Deep Medicaid and SNAP Cuts Accompany Tax Breaks
Despite media attention on tax relief and wage benefits, independent analysts emphasize that these perks are financed largely by cutting core social safety net programs. The Tax Foundation underscores that while deductions for overtime, tips, auto loans, and larger standard exemptions do boost take-home pay—especially for middle-income earners—these gains come paired with substantial cuts to Medicaid and SNAP funding.
Tax Foundation: State Implications of the One, Big, Beautiful Bill, Tax foundation: The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act

SNAP Program in Michigan Faces Severe Reductions
Bridge Michigan reports the federal government plans to slash $285 billion from SNAP over the next decade, impacting roughly 1.5 million Michigan residents who rely on food assistance. Work requirements are getting stricter, raising barriers for seniors, parents, and disconnected adults, which will test both food security and the ability of state budgets to sustain the program.
Bridge Michigan

Medicaid Cuts Threaten Health Access and Hospital Stability
According to the Tax Foundation, the bill includes dramatic Medicaid reductions including federal match rate drops and aggressive new eligibility requirements. States like Michigan would not only see decreased enrollment due to mandated work rules, but also face pressure from reduced provider tax credits—which could risk funding for rural hospitals.

Bridge Michigan elaborates that nearly 200,000 Michiganders could lose coverage, triggering concerns about uncompensated care, hospital shutdowns, and reduced access to medical services. Michigan’s Health & Hospital Association sounded the alarm, warning of serious impacts to rural communities as hospitals struggle to stay afloat.
Tax Foundation, Bridge Michigan, MHA

Critics: Benefits Lean Toward High-Income Earners
Criticism is growing that the structure of the bill favors wealthier individuals. Analysis by the Institute on Taxation and Economic Policy found the top 5% of Michigan taxpayers receive about 40% of total benefits, while low-income families feel the brunt of public service reductions. The claim that deductions phase out at relatively moderate income levels—like $100K for car interest and $150K for tips and overtime—underscores the argument that middle- and upper-income households benefit disproportionately.
Bridge Michigan, Wikipedia

Weighing Gains Against Real-Life Impacts
Nonpartisan sources like KFF, PBS, and AP echo these concerns nationally. KFF notes the package could reduce federal Medicaid spending by nearly $800 billion, and 11–12 million Americans may lose health coverage. PBS reports Senate amendments seeking deeper Medicaid cuts tied to the same legislative framework. AP also confirms the inclusion of massive SNAP and Medicaid rollbacks totaling approximately $1.2 trillion, highlighting potential harm to vulnerable groups.
Maryland Daily Record,

Bottom Line: Who Really Benefits?
While deductions tied to tips, overtime, auto loans, and senior savings do direct financial relief to middle-income workers, the long-term strategy relies heavily on cutting vital assistance programs. Michigan stands to lose substantial safety net funding. The critics’ warning – that these moves tilt benefits toward the well-off while reducing support for the economically vulnerable – is firmly backed by objective, non-governmental reporting.

The One Big Beautiful Bill thus represents a stark trade‑off: visible tax breaks paid for by scaled-back Medicaid and SNAP. For many Michiganders, the damaging effects on healthcare access and food security may overshadow any incremental boosts to take-home pay.