Companies that previously made ridiculous profits by taking advantage of the American people are no longer going to be able to get away with that–not while Donald Trump is the President.
According to MSN, the White House is making a new proposal to overhaul the US food stamp program. Specifically, it is going to charge a small fee to retailers who accept food stamps – preventing them from making such massive profits by raising their prices on food stamp items. These corporations are going to have to price their goods fairly from now on.
In the new proposal, which strives to help the poorest households in America, is a provision that has shocked the grocery industry. The provision is a new fee that the White House wants to charge retailers who are enrolled in the food stamp program–known as the Supplemental Nutrition Assistance Program (SNAP).
The Office of Management & Budget said that the fee would be determined when stores enroll in the program and would vary depending on the type of retailer. However, the OMB estimates that the fee would generate $2.4 billion in revenue over the next ten years.
“Although a small number of stores may choose to leave the program rather than pay the fee, we do not expect that this will affect access to authorized stores,” one official said.
Beyond this, Trump is looking at a total of $191 billion in budget cuts with regard to the food stamp program, which includes tightening the work requirement to qualify for the benefits.
Budget Director Mick Mulvaney said on Capitol Hill that the current system “is a formula for waste and growth rates and costs that are simply unsustainable. The total spending should not go down. Or if it does, it goes down because of efficiencies and not because of reductions.”
As can be imagined, there are many critics of the proposal–including many in the grocery industry. Many big companies such as Wal-mart make billions off the 48 million Americans who are living near the poverty line. These companies will often raise the price of food stamp items to make more money off of the government. The SNAP program means significant business for these companies.
Even worse, the industry has been vocally opposed in the past to revealing what portion of their income comes from food stamp sales – a lack of transparency that is troubling, to say the least.
President Trump is going to start charging a small fee to retailers who accept food stamps. Is it time to overhaul the food stamps program?
An article from Slate said it best with this quote: “It’s a paradox that the more people are struggling to get by, the more valuable food stamps become for business.”
Rep Michael Conway (R-TX), and Sen. Pat Roberts (R-KS), are amongst those in the GOP who are against this new measure, saying that imposing this fee on companies would hurt the poorest Americans in the long run. However, it appears to many Americans that some these Republicans might be more concerned about promoting big business interests rather than the well being of the American people. The fiscal irresponsibility in the abuse of taxpayer dollars being whittled away as gains for the profiteers in this program are troubling to most Americans.
Thankfully, President Trump isn’t the type of person to let big businesses make profits in an un-American way. This is going to have to stop.