would be a good outcome.

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Kentucky got the green light from the federal government Friday to require people who get Medicaid to work. It’s a big change from the Obama administration, which rejected overtures from states that wanted to add a work requirement.

Medicaid’s chief federal officer is Seema Verma; her home state of Indiana submitted plans for a work requirement last year, and the approval letter could come any day now. Under the proposal, people would have to average 20 hours a week of work or another qualifying activity — such as volunteering or getting an education — to get Medicaid.

The goal is to increase employment among Medicaid recipients. But Sara Rosenbaum, a professor of health law and policy at George Washington University, says there’s a problem with that — most people on Medicaid are already working, or looking for work. Or they’re caring for a child or family member, or they’re sick or disabled.

Many of those people would be exempt from a work requirement, and states could also make some allowances for people battling addiction. When you consider all those exemptions, says Rosenbaum, “There is this very, very tiny slice of [of the population] who can work and simply choose not to work and apply for public assistance.”

And even if states create programs that help people find jobs, and provide things like childcare and transportation, Rosenbaum says, there’s no evidence that they would lead to more employment. And those programs are expensive.

“If you do a work program, it costs real money,” she says, “and the federal government has said, ‘we won’t pay any of those costs.’ “

What’s more likely, Rosenbaum says, is that states will basically say, ‘Get a job on your own, or get off Medicaid.’ “

And what that does, she says, is create a hurdle for everybody on Medicaid. People who are working are going to have to prove they are employed, so even people with jobs could stand to lose their insurance because of red tape. In fact, the state of Indiana’s own projections show that with a work requirement, Medicaid will cover fewer people and cost more.

Adam Mueller is an attorney at Indiana Legal Services, which helps people navigate that state’s Medicaid program. He says people already lose coverage because the program can be confusing, and there are administrative errors.

“Somewhere along the way, paperwork gets lost; there’s a miscommunication,” he says, “Folks have sometimes had difficulty proving something as easy as residency.”

And people on Medicaid often deal with crises – they may move a lot, or change phone numbers, which makes it hard to keep track of paperwork. Adding a work requirement on top of all that, Mueller says, would make staying enrolled even harder.

“There are a lot of things that can trip folks up, and that could lead to falling through the cracks,” he says.

Judith Solomon, of the Center for Budget and Policy Priorities, points out that expanded Medicaid helps some employers, too.

“We have an economic structure where there are people whose employment doesn’t provide health care,” she says.

If employees lose Medicaid, get sick and can’t make it to work, she says that’s bad for business.

Verma told reporters during a conference call Thursday that the requirement is supposed to help people.

“People moving off of Medicaid is a good outcome,” she said, “because we hope that that means they do not need the program anymore, that they have transitioned to a job that provides health insurance or that they can afford insurance on their own. This policy helps people achieve the American dream.”

But advocates say the main purpose of Medicaid is to provide health insurance, not increase employment. And until now, the federal government agreed.

Susan Jo Thomas heads Covering Kids and Families of Indiana, which advocates for health coverage in the state. Under Medicaid’s new management, she says, the philosophy surrounding work requirements has changed.

“I don’t know if it jibes with my view of Medicaid, but my view of Medicaid now is irrelevant,” she says. “It’s what Seema Verma and the administration and the folks who are at CMS decide.”

Thomas says she is taking more of a wait and see approach — the details of the work requirement have yet to be ironed out. She says if too many people lose insurance, she’ll be raising concerns with the state.

This story is part of NPR’s reporting partnership with Side Effects Public Media, WFYI and Kaiser Health News.

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Facebook Rolls Out New Plan For News Feed: More Posts From Friends And Family

Facebook CEO Mark Zuckerberg laughs as he meets with a group of entrepreneurs and innovators during a roundtable discussion at Cortex Innovation Community technology hub, in November, in St. Louis.

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Facebook CEO Mark Zuckerberg announced Thursday that the social media giant would begin emphasizing more “meaningful” content on users’ feeds – giving greater weight to posts from friends and family and less to businesses, brands and media.

In a long Facebook post of his own, Zuckerberg stressed that the social media platform — which has more than two billion active users worldwide — was created “to help people stay connected and bring us closer together with the people that matter to us.”

While the move was anticipated, Thursday’s announcement filled in more of the details.

“The research shows that when we use social media to connect with people we care about, it can be good for our well-being. We can feel more connected and less lonely, and that correlates with long term measures of happiness and health,” Zuckerberg wrote. “On the other hand, passively reading articles or watching videos — even if they’re entertaining or informative — may not be as good.”

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The changes come as the company has faced increased criticism for the way its algorithms have allowed the spread of targeted disinformation aimed at disrupting U.S. elections, as well as more general criticisms that over-use of social media can contribute to depression.

Zuckerberg writes that he’s directed the company’s product teams to shift “from focusing on helping you find relevant content to helping you have more meaningful social interactions.”

As Wired notes, “The upshot: The newsfeed algorithm will now give less weight to the popularity of posts and more weight to posts that encourage users to interact and comment. One of the big criticisms of Facebook in the past 18 months is that the content we see in the newsfeed is driven too much by Facebook’s obsession with persuading people to spend as much time as possible on Facebook. The more time people spend in the newsfeed, the more ad revenue Facebook makes. That may be good for Facebook, but, according to an increasingly loud chorus of critics, it’s not so good for humanity.”

According to The Associated Press, “The move will not affect advertisements – users will continue to see the same ads they have before, ‘meaningful’ or not. But businesses that use Facebook to connect with their customers without paying for ads will also feel the pain.”

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Movie News: John Williams Wants to Compose 'Star Wars: Episode IX'; Watch First 'Teen Titans Go! To the Movies' Teaser

John Williams

Star Wars: Episode IX: John Williams (above), who has composed the musical scores for all eight episodes in the primary Star Wars cinematic universe, says he has informed director J.J. Abrams that he would like to compose the music for the untitled ninth episode: “I would very much like to complete that.” Williams will definitely be composing theme music for Han Solo in Ron Howard’s upcoming Solo: A Star Wars Story, which is set for release on May 25. [Variety]

The Hunger Games: Mockingjay - Part 1

The Goldfinch: Jeffrey Wright (The Hunger Games: Mockingjay – Part 1, above) is in negotiations to join the cast of The Goldfinch. If things work out, he will portray Hobie, who plays an important role in the life of lead character Theo (Ansel Elgort), the survivor of a terrorist bombing who goes on to lead an amazing, tumultuous life. It’s based on a novel by Donna Tartt; John Crowley (Brooklyn) will direct. [Variety]

Baywatch

Patty Hearst: Yahya Abdul-Mateen II (The Greatest Showman; Baywatch, above) will star opposite Elle Fanning in an untitled drama about heiress Patty Hearst, who was kidnapped in the 1970s by a terrorist group and then brainwashed into becoming a member. The actor will play the founder and leader of the terrorist group. James Mangold (Logan) will direct. [Deadline]

Teen Titans Go! To the Movies

Teen Titans Go! To the Movies Trailer: The funny first trailer for Teen Titans Go! To the Movies pokes fun at itself and other DC movies. Scott Menville, Hynden Walch, Greg Cipes, Khary Payton, and Tara Strong reprise their voice roles from the small-screen series, with the addition of Will Arnett and Kristen Bell. The animated adventure will open on the big screen on July 27. [Movieclips]

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Head Of Medicaid Directors On States Imposing Work Requirements For Recipients

Matt Salo, executive director of the National Association of Medicaid Directors talks with NPR’s Ari Shapiro about the Trump administration’s move to allow states to impose work or community engagement requirements on Medicaid recipients.

ARI SHAPIRO, HOST:

Our next guest has been fielding a lot of questions since the administration gave the go-ahead for Medicaid work requirements. Matt Salo is executive director of the National Association of Medicaid Directors. Welcome to the program.

MATT SALO: Thank, you Ari.

SHAPIRO: Some states have been trying to implement this for several years, wanting to cut off Medicaid unless certain recipients were employed or in school. Were you surprised when the letter went out from the Trump administration saying, OK, you can now apply to do this?

SALO: No because in fact we had Seema Verma, as was referenced earlier, announce at our annual meeting back in November that this was coming and this was clearly a priority for the administration. And it was in response to the types of requests that had been put forward by states like Kentucky, Indiana, Wisconsin, Arizona and others for a couple years now. So we knew this was coming.

SHAPIRO: How much leeway will individual states that get this waiver have to determine what counts as able-bodied or what counts as employment or education?

SALO: I think with all waivers or innovations of this type, you’re going to see a pretty broad variety of state approaches. But what I think is really important here is if you look at the guidance that came out this morning, it does lay out some very, very sort of strict parameters in terms of the types of things that can count as work. And as we’ve talked about, there’s – it’s not just work. It’s lots of other things – volunteering and child care, et cetera. And there are lots of parameters they’re putting out in terms of who should be exempted for a variety of reasons.

And I think what you’re really going to see from a lot of the states who are doing this is this is a tool really to try to figure out, of the population, of the working-age adult population, you know, are they already engaged in the community? And if not, how do we help them get there? How do we provide them with the supports and services that get them on that path?

SHAPIRO: So far we know of 10 states that want to do this. Do you expect that there are many more waiting to see how this works out that might jump in if it goes well?

SALO: I think so. I think, you know, most states or all states knew that the Obama administration was not going to allow this. And you know, there’s a certain amount of work, to be honest, that goes into putting together the parameters for this…

SHAPIRO: You mean just paperwork.

SALO: …Trying to figure out, what do the systems look like? How do you do this? And other states are going to want to know, you know, can this survive a legal lawsuit challenge and…

SHAPIRO: Well, I was also going to ask, do you expect to see many legal challenges to this policy?

SALO: Sure, sure. I mean, we’ve already heard from some of the legal groups – National Health Law Program, et cetera – that they will probably file a lawsuit the minute that the first state gets approved. So that will come. That’s not a surprise. And I think what you’ve seen in the guidance is a pretty clear attempt to structure a policy that will be able to surmount some of those legal challenges.

SHAPIRO: This is happening as the United States struggles with the opioid epidemic. And Medicaid covers addiction treatments. What risks and challenges do you see with implementing these work requirements as this opioid crisis continues?

SALO: Well, I think the – you know, I always look to people like Governor Kasich in Ohio, who has been as articulate and outspoken and passionate about both the Medicaid expansion and its role in treating the opioid epidemic, you know? And what he has said is, look; I think work is the best social program, but for people who are struggling with the opioid epidemic, they’re never going to be able to get a job until we can get them on the path to recovery.

And so I think that’s – for these things to really be successful, they’re going to employ some version of that – you know, trying to figure out who it is that’s struggling with opioid or any other substance use disorder and trying to figure out – not shaming them or wagging our finger but saying, you need help; how do we get it to you, and how do we get you on that path to recovery so that you can work or be engaged in the community in other ways?

SHAPIRO: Just in the minute we have left, I wonder how much of an experiment this is. I mean, if a number of people lose Medicaid coverage, could it end up costing a state more if those people aren’t getting preventive care are going to the emergency room more?

SALO: I don’t think people are really looking at it in a dollars and cents perspective like that. They’re really looking at this as this is an approach to try to improve the health and well-being of this population. And you know, the dollars and cents, you know – people know this is going to take money to build this out, to track work requirements. That’s not an issue. It’s the policy behind it that’s really trying to get at improving health and well-being for people.

SHAPIRO: Matt Salo is executive director of the National Association of Medicaid Directors. Thanks for joining us.

SALO: Thank you.

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