Sahil Kapoor
Appearances
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
It's likely to cost multiple trillions of dollars. Just to give you some context, the extension of the Trump tax cuts of 2017 alone cost $4.5 trillion. over 10 years. That's a huge amount of money. Now, the caveat to all of this is that conservative hardliners, most notably in the House, are insisting on steep spending cuts as a price of admission for them to be able to vote for this bill.
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
Now, they say they want to target waste, fraud, and abuse. They haven't said what specifically that means. Because you're not going to cut waste, fraud, and abuse and get to the budget targets they're talking about without serious Medicaid cuts.
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
In order to get meaningful savings out of Medicaid, you will impact beneficiaries. You will impact hospitals who rely on payments. There's just no way around it.
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
The conflicts between the conservative hardliners and the moderates are very real. Conservative hardliners have said for a long, long time that they want to reduce the debt. And then the beef the hardliners have is that they think the moderates aren't serious about it, that they cave, that they walk away.
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
The moderates believe the hardliner don't understand how difficult it is to get elected in their district. When they have Democrats breathing down their necks and accusing them of throwing people off Medicaid, that's all the stuff that Democrats are going to say.
Apple News Today
Why Nike is a cautionary tale when it comes to tariffs
My guess is they will be able to pass something that averts default and extends most of the Trump tax cuts. But will they be able to limit the amount that it adds to the debt? I doubt it. Will they be able to meet the targets that conservative hardliners want? I think it's extremely unlikely.