All Reports by Date
2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997/1996
-
Reinstatement of Pay-As-You-Go is a Welcome Step Toward Fiscal Responsibility
December 20, 2006
House and Senate Democratic leaders have pledged to reinstate the “Pay-As-You-Go” rule early in the 110th Congress. Such a rule, which was in effect in the 1990s, helps to enforce fiscal discipline by requiring that any tax cut or increase in entitlement spending be offset by an increase in other taxes or reduction in other entitlement … -
Tax Cuts and Continued Consequences
December 19, 2006
With some states contemplating tax cuts in 2007, this is a useful time to examine the effects of the last major round of state tax cuts, during the 1990s. Some 44 states enacted tax cuts in the middle and late 1990s. Many states were restrained in their tax-cutting, but a few were not. During that period, six states reduced their annual … -
The Current Services Baseline: A Tool for Making Sensible Budget Choices
December 14, 2006
The single most important document produced by a state government each year, and one that receives close public scrutiny, is the state budget. It is both a financial plan for the state and a description of the policies the state intends to pursue in the future. Often the first question asked by budget decision-makers and budget watchers … -
From Surplus to Deficit
December 13, 2006
The adjournment of the 109th Congress provides an opportunity for a broad look at the budget legislation enacted since a new Administration and Congress took office at the start of 2001. This review finds that the national debt at the end of fiscal year 2006 (which ended September 30) was nearly twice as large as it would have been if Congress had left … -
Administration Policy Change Threatens Health Care Coverage for Poor Infants
Revised December 11, 2006
Since 1984, federal Medicaid law has required that states provide one year of automatic Medicaid eligibility to babies whose mothers are sufficiently poor that the baby’s birth was covered by Medicaid.[2] For the past 22 years, these babies have been able to get check-ups and other health care services that can be … -
Fourteen States Face SCHIP Shortfalls This Year Totaling Over $700 Million
December 11, 2006
New estimates, based on the latest available data, show that 14 states face federal funding shortfalls this year in the State Children’s Health Insurance Program. These states lack sufficient federal funding to maintain current enrollment levels through the end of fiscal year 2007. The shortfalls in these states total more than … -
Congress Expands High-Income Tax Shelters, Drops Children’s Health Care from Final "Tax Extenders" Bill
December 7, 2006
Revise December 8, 2006 CONGRESS EXPANDS HIGH-INCOME TAX SHELTERS, DROPS CHILDREN’S HEALTH CARE FROM FINAL "TAX EXTENDERS" BILL In closed-door negotiations on the “tax extenders” package, bipartisan House and Senate negotiators added an expansion of Health Savings … -
Last-Minute Addition To Tax Package Would Make Health Savings Accounts More Attractive As Tax Shelters For High-Income Individuals
Revised December 7, 2006
As part of the last-minute deal making today on the “tax extenders” package, House and Senate negotiators have agreed to include an expansion of Health Savings Accounts that would make these accounts more lucrative as tax shelters for high-income individuals. The HSA expansion is identical to legislation (H.R. 6134) … -
New Provision in “Tax Extenders” Bill Would Make Health Savings Accounts More Attractive as Tax Shelters
December 7, 2006
In closed-door negotiations on the “tax extenders” package, bipartisan House and Senate negotiators agreed to include an expansion of Health Savings Accounts (HSAs) that would make these accounts more lucrative as tax shelters for high-income individuals. The HSA expansion, which … -
A Tough Recovery By Any Measure: New Data Show Consumer Expenditures Lag for Low- and Middle-Income Families
November 28, 2006
Data on wages, compensation and income paint a disappointing picture of the current economic expansion, especially from the perspective of low- and middle income families. By most measures, real incomes were lower in 2005 than in the recession year of 2001, and real wages, after rising through mid-2003, fell consistently until very recently. These unfortunate trends have occurred amid … -
Fact Sheet: Most Americans Treading Water or Falling Further Behind, Consumption Data Show
November 28, 2006
Widely reported data on Americans’ incomes paint a disappointing picture of the current economic expansion, especially for low- and middle-income families. By most measures, Americans’ real (inflation-adjusted) incomes in 2005 were still below their level in the recession year of 2001. Less-well-known data on consumer spending — … -
African American and Latino Families Face High Rates of Hardship
November 21, 2006
A range of measures suggest that many black and Latino families face hardship of some type. Between one-fourth and one-third of families with children headed by blacks or by Latino citizens experience overcrowded living conditions, difficulties paying for food, or lack of needed medical care. Hardship rates rise further — to as many as half of black families with children … -
Press Release: As Holidays Approach, Data Show High Rates of Hardship for African Americans and Latinos: Government Survey of Hardships Slated for Elimination This Year
November 21, 2006
A new Center analysis of data on hardships faced by American families — based on an annual survey the Administration plans to eliminate this fiscal year — shows that between one-fourth and one-third of all African American and Latino citizen families experience difficulty affording food, lack needed medical care, and/or live in … -
Together, State Minimum Wages and State Earned Income Tax Credits Make Work Pay
Revised November 20, 2006
In recent years, federal policies aimed at ensuring adequate income for working families have not kept up with inflation, leaving many working families struggling to make ends meet. The particular culprit is the federal minimum wage, which has not been adjusted for inflation since 1997. Other policies such as the federal Earned … -
Medicaid Commission Recommendations Raise Serious Concerns
November 16, 2006
On November 8, the Medicaid commission created by the Administration last year released a “chairman’s mark” setting forth broad recommendations designed to “promote Medicaid’s long-term fiscal sustainability, while also emphasizing quality of care.” The commission will consider these recommendations at its final meeting on November 16 and 17. In … -
Medicaid Costs Are Growing More Slowly Than Costs for Medicare or Private Insurance
November 13, 2006
Are Medicaid expenditures growing “out of control”? This paper reports new data showing that Medicaid expenditures did not grow at all in fiscal year 2006 and are expected to grow only modestly in 2007. There are good reasons to be concerned about projected increases in Medicaid expenditures over the long term, since health … -
State Budgets: On the Edge?
Revised November 8, 2006
States are in considerably better fiscal shape than they have been since 2001. State revenues have grown rapidly over the last year, in marked contrast to the sluggish growth or declines in revenues between 2001 and 2004. For many states, however, a return to budget deficits may not be long in coming. Fiscal conditions appear unstable in at least 24 … -
Fixing the Housing Voucher Formula: A No-Cost Way to Strengthen the “Section 8” Program
November 1, 2006
Congress will reconvene in mid-November for a “lame duck” session to finish work on the nine unfinished appropriations bills for fiscal year 2007. Among the bills to be completed is the Transportation-Treasury-HUD bill, which includes funding for most federal housing programs. A key item in the bill is the appropriation for … -
State Fact Sheets: The Impact of Competing Housing Voucher Formulas on Each Public Housing Agency
November 1, 2006
State-specific fact sheets which show the impact of the competing formulas on each public housing agency in the state are provided through the links below. Alabama Kentucky … -
Basic Questions and Answers About the Deficit
October 30, 2006
1. How big is the deficit? In fiscal year 2006, which ended October 1, the federal deficit was $248 billion, meaning the government spent $248 billion — or 10 percent — more than it collected that year. Put another way, this means that for every $10 of taxes the U.S. government collected last year, it spent $11 to … -
Policy Points: The 109th Congress' Track Record on the Budget
Updated October 27, 2006
The 109th Congress took already large projected budget deficits and passed legislation that will make them larger. The legislation increased projected deficits from 2005 (the year the Congress convened) through 2011 (when the current five-year budget window ends) by a total of $535 billion. Moreover, the budget deterioration over the past six fiscal years — 2000 to … -
Policy Points: The Phantom Federal Revenue “Explosion”
Updated October 27, 2006
The final budget figures announced by the President on October 11 forecast higher revenues and a lower deficit for fiscal year 2006 than OMB and CBO had projected earlier in the year. The Administration has greeted this news as evidence that its tax cuts are “working,” by … -
Statement by Robert Greenstein on the Commerce Department’s New GDP Figures
October 27, 2006
Today's announcement of a marked slowdown in recent growth follows upon Labor Department figures issued earlier this month showing that job growth has slowed significantly in 2006. These figures contribute to the mounting evidence that the economy has performed relatively poorly during the … -
How Will the Child Nutrition Reauthorization Affect Food Stamp Program Operations?
October 26, 2006
On June 30, 2004, the President signed into law, the Child Nutrition and WIC Reauthorization Act of 2004 (P.L. 108-265). While the legislation focuses primarily on the child nutrition programs, it does amend the Food Stamp Act and will have some impact on Food Stamp Program operations. State food stamp agencies will now be … -
A Response to the Independence Institute’s Attack on "The Real Story Behind TABOR” Video
October 23, 2006
In September of 2006, the Independence Institute, a conservative think tank from Colorado, issued a paper entitled, “In TABOR Benefits Colorado’s Citizens: A response to misleading video.” This paper criticizes a video released by CBPP in November 2005 (“The Real Story Behind TABOR”: quicktime | windows media) that details … -
A Rising Number of State Earned Income Tax Credits are Helping Working Families Escape Poverty
Revised October 20, 2006
An Earned Income Tax Credit is a tax reduction and a wage supplement for low- and moderate-income working families. The federal government administers an EITC through the income tax. So do many states. States that enact EITCs can reduce child poverty, increase effective wages, and cut taxes for families struggling to make ends meet. … -
Coverage of Parents Helps Children, Too
October 20, 2006
The nation has made an important commitment to reducing the number of uninsured children. Over the past decade, the creation of the State Children’s Health Insurance Program (SCHIP) and related changes made by states in their Medicaid programs have boosted children’s enrollment and led to a marked reduction in the … -
Appropriations for 2006
Revised October 13, 2006
Congress completed action on the regular appropriations bills for fiscal year 2006 on December 21, 2005, after imposing a one-percent across-the-board cut on all funding except that for veterans or emergencies. The one-percent cut is in addition to the specific reductions or increases otherwise provided by the 2006 bills.… -
Recent Action by Congress Sets Up Larger Appropriations Cuts in Lame-Duck Session
October 13, 2006
As a result of action Congress took before adjourning for the elections, widespread cuts in domestic appropriated programs are likely to be made during Congress’ lame-duck session (or early next year, if Congress fails to complete action on appropriations for fiscal year 2007 in November or December). Congress shifted $5.3 billion that Senate … -
Public Housing Squeezed Between Higher Utility Costs and Stagnant Funding
October 11, 2006
The nation’s public housing units provide affordable homes to about 1.1 million low-income households, approximately half of which are headed by people who are elderly or have disabilities. The local housing agencies that administer these units are required by federal law to rent them to low-income families at rents the families can afford. Those rents are often inadequate to … -
Deficit Announcement Masks Bigger Story
October 11, 2006
On Wednesday, October 11, the Treasury announced the final deficit figure for fiscal 2006. That figure is $248 billion. This figure is $42 billion lower than the $290 billion deficit that the Office of Management and Budget estimated on July 11, which itself was lower than the deficit estimates that OMB and CBO issued last winter.[1] … -
Statement of Robert Greenstein in Response to Announcement of the 2006 Deficit Figure
October 11, 2006
"The announcement seems like good news, but it's more of a temporary blip than real progress. The improvement in the deficit may not extend even beyond this year, and the long-term outlook remains bleak. Despite Administration assertions, the evidence indicates this temporary improvement has … -
Tax Cuts on Layaway
October 10, 2006
State governments face major fiscal challenges in the next few years. They will need adequate revenue bases to tackle those challenges. But a number of states in 2006 cut taxes deeply without identifying how the tax cuts will be financed. They could do this, despite balanced budget requirements, because they … -
Double Jeopardy for Local Services Under TABOR
Revised October 5, 2006
Proponents of Maine’s TABOR (Taxpayer Bill of Rights) — a ballot initiative that would place strict spending limits on state and local governments — have been marketing this proposal as a property tax relief package.[1] This is false advertising: TABOR would not create a sustainable reduction in property taxes. … -
Fact Sheet: Criticisms of Maine TABOR Paper Inaccurate
October 4, 2006
On October 3, the Maine Heritage Policy Center issued a press release calling “Double Jeopardy for Local Services Under TABOR,” a recent CBPP analysis of Maine’s TABOR proposal, “inaccurate and flawed.” Unfortunately, Heritage provided inaccurate and misleading … -
Press Release: Maine’s Proposed “TABOR” Likely to Cause Property Tax Increases
October 3, 2006
Maine’s property taxes would not necessarily be lower — and are more likely to increase — if voters adopt the proposed Taxpayer Bill of Rights (TABOR) that is on the ballot in Maine this November, according to a new report, “Double Jeopardy For Local Services Under Tabor,” released today by the Maine Center for … -
New Developments In Health Savings Accounts
Revised September 28, 2006
On September 27, the House Ways and Means Committee approved H.R. 6134, which would make Health Savings Accounts (HSAs) more attractive as tax shelters for high-income individuals. Ways and Means Chairman Bill Thomas (R-CA) stated that the bill could be enacted before the 109th Congress adjourns. The bill is particularly disturbing … -
Is Medicaid Responsible for the Erosion of Employer-Based Health Coverage?
September 22, 2006
The Census Bureau recently reported that employer-sponsored health insurance coverage in the United States has continued to erode. Between 2000 and 2005, the percentage of Americans with job-based insurance slipped from 63.6 percent to 59.5 percent. Michael Cannon, director of health policy studies at the Cato Institute, has blamed … -
Survey Indicates House Bill Could Deny Voting Rights to Millions of U.S. Citizens
September 22, 2006
On September 20 the House passed a bill (H.R. 4844) that would, starting in 2010, effectively deny the vote to any U.S. citizen who cannot produce a passport or birth certificate (or proof of naturalization). Although the bill’s supporters present it as a measure intended to prevent non-citizens from voting, the … -
GAO Study Confirms Health Savings Accounts Primarily Benefit High-Income Individuals
September 20, 2006
A groundbreaking new study by the Government Accountability Office (GAO) demonstrates that Health Savings Accounts (HSAs) — tax-favored savings accounts attached to high-deductible health insurance plans established under the 2003 Medicare drug law — are heavily skewed toward affluent individuals. The GAO findings also … -
CBO Analysis Finds Increased Revenues Would Offset Increased Entitlement Costs under Senate Immigration Bill
September 15, 2006
The immigration bill passed by the U.S. Senate would affect the federal budget by increasing both the number of legal immigrants qualifying for federal entitlement programs and the number of immigrants filing tax returns and paying income and payroll taxes. On August 18, the Congressional Budget Office (CBO) issued a new … -
House Proposal to Reform Earmarks Employs Double Standard, Largely Exempting Earmarks Packaged as Special Interest Tax Breaks
September 14, 2006
The House is about to consider a change in its rules that would require any committee that includes an “earmark” in legislation to report the name of the Member who sponsored the earmark.[1] One aspect of this proposal jumps out: while earmarked funding would be subject to this rule, earmarked special-interest tax breaks would be exempt from the rule, except for tax breaks that … -
The Illusion of Choice: Vulnerable Medicaid Beneficiaries Being Placed In Scaled-Back “Benchmark” Benefit Packages
September 14, 2006
The Deficit Reduction Act, signed into law in February 2006, permits states to vary the benefit packages they offer to some groups of Medicaid beneficiaries.[1] States can require most children and parents to enroll in new “benchmark” benefit packages that do not provide all the benefits covered by regular Medicaid. … -
Documenting Citizenship and Identity Using Data Matches
September 1, 2006
Under the Deficit Reduction Act of 2005 (DRA), U.S. citizens must document their citizenship and identity when applying for Medicaid or renewing their coverage. The new requirement, which took effect on July 1, could jeopardize the health coverage of substantial numbers of eligible citizens who are unable to secure the required … -
Policy Points: Whose Recovery? Labor Day 2006 Finds Many Americans Not Sharing in the Growing Economy
September 1, 2006
Government data issued this week — from the Census Bureau on poverty, incomes, and health coverage and from the Commerce Department on the shares of national income going to workers and corporations — provide fresh evidence that many middle- and lower-income Americans are not sharing … -
Poverty Remains Higher, and Median Income for Non-Elderly is Lower, Than When Recession Hit Bottom: Poor Performance Unprecedented for Four-Year Recovery Period
Revised September 1, 2006
This analysis was updated on August 26, 2008 to reflect 2007 Census Data. Click here to view the new analysis. Summary Overall median household income rose modestly in 2005 — but significantly less than normal for a year during an economic recovery — while the … -
Nine Years of Neglect: Federal Minimum Wage Remains Unchanged for Ninth Straight Year, Falls to Lowest Level in More than Half a Century
August 31, 2006
The federal minimum wage has remained at $5.15 an hour since September 1, 1997. So as of September 1, 2006, the minimum wage will have remained the same for nine years, while the costs of medical care, gasoline, and other necessities have grown considerably. Further, the minimum wage has fallen exceptionally far below … -
The Number of Uninsured Americans Is At An All-Time High
August 29, 2006
Data released today by the Census Bureau show that the number of uninsured Americans stood at a record 46.6 million in 2005, with 15.9 percent of Americans lacking health coverage. “The number of uninsured Americans reached an all-time high in 2005,” said Robert Greenstein, executive director of the Center on Budget and … -
How to Assess the Census Income and Poverty Numbers
August 28, 2006
Today, the Census Bureau will release findings regarding household income and poverty for 2005. It is possible these figures will show that median income increased in 2005 and poverty declined; that is the typical pattern for years well into an economic recovery. And if this is the case, Administration officials likely will hail the figures as good … -
A Short Guide to Dynamic Scoring
Revised August 24, 2006
In recent years, official scorekeepers and academic researchers have devoted increased attention to the macroeconomic effects of tax cuts. The Treasury also conducted a “dynamic analysis” of the President’s tax cuts that was included in this year’s Mid-Session Review of the budget as well as in a separate Treasury report.[1] … -
Treasury Dynamic Scoring Analysis Refutes Claims by Supporters of the Tax Cuts
Revised August 24, 2006
On July 25, the Treasury Department released a study entitled “A Dynamic Analysis of Permanent Extension of the President’s Tax Relief.” This study refutes many of the exaggerated claims about the tax cuts that have been made by the President and other senior Administration officials, the Wall Street Journal editorial page, and various other tax-cut advocates. … -
Don't Pop the Corks: CBO Outlook for the Federal Budget Is Still Bleak
August 17, 2006
The Congressional Budget Office today released new budget projections showing a deficit of $260 billion for fiscal year 2006, which will end on September 30.[1] Although such a deficit would be $30 billion lower than the Office of Management and Budget estimated on July 11, and just over $100 billion less than CBO projected last March (excluding the … -
Even With New Budget Projections, Budget Deterioration from 2000-2006 Will Be the Largest 6-Year Deterioration in Half a Century
Revised August 17, 2006
The Congressional Budget Office has issued new estimates that show that the budget deficit will be 2.0 percent of the Gross Domestic Product in 2006, down from the 2.8 percent of GDP that CBO had estimated (under Administration policies) earlier this year. Over the last month, the Administration has celebrated the reduction in … -
TANF at 10
August 17, 2006
The 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) established the Temporary Assistance for Needy Families (TANF) block grant. Under TANF, states received fixed block grants and had broad flexibility to design their own rules for their cash assistance programs, and broad authority to use the block grant resources for other programs outside of cash assistance to assist … -
Bipartisan Bill in House Would Make Marked Improvements in Housing Voucher Program
Revised August 16, 2006
Executive Summary On May 22, 2006, a bipartisan group of leaders of the House Financial Services Committee introduced the Section 8 Voucher Reform Act (SEVRA), which would make a series of changes in the housing voucher program and other housing assistance programs. The bill (H.R. 5443), which the Housing and Community … -
Implementing Direct Certification — States and School Districts Can Help Low-Income Children Get the Free School Meals for Which They Are Eligible
August 11, 2006
All children who participate in the Food Stamp Program are eligible for free meals at school. School districts and state agencies have long had the option of automatically enrolling such children for free meals through a process called “direct certification,” under which they bypass the standard application process. … -
Budget Process Bill Would Result In Deep Cuts In Medicare and Medicaid
Revised August 9, 2006
The Senate Budget Committee has approved a bill (S. 3521) that would radically alter federal budget procedures and could lead to deep cuts over time in the vast majority of domestic programs, including Medicaid, Medicare, and SCHIP. While the odds are slim that the legislation will be considered by the full Senate this year, the … -
Combined Effect of Senate Proposals Would Be To Finance Near-Repeal of the Estate Tax with Cuts in Medicare, Veterans Benefits, School Lunches, and Other Programs
August 9, 2006
At the urging of Senate Republican leader Bill Frist, the Senate last week considered a House-passed proposal to repeal most but not all of the estate tax. The measure contains no “offsets”; its large cost would be financed through higher deficits. In June, the Senate Budget Committee approved a far-reaching bill to make major changes in … -
Gregg Bill Would Make Far-Reaching Changes In Budget Rules
Revised August 9, 2006
Executive Summary Sweeping legislation to radically alter federal budget procedures, designed by Senate Budget Committee chairman Judd Gregg and endorsed by Senate Majority Leader Bill Frist, was adopted by the Budget Committee on June 20. The bill may be brought to the Senate floor this summer (either as a single piece of … -
Combined Effect of Senate Proposals Would Be To Finance Near-Repeal of the Estate Tax with Cuts in Medicare, Veterans Benefits, School Lunches, and Other Programs
August 8, 2006
The Congressional Budget Office announced on August 4 that it now projects the deficit will be $260 billion for fiscal year 2006, which ends on September 30.[1] CBO’s projection of the deficit for the current year is $30 billion below the level projected by the Administration when it released its Mid-Session Review of the Budget on July 11. … -
Budget Process Bill Threatens Veterans’ Programs
August 4, 2006
The Senate Budget Committee has approved a bill (S. 3521) that would radically alter federal budget procedures and could lead to deep cuts over time in the vast majority of domestic programs, including veterans’ programs. While the odds are slim that the legislation will be considered by the full Senate this year, the bill is nevertheless important because it appears to reflect an … -
Comparing the House Minimum Wage and Estate Tax Proposals
Revised August 3, 2006
House leaders are following a legislative strategy that involves marrying an increase in the minimum wage to a sharp reduction in the estate tax. This approach juxtaposes policies that are aimed at two groups at opposite ends of the economic spectrum: minimum-wage workers for whom full-time work currently pays $10,700 a year, and individuals who … -
Policy Points: House Uses Sweeteners, Not Compromises, To Try To Persuade Senate To Gut Estate Tax
Revised August 3, 2006
Estimates from Congress’s Joint Committee on Taxation show that the estate tax measure approved by the House on July 29 would cost essentially as much over the long run as the estate tax bill the House passed in June. Similarly, new estimates from the Urban Institute-Brookings … -
Putting Their Cards on the Table: Senate Budget Bill Indicates Intention to Pay for Tax Cuts by Sweeping Cuts in Programs for Middle- and Low-Income Households
August 2, 2006
The tax cuts enacted since 2001 have been financed through borrowing — that is, through higher deficits. The sharp estate-tax cut that was approved by the House of Representatives on July 29 and is about to be considered in the Senate would be deficit financed, as well. A new Treasury Department analysis issued on July 25 acknowledges, … -
States Still Playing "Catch-Up" in New Budgets
August 2, 2006
A new survey by the Center on Budget and Policy Priorities of recently adopted state budgets provides the first 50-state data on spending for fiscal year (FY) 2007, which began July 1 in most states. The survey shows: For the second year in a row, state spending will grow at above-average rates. This recent growth, … -
Another Commission? The Wolf Entitlement Commission Includes Favorable and Unfavorable Aspects
August 1, 2006
Representative Frank Wolf (R-VA) recently introduced legislation (H.R. 5552) to establish a commission to study the long-term fiscal problems the United States faces.[1] The commission would propose legislation to address these problems, and Congress would be required to vote up or down on that legislation. The bill also permits a … -
Rent Changes In Housing Bill Will Help Many Tenants
Revised August 1, 2006
On June 14, 2006 the House Financial Services Committee passed H.R. 5443, the Section 8 Voucher Reform Act (SEVRA). The bill would alter the rules for setting rents for tenants in public housing and project-based Section 8 units, as well as for voucher holders. [1] The full House will likely consider the bill in the … -
Pension Conference Agreement Makes Retirement Tax Cuts Permanent But Fails To Offset Their Cost
Revised July 31, 2006
The conference agreement on pension legislation would make permanent provisions enacted in the 2001 tax-cut law to expand tax-preferred retirement and education savings accounts. The conference agreement makes these tax cuts permanent without offsetting their cost. According to Joint Committee on Taxation estimates, making these tax cuts permanent would cost $52.6 billion between 2007 and … -
Statement Robert Greenstein on Pension Conference Agreement
Revised July 31, 2006
The pension conference agreement announced today includes the permanent extension of provisions enacted in 2001 that expand tax-preferred retirement and education savings accounts. But the conference agreement includes no offsets to pay for the cost of these tax cuts. It uses deficit … -
House Estate Tax Proposal Has Essentially the Same Large Long-Term Cost As Earlier Version
July 28, 2006
Just five weeks after passing legislation that would drastically reduce the estate tax (H.R. 5638), the House of Representatives is considering another estate-tax proposal. The House passed H.R. 5638 in the hope that it would attract the needed 60 votes in the Senate, but Senators who oppose repealing most or all of the estate tax did not embrace the House alternative, … -
Statement by Robert Greenstein: House Leadership Invokes “Martial Law,” Forcing Members to Vote on Key Bills Without Full Knowledge of What They Are Voting On: Move Represents Erosion Of The Democratic Process
July 28, 2006
The House Republican Leadership has announced its intention to have the House vote, before adjourning on Friday or Saturday, on several major pieces of legislation that are not yet available to House members in final form because behind-closed-door negotiations on the proposals are still going on.… -
Claim That Tax Cuts "Pay For Themselves" Is Too Good To Be True
Revised July 26, 2006
In recent statements, the President, the Vice President, and key Congressional leaders have asserted that the increase in revenues in 2005 and the increase now projected for 2006 prove that tax cuts “pay for themselves.” In other words, the economy expands so much as a result of tax cuts that it produces the same level of revenue as it would have … -
Press Release: House to Consider Restricting States’ Authority to Tax Corporate Profits
July 24, 2006
A bill expected to reach the floor of the U.S. House of Representatives tomorrow would strip states of their authority to tax a fair share of the profits of many corporations that are headquartered out of state but do business within their borders. Under the bill (H.R. 1956, “The Business Activity Tax Simplification Act”), large amounts of … -
Analysis of New Interim Final TANF Rules
July 21, 2006
Introduction On June 29, the Department of Health and Human Services (HHS) issued regulations regarding the Temporary Assistance for Needy Families (TANF) program. These regulations define the activities that are countable toward the work participation rate requirements, describe how the states must monitor and verify the hours that TANF recipients participate, and add some categories of … -
Sunset Commission Proposals Would Not Provide "Good Government"
July 21, 2006
The House Government Reform Committee on July 20 approved, on close to party-line votes, two bills that would establish “sunset commissions.” These sunset commission proposals could be considered by the full House as early as the week of July 24. The two bills before the Government Reform Committee are H.R. 5766, introduced by Representative Todd Tiahrt (R-KS), and H.R. 3282, … -
Do Revenue Surprises Tell Us Much about The Cost of Tax Cuts?
July 18, 2006
The best answer to the question posed by the title of this paper is probably “no,” revenue surprises do not tell us much about the cost of tax cuts. The reason is that revenues are extremely volatile and move up and down in response to a variety of factors that have nothing to do with tax policy. Indeed, the impacts on revenue levels … -
SOS (TABOR) Will Not Jumpstart Michigan's Economy
July 18, 2006
Michigan’s economy is in dire straits. Between 2000 and 2005, Michigan’s six percent decline in employment was the lowest employment growth in the nation and its personal income growth was second lowest among the states. Proponents of the Stop Overspending (SOS) initiative — a constitutional amendment modeled after Colorado’s … -
Georgia’s Increased TANF Work Participation Rate is Driven by Sharp Caseload Decline-REDIRECT
July 17, 2006
This report has been updated. You will be redirected now. http://www.cbpp.org/3-6-07tanf.htm -
Pension Bill Conference Report May Make Some 2001 Tax Cuts Permanent without Offsetting Their Costs
July 17, 2006
Pension legislation passed by the House late last year included provisions that would make permanent the higher contribution limits for tax-preferred retirement savings accounts enacted in 2001. The pension bill conferees reportedly are considering including these provisions in the pension bill conference report, without offsetting their cost. … -
Saver's Credit For Moderate-Income Families Would Fade Away Over Time Under House-Passed Pension Bill
Revised July 17, 2006
The saver’s credit — the only retirement tax cut enacted in 2001 aimed at people with incomes under $50,000 — is scheduled to expire at the end of this year. The House proposed a permanent extension of the saver’s credit as part of its pension bill, and both the House and Senate proposed shorter-term extensions of the saver’s credit as part of their original … -
A State of Decline
July 14, 2006
If the proposed Tax and Spending Control (TASC) initiative— a constitutional amendment to limit expenditures similar to Colorado’s TABOR —had been effective since the 1991-93 biennium in Nevada, state services would have deteriorated substantially in the ensuing 15 years.[1] By limiting state spending growth to a … -
The Recent Upturn in Revenues and OMB's Mid-Session Review
Revised July 14, 2006
Summary The Mid-Session Review issued on July 11 by the White House Office of Management and Budget projects that fiscal year 2006 revenues will be significantly above — and the 2006 deficit significantly below — the levels forecast in the President’s budget in February. This year’s strong … -
Inspector General Reports on HUD’s Moving To Work Demonstration Raise Serious Questions
July 13, 2006
A series of reports by HUD’s Inspector General have found serious flaws in the implementation of the Moving to Work (MTW) housing demonstration, including ineffective oversight by HUD and poor use of funds by some local housing agencies. These findings, considered together with other risks posed by MTW, suggest that … -
New HHS Regulations Focus Medicaid Documentation Requirement On U.S. Citizen Families
July 13, 2006
On July 6, the Centers for Medicare & Medicaid Services (CMS) at the U.S. Department of Health and Human Services released interim final regulations implementing a new documentation requirement for Medicaid beneficiaries.[1] (The interim final regulations supersede the CMS guidance issued to state Medicaid agencies on June 9.… -
Revised Medicaid Documentation Requirement Jeopardizes Coverage For 1 To 2 Million Citizens
July 13, 2006
The Deficit Reduction Act signed by the President in February contains a new mandate requiring the 50 million U.S. citizens who receive Medicaid coverage, as well as all future citizen applicants for Medicaid, to prove their citizenship by providing documents such as birth certificates or U.S. passports. In January, the Center on … -
Senate “Line-Item Veto” Proposal Invites Abuse by Executive Branch
July 12, 2006
The Senate Budget Committee recently approved the Legislative Line Item Veto Act of 2006, a variation of a proposal the Bush Administration submitted earlier this year. The Budget Committee adopted this measure as part of a larger budget-process bill that it passed on June 20. [1] The Senate is expected to consider the line-item veto measure later this session, most likely as a stand-alone … -
The Food Stamp Program is Growing to Meet Need
Revised July 12, 2006
The Food Stamp Program is the cornerstone of the nation’s nutrition assistance programs. This year the program is providing over 25 million participants in more than 11 million low-income households with debit cards they can use to purchase food each month. Because eligibility is not restricted to specific subgroups of people, the Food Stamp Program serves a wide range of … -
A Smoking Gun: President's Claim That Tax Cuts Pay For Themselves Refuted by Administration's Own Analysis
July 11, 2006
In remarks on July 11 touting revised deficit projections in the Mid-Session Review of the Budget, President Bush once again claimed that tax cuts pay for themselves: “Some in Washington say we had to choose between cutting taxes and cutting the deficit….Today’s numbers show that that was a false choice. The economic growth fueled by tax relief has helped send our tax … -
Children In Foster Care May Have To Delay Health Care Because of Federal Regulations On Citizenship Requirement
July 7, 2006
Children removed from their homes because of neglect or abuse and placed in foster care may face delays in getting medical care because of the manner in which the federal government is implementing a provision of the Deficit Reduction Act (DRA) of 2005. The DRA requires that all U.S. citizens applying for, or renewing their … -
Discretionary Caps in Gregg Bill Would Lead To Overly Deep Cuts
Revised July 7, 2006
Senate Budget Committee Chairman Judd Gregg (R-NH) has introduced legislation (S. 3521) that would make a number of far-reaching changes in the federal budget process. The Senate Budget Committee is scheduled to mark up that legislation on June 20. Included in the legislation are provisions that would establish … -
Press Release: Change In Medicaid Rules “Commendable,” But Further Changes Needed To Prevent Loss Of Health Care Coverage By Poor Children And Parents
July 7, 2006
A July 6 announcement by the Department of Health and Human Services that it will exempt 8 million elderly or disabled people from new citizenship documentation requirements for receiving Medicaid “is an important and commendable action that will prevent many vulnerable low-income citizens from losing essential health care services for which … -
Budget Process Bill Threatens Federal Nutrition Programs
July 6, 2006
The Senate Budget Committee has approved a bill that would radically alter federal budget procedures and could lead to massive cuts over time in the vast majority of domestic programs, including nutrition programs. The bill may come to the Senate floor this summer. Senator Judd Gregg, Chairman of the Budget Committee, has described the bill as offering “common sense and fiscally … -
Proposed Discretionary Caps Would Hit States Hard
July 5, 2006
The Senate Budget Committee on June 20 approved legislation (S. 3521) crafted by Budget Committee Chairman Judd Gregg (R-NH) that would make a number of far-reaching changes in the federal budget process.[1] Included in the legislation, which the full Senate may consider this summer, are provisions that would establish … -
Press Releease: Medicaid ID Rule Could Put Health Coverage At Risk For 3 To 5 Million U.S. Citizens Starting July 1
June 30, 2006
A new rule requiring U.S. citizens to prove their citizenship when applying for or renewing Medicaid benefits is expected to jeopardize coverage for several million qualified citizens, from elderly people in nursing homes to foster children, according to a national survey conducted by the Center on … -
CBPP Statement on the New TANF Regulations Issued Today by the Department of Health and Human Services
June 28, 2006
Today the Department of Health and Human Services issued new regulations related to the Temporary Assistance for Needy Families (TANF) program. These new regulations are intended to provide specifics to states about how they will be measured against the new requirements placed on … -
Combined Effect of Bills Moving in the Senate Would Be To Finance Near-Repeal of the Estate Tax With Cuts in Medicare, Veterans Benefits, School Lunches, and Other Programs
June 26, 2006
At the urging of Senate Republican leader Bill Frist, the House of Representatives last week approved a measure designed by House Ways and Means Committee chairman Bill Thomas to repeal most but not all of the estate tax. The measure contains no “offsets”; its large cost would be financed through higher deficits.… -
Senate Budget Process Legislation Embraces "Misguided 45 Percent Trigger"
June 26, 2006
Executive Summary Major budget-process legislation approved by the Senate Budget Committee on June 20 seeks to limit the share of Medicare expenditures that are financed by general revenues. The legislation (S. 3521), crafted by Senate Budget Committee Chairman Judd Gregg (R-NH), would establish a new Senate … -
Estate Tax "Compromise" Proposals May Endanger State Estate and Inheritance Taxes
Revised June 23, 2006
On June 22, the House of Representatives approved an estate tax proposal introduced by House Ways and Means Chairman Bill Thomas. While supporters of the proposal describe it as a “compromise,” it would in fact eliminate the vast bulk of estate tax revenue and has been more aptly characterized as “near repeal.… -
High Cost of Thomas Proposal Reflects the Low Effective Tax Rates Estates Would Face Proposal’s Benefits Would Go Primarily to Largest Estates
Revised June 23, 2006
On June 22, the House passed legislation to sharply reduce the estate tax, and the Senate may vote on the legislation next week. Introduced by House Ways and Means Committee Chairman Bill Thomas, the measure would exempt the first $10 million of an estate for a couple ($5 million for an individual) and would index this exemption for inflation after 2010.… -
Thomas Estate Tax Proposal Still "Near Repeal"
Revised June 23, 2006
On June 22, the House of Representatives passed estate-tax legislation (H.R. 5638), introduced by House Ways and Means Chairman Bill Thomas, that is very similar to — and even slightly more costly than — the most recent estate-tax proposal floated by Senator Jon Kyl. Both proposals would cost nearly as much as permanent repeal of the … -
Buying Power of Minimum Wage at 51 Year Low
June 20, 2006
The minimum wage issue is heating up in Congress. This Congressional attention is long overdue. The federal minimum wage has remained at $5.15 an hour since September 1, 1997. So for nearly nine years the value of the minimum wage has eroded due to the effects of inflation, and the wage standard has … -
Using Information Technology To Document Citizenship In Medicaid
June 20, 2006
HHS Secretary Michael Leavitt has stated that federal programs like Medicaid should be leaders in the adoption of information technology to modernize health care systems.[1] On June 9, the Centers for Medicare and Medicaid Services (CMS) issued federal guidance with directions to states on how to implement a new requirement that … -
House "Line-Item Veto" Proposal Invites Abuse By Executive Branch
June 19, 2006
The House Budget Committee has approved the Legislative Line Item Veto Act of 2006, a variation of a proposal that the Bush Administration submitted earlier this year.[1] The House floor is expected to consider this legislation during the week of June 18, while the Senate Budget Committee is scheduled to consider a different … -
Biennial Budgeting: Do The Drawbacks Outweigh The Advantages?
June 16, 2006
Senate Budget Committee Judd Gregg (R-NH) has introduced legislation (S. 3521) that would make far-reaching changes in the federal budget process. Included in that legislation is a proposal to move the federal budget from an annual to a biennial cycle. Proponents of biennial budgeting present it as a reform that will … -
Hhs Guidance Will Exacerbate Problems Caused By New Medicaid Documentation Requirement
June 16, 2006
This report has been updated. You will automatically be redirected to the revised analysis posted to: http://www.cbpp.org/7-13-06health.htm. -
New Estate Tax Anecdotes Dredge Up Old Myth That the Estate Tax Claims Half of an Estate
June 14, 2006
Opponents of the estate tax often claim that it forces estates to pay half of their assets in taxes. For example, during the Senate debate on the estate tax earlier this month, Senator Jon Kyl told the story of a businessman whose family allegedly had to pay “half of the value of [his] company to the government.” Senator Kyl went so far … -
Administration Medicaid Rule Would Put Pressure On States To Reduce Benefits Or Eligibility Or To Lower Payments To Providers Reduce Health Care Spending
June 13, 2006
Medicaid, which provides health and long-term care insurance to more than 50 million low-income Americans, is paid for jointly by the federal government and the states. States have the option of raising some of their share of Medicaid expenditures by using revenue from taxes on hospitals, nursing homes, managed care organizations, … -
Administration's Argument Against Pay-As-You-Go For Tax Cuts Does Not Withstand Scrutiny
June 13, 2006
Bipartisan budget watchdog groups such as the Concord Coalition and the Committee for Economic Development have called for reinstatement of the Pay-As-You-Go rules, which helped move the budget from deficits to surpluses in the 1990s. Eminent figures such as former Federal Reserve chair Alan Greenspan and David Walker, head of the … -
Informing The Debate About Health Savings Accounts
June 13, 2006
Click on the text of the questions below to go directly to the corresponding answer. Are there now 3.2 million HSAs in use? Do employers offering high-deductible health insurance plans and HSAs to their employees contribute to the HSAs to help their employees cover the higher out-of-pocket costs related to the high … -
New Joint Tax Committee Estimates Show Modified Kyl Proposal Still Very Costly
Revised June 13, 2006
On June 8, the Senate rejected, by a vote of 57-41, a motion to consider permanent repeal of the estate tax (under Senate rules, the measure required 60 votes to pass). During the lead-up to the vote, Senator Jon Kyl floated a modification of his longstanding “compromise” proposal to repeal most but not quite all of the estate tax. … -
Health Savings Accounts Unlikely To Significantly Reduce Health Care Spending
June 12, 2006
Proponents of Health Savings Accounts (HSAs) — tax-favored savings accounts attached to high-deductible health insurance plans — have long argued that widespread adoption of HSAs will contain health care costs substantially over time. The theory is that the high deductibles required under HSAs (at least $1,050 for … -
Cost of Estate Tax Compliance Does Not Approach the Total Level of Estate Tax Revenue
Revised June 9, 2006
It has been claimed that the costs of complying with the estate tax are nearly equal to the total amount of revenue the tax raises. While it is true that wealthy people devote considerable time and money to sheltering their estates from taxation, there is no credible evidence that compliance costs — including the … -
New Joint Committee on Taxation Estimates of Estate Tax Repeal Show Slightly Higher Costs
June 9, 2006
The Joint Committee on Taxation this week released new estimates of the cost of making permanent the repeal of the estate tax after 2010. These estimates of the cost of H.R. 8, the measure that passed the House last year (and that the Senate voted on June 8 not to consider), show that permanent repeal would cost $386.5 billion between 2007 and 2016.… -
Estate Tax Repeal Would Decrease National Saving
June 8, 2006
Repeal of the estate tax would add about $1 trillion to federal deficits over the first decade in which its costs would be fully felt (2012-2021). These higher deficits would reduce national savings, with the consequence that, in the long run, estate tax repeal would have at best negligible, and possibly negative, effects on the economy. Surprisingly, … -
Estate Tax Repeal — or Slashing The Estate Tax Rate — Would Substantially Reduce Charitable Giving
June 7, 2006
Repealing the estate tax would substantially reduce U.S. charitable giving, according to research by the Congressional Budget Office and various economists. As CBO’s study explains, the estate tax creates powerful incentives for affluent individuals to donate to charity. Since donations made both during life and at death reduce the size of an estate and thus the amount subject … -
A "Mere" $300 Billion: Should a $300 Billion Deficit Be Considered a Victory?
Revised June 5, 2006
On May 4, the Congressional Budget Office revised its estimate of the deficit for the current fiscal year (2006) to “significantly less than $350 billion, perhaps as low as $300 billion, assuming enactment of the pending supplemental appropriations and tax reconciliation legislation.”[1] On May 9, Goldman Sachs … -
Policy Points: The Coming Estate-Tax Showdown
Revised June 5, 2006
Next week, the Senate plans to vote on what is probably the most important tax issue this year: whether to permanently repeal all, or nearly all, of the estate tax. The House already has voted for permanent repeal. The Senate was set to vote on the issue last fall, but backed … -
SCHIP Financing Update
June 5, 2006
The State Children’s Health Insurance Program (SCHIP), jointly financed by states and the federal government, provides comprehensive health insurance coverage to more than four million low-income children, most of whom would otherwise be uninsured.[1] In a prior analysis, we estimated that under current law, a number of states … -
Estate Tax "Compromise" With 15 Percent Rate Is Little Different Than Permanent Repeal
Revised June 2, 2006
The Senate is expected to vote on estate tax repeal in June of this year. Permanent repeal of the estate tax would cost nearly $1 trillion between 2012 and 2021, the first ten year period in which its costs would be fully felt. (This cost includes $776 billion in revenue loss and $213 billion in higher interest payments on the federal debt.[1]) In … -
The State of the Estate Tax as of 2006
Revised June 2, 2006
With the Senate preparing to vote on permanent repeal of the estate tax in June, it is important to take stock of the changes that have already been made to the tax. As a result of legislation enacted in 2001, the portion of an estate that is exempt from taxation has more than doubled since 2000 and stands at $2 million ($4 million per couple) in 2006.… -
Barriers to Saving
June 1, 2006
-
West Virginia’s Medicaid Changes Unlikely To Reduce State Costs Or Improve Beneficiaries’ Health
May 31, 2006
The federal Deficit Reduction Act of 2005 (DRA), signed into law in February 2006, gives states new options to scale back health-care benefits for children and parents enrolled in Medicaid.[1] On May 3, 2006, West Virginia received federal approval to provide a scaled-back basic benefit package for most children and parents in its … -
The House-Passed Budget Plan
Revised May 22, 2006
In the early morning of May 18, the House passed a budget plan (or “budget resolution”) for fiscal year 2007. In a separate vote later that day, the Housed “deemed” that the Congress has given final approval to the plan. As a result of this “deemer,” the House budget plan is now … -
Contrary To President's Claim, Large Majority of Americans Ultimately Will Lose From Tax Reconciliation Bill
May 17, 2006
In his recent statement responding to the tax reconciliation bill conference agreement, President Bush asserted that failure to extend the tax cuts contained in the bill would be “disastrous” for “all working Americans.”[2] The President’s claim is implausible in light of the distribution of the … -
Press Release: Most Americans Likely To End up Net Losers When New Tax-Cut Bill Is Paid For
May 17, 2006
New data from the Urban Institute-Brookings Institution Tax Policy Center indicate that whether the new tax-cut bill the President will sign today is ultimately paid for through program cuts, tax increases, or some combination of the two, the small or non-existent tax benefit that most Americans will get from the bill will likely be outweighed … -
Roth IRA Provision Effectively Eliminates Income Limits on Roth IRAs
Revised May 15, 2006
The tax reconciliation bill conference agreement gives the appearance of retaining the current income limits on who can make contributions to Roth IRAs. In reality, however, the legislation changes the Roth IRA rules in a way that effectively eliminates the income limits on these contributions. As a result, all income limits on the use of Roth IRAs would in effect be dismantled … -
Policy Points: New Tax-Cut Legislation Means Windfall Benefits for the Few, Larger Deficits for the Nation
May 12, 2006
The tax-cut reconciliation agreement approved this week by Congress will provide windfall benefits to those at the top of the income scale but little for most other Americans. Although the agreement’s supporters claim that the 2003 cuts in capital gains and dividend taxes helped spark … -
Press Release: New Estimates Show Expected Tax Reconciliation Deal Would Provide Average Tax Cuts of $20 for Middle-Income Households, $42,000 for Millionaire Households
Revised May 12, 2006
New estimates from the Urban Institute-Brookings Institution Tax Policy Center (TPC) show that the $70 billion tax-cut reconciliation package reportedly agreed to by House and Senate negotiators will offer virtually no benefits to low- and moderate-income households, but shower high-income … -
Reconciliation Tax Cuts Would Average $43,000 for Households with Income over $1 Million
Revised May 12, 2006
The final agreement on the $70 billion tax-cut reconciliation package offers virtually no benefits to low- and moderate-income households, but showers high-income households with very large tax cuts. The Urban Institute-Brookings Institution Tax Policy Center has examined the major provisions that are in the package, including a two-year extension of capital gains and … -
Statement of Robert Greenstein on the Tax-Cut Reconciliation Agreement
Revised May 11, 2006
This indefensible agreement provides a windfall for the most well-off but little or nothing for most other Americans, relies on budget gimmicks to help mask its long-term costs, and will further increase our already large and unsustainable deficits. Analysis by the Urban Institute – Brookings … -
Tax Reconciliation Agreement Distorted by Obsession with Capital Gains and Dividend Tax Cuts
Revised May 11, 2006
House and Senate negotiators announced an agreement yesterday on a tax-cut reconciliation bill that would reduce revenues by $70 billion between 2006 and 2010, according to Joint Committee on Taxation estimates. Although nearly half of this cost reflects a one-year extension of relief from the Alternative Minimum Tax, it is the two-year extension of the … -
Fact Sheet: Tax-Cut Reconciliation Agreement Severely Flawed
May 9, 2006
Whether one looks at the conference agreement bill from the standpoint of fiscal responsibility, of budgetary integrity, or of fairness, the agreement is seriously flawed. More, and more, tax cuts. The bill officially costs $70 billion, but the conferees stayed within the $70 billion … -
Press Release: Rebuilding Aid for Neediest Katrina Victims Should be Retained in Final Supplemental Funding Bill
May 9, 2006
The first federal housing assistance aimed specifically at poor households harmed by last year’s hurricanes could fall victim to House-Senate differences over emergency supplemental funding legislation, even though this funding is unrelated to “earmarks” that House leaders have vowed to … -
The Impact of Hawaii's Income Tax on Low-Income Families: An Update
May 4, 2006
In the next few days, Hawaii’s legislature will consider the conference agreement on changes to Hawaii's income tax, HB957. This agreement, which appears to have the support of legislative leadership and the governor, increases the standard deductions and expands the tax brackets beginning in tax year 2007. [1] The bill fails … -
Social Security and Inheritance
May 3, 2006
Executive Summary: Inheritance is one of the least understood issues in the Social Security debate. Supporters of private accounts often cite the ability to pass an account on to one’s heirs as an especially attractive feature of private accounts, one that the traditional Social Security system cannot match. For … -
Statement of Robert Greenstein, Regarding The Social Security and Medicare Trustees’ Report
May 1, 2006
Today’s report is another reminder of the serious long-term fiscal challenges the nation faces. Overall federal budget deficits will swell as the baby boom generation retires, medical costs continue their rapid ascent, and the growth of the U.S. workforce slows as a result of the aging … -
Trustees’ Report Focuses Attention On Misguided Medicare “45-Percent Trigger”
Revised May 1, 2006
The Social Security and Medicare Trustees report issued May 1 includes an estimate that the portion of Medicare funding that comes from general revenues will exceed 45 percent in 2012. This estimate is likely to be cited by some as an indication of Medicare’s growing problems, with the implication being that Medicare’s … -
What the 2006 Trustees' Report Shows about Social Security
May 1, 2006
On May 1, the Social Security Board of Trustees released the 66th annual report on the program’s financial and actuarial status. The report projects that Social Security’s trust fund reserves will be exhausted in 2040, one year earlier than last year’s projection. After that year, Social Security will be able to pay 74 percent of scheduled benefits, rather than full benefits. … -
Will The Administration Claim the Cost of Fixing Social Security Rose $700 Billion Because Congress Did Not Act Last Year?
Revised May 1, 2006
President Bush and other Administration officials often claim that delaying action on Social Security by “...just one year adds $600 billion [or $700 billion] to the cost of fixing Social Security.”[1] Such claims may be repeated on May 1 when the Social Security Trustees release their annual report on the program’s finances. Such claims, however, are not accurate. The figures used in … -
Reforming Social Security Sooner Rather Than Later
April 28, 2006
A common refrain is that it is better to act sooner rather than later on Social Security reform. President Bush, for example, argues “Putting off real reform makes fixing the system harder and more expensive.”[1] As a general principle, the common refrain is right. Acting sooner rather than later allows … -
Lessons From New Hampshire: Senate Health Bill Could Drive Up Health Insurance Premiums for Many Small Businesses
April 26, 2006
In early May, Senate Majority Leader Bill Frist is expected to bring to the Senate floor the “Health Insurance Marketplace Modernization and Affordability Act of 2005” (S. 1955), introduced by Senator Enzi (R-WY) and reported out of the Senate Health, Education, Labor and Pensions Committee on March 15. While the intent … -
Senate Health Bill Would Preempt States’ Small Group Rating Rules
April 26, 2006
On March 15, 2006, on a party-line vote, the Senate Health, Education, Labor and Pensions Committee reported out S. 1955, the “Health Insurance Marketplace Modernization and Affordability Act” (HIMAA), which could be brought to the Senate floor as early as the first week of May. This brief analysis examines how S. 1955 … -
A "Super" Bad Idea: Requiring a Two-thirds Legislative Supermajority to Raise Taxes Protects Special Interest Tax Breaks and Gives Budget Veto Power to a Small Minority of Legislators
April 25, 2006
Enactment of state legislation normally requires approval by a majority vote in each house of the legislature plus the governor’s signature. Anti-tax activists in Kansas, however, are proposing to require a two-thirds supermajority vote of each house of the state legislature plus the governor’s signature in order to … -
President's 2007 Budget Renews Same Number of Housing Vouchers Funded in 2006
Revised April 25, 2006
Executive Summary The President’s budget requests $15.9 billion in fiscal year 2007 for tenant-based rental assistance under the Housing Choice Voucher Program, the nation’s largest low-income housing program. The request would renew approximately 2,070,000 vouchers in 2007, about equal to the total number of … -
A Taxpayer Bill of Rights by Any Other Name
April 21, 2006
A proposed ballot initiative in Montana to limitstate spending — “Stop OverSpending” or SOS — is similar in its basic structureand effect to Colorado’s TABOR. Montana’s SOS proposal includes all threefactors that make Colorado’s TABOR (Taxpayer Bill of Rights) the most severestate budget … -
Proposed Line-Item Veto Legislation Would Invite Abuse by Executive Branch
Revised April 21, 2006
The Administration has proposed the Legislative Line Item Veto Act of 2006, which was recently introduced in Congress by Senate Majority Leader Bill Frist (R-Tenn.) as S. 2381 and by Representative Paul Ryan (R-Wis.) as H.R. 4890.[1] Both the House and the Senate are expected to consider the proposal in coming months. The … -
The New Medicaid Citizenship Documentation Requirement
April 20, 2006
Under a new federal requirement that took effect July 1, most U.S. citizens applying for Medicaid or renewing their coverage must prove their citizenship by submitting a passport or a combination of a birth certificate and an ID. This new requirement, part of budget legislation enacted in February, … -
Changing The Budget Rules
April 18, 2006
In the budget it presented to Congress last month, the Bush Administration proposed a series of changes in the rules under which Congress considers and approves the federal budget.[1] The principal Administration proposals have a common theme: the new rules would allow unlimited tax cuts while imposing tight limits on … -
Social Security Administration Proposal To Revise Disability Determinations Is Not Justified
April 18, 2006
The Social Security Administration (SSA) is proposing to change how it evaluates age as a factor in establishing eligibility for disability benefits. Under the change, SSA would raise by two years the ages at which key rules used to determine eligibility for Social Security disability insurance (SSDI) or Supplemental Security … -
A Dubious Honor for Hawaii
April 17, 2006
Last week, Alabama's governor signed into law new legislation that provides major income tax relief to low-income working families. As a result of this change in Alabama law, Hawaii — which was second to Alabama in the burden its income tax imposes on the poor — is on track to inherit Alabama’s standing as the … -
School Meals Program Applications Online: Highlights of Ways to Reduce Access Barriers and Links to Available Materials
April 17, 2006
In 2004, Congress reauthorized the school meals programs and enacted numerous changes to program rules regarding the application, enrollment, and eligibility verification processes. As a result of these changes, every school district in the country had to revise its school meals application for the 2005-2006 school year. The Center on Budget and Policy Priorities has reviewed state … -
Tax Foundation Figures Do Not Represent Middle-Income Tax Burdens
Revised April 13, 2006
As in past years, the Tax Foundation has released a report projecting “Tax Freedom Day,” which it describes as the day when “Americans will finally have earned enough money to pay off their total tax bill for the year.” Over the years, pundits and policymakers often have misinterpreted the Tax Foundation’s report as reflecting the tax burdens that the broad … -
Closing the Tax Gap
April 10, 2006
The Internal Revenue Service recently released updated estimates showing that the tax gap – which it describes as “the difference between what taxpayers should have paid and what they actually paid on a timely basis” — was $345 billion in Tax Year 2001. (This does not include unpaid taxes on illegal activities.)[1] This represents a non-compliance rate of 16.3 … -
Federal Tax Burdens at Lowest Levels in Decades
April 10, 2006
The percentage of income that most categories of taxpayers pay in federal taxes is at the lowest level in decades. Despite this fact — and despite the large current federal budget deficit and the even larger fiscal problems projected for coming decades — the Administration and Congress are pushing for additional tax cuts that would aggravate … -
Recent Tax and Income Trends among High-Income Taxpayers
April 10, 2006
Administration officials have consistently sought to portray the distribution of benefits from the 2001 and 2003 tax cuts as balanced or even progressive. Recently, for example, the Treasury Department released a “Tax Relief Kit,” which includes a fact sheet entitled “Who Pays Most Individual Income Taxes?” The fact sheet … -
Tax Foundation Estimates of State and Local Tax Burdens are not Reliable
April 10, 2006
In April 2006, the Tax Foundation is expected to release its annual report on “Tax Freedom Day,” which it describes as the day when “Americans will finally have earned enough money to pay off their total tax bill for the [current] year.” For each state, the report will show the Tax Foundation’s … -
Tax Reform and Poverty
April 10, 2006
The tax system has a pervasive impact on poverty, both directly through its role in the distribution of society’s resources and indirectly through its effects on the incentives for economic decisions like working and saving. The two most important facets of the tax system for low-income families are payroll taxes and the Earned Income Tax Credit … -
The Republican Study Committee Budget Plan
April 6, 2006
The Republican Study Committee, a group of very conservative members of the House of Representatives, issued a budget plan on March 8, 2006. That plan may be offered as an amendment later this week to the congressional budget resolution reported by the House Budget Committee. The … -
A Brief Overview of the Major Flaws With Health Savings Accounts
April 5, 2006
Established under the 2003 Medicare drug legislation, Health Savings Accounts (HSAs) are individual accounts in which individuals who have a high-deductible health policy can save money to pay out-of-pocket health expenses. In tax year 2006, any individual who enrolls in a health plan with a deductible of at least $1,050 for individual … -
How High Did the Senate Budget Resolution Set Domestic Discretionary Funding for 2007?
Revised March 29, 2006
There has been misunderstanding regarding the amount of funding for domestic discretionary programs added to the Senate budget resolution on the Senate floor. Some have thought that the Senate floor added $16 billion in 2007 funding for domestic discretionary programs. Not counting an amendment offered by Senators Arlen … -
Background on Potential Budget Gimmick in Tax Reconciliation Conference
March 28, 2006
Issued Jointly With Lawmakers currently trying to work out differences between the versions of the tax cut reconciliation legislation that the House and Senate passed last year reportedly are considering using a gimmick — which entails claiming that one tax cut “pays for” another tax cut — to evade an important Senate rule. That … -
Press Release: Joint Statement Opposing Potential Budget Gimmick
March 28, 2006
Issued Jointly With Congress is contemplating a gimmick that would circumvent existing budget enforcement rules in the Senate and increase long-term deficits. House and Senate conferees on the reconciliation tax bill are considering a proposal to offset part of the short-term revenue loss (in 2011 through 2015) from one tax cut by enacting another … -
Poor Measurement: New Census Report on Measuring Poverty Raises Concerns
March 28, 2006
On February 14, the Bureau of the Census released its latest report on alternative measures of poverty.[1] Among social scientists, there is considerable dissatisfaction with the official approach to poverty measurement, and this document is part of a welcome research initiative by Census analysts to improve the way that poverty in America is measured and understood. The Census … -
Five-Year Discretionary Caps Would Be Unwise at This Time
March 27, 2006
The President has again proposed enactment of binding caps for each of the next five years on overall levels of funding and expenditures for discretionary programs (i.e., programs that are non-entitlements). Under the proposal, the cap for each fiscal year through 2011 would be set at the overall levels for discretionary … -
The Capital Gains and Dividend Tax Cuts and The Economy
March 27, 2006
The Treasury Department recently released a report entitled “The Economic Effects of Cutting Dividend and Capital Gains Taxes in 2003.” While the text of the new document acknowledges that gains in the economy since 2003 “are the result of a combination of many factors,” the pictures that accompany the report communicate a less nuanced message. [1] The graphs … -
Press Release: Economic Claims for TABOR Not Supported By Colorado’s Experience
March 23, 2006
Nearly a dozen states this year are considering a “taxpayer’s bill of rights” (TABOR) modeled on Colorado’s severe limit on state taxes and expenditures. TABOR proponents are claiming that Colorado’s strong economic performance during the 1990s demonstrates its economic benefits. However, a new report from the Center on Budget and Policy … -
Education and Investment, Not TABOR, Fueled Colorado's Economic Growth in 1990s
March 23, 2006
Proponents of Colorado’s “Taxpayer Bill of Rights” (TABOR), the 1992 constitutional amendment that imposed the nation’s strictest limit on taxes and public expenditures, have argued that TABOR is largely responsible for Colorado’s strong economic performance during the 1990s. Few scholars of Colorado’s economy, however, believe this causal relationship exists. The skepticism about TABOR’s role results in part … -
A Faulty Fix: Repairing the "Ratchet" Will Not Repair TABOR
March 21, 2006
Coloradoans recently voted to suspend the Taxpayer’s Bill of Rights (TABOR), the nation’s most restrictive limit on state taxes and expenditures, because it has caused a sharp deterioration in services ranging from education to public health to transportation. Those pushing for the adoption of TABOR-style measures in … -
A Pay-As-You-Go Rule That Would Exempt All Tax Cuts Would Make a Mockery of Efforts to Restore Fiscal Discipline
March 20, 2006
The House of Representatives will apparently consider legislation in coming weeks that would make a number of changes in the federal budget process. It is possible that this legislation will include a provision endorsed by the House Budget Committee in 2004 that would resurrect the “pay-as-you-go” rules, but in a … -
The Same Old TABOR: Maine's "Taxpayer Bill of Rights" Proposal Fails To Fix Flaws of Colorado's TABOR
March 16, 2006
A ballot initiative proposal in Maine — “An Act to Create a Taxpayer Bill of Rights” — would impose tight limits on state expenditures that would shrink available public services such as education and health care in the same way that Colorado’s TABOR has led to a deterioration in that state.[1] … -
Tax Cuts Proposed in President's Budget Would Ultimately Cause Large State Revenue Loses
March 16, 2006
When the federal government cuts taxes, those tax cuts sometimes cause reductions in state revenue as well. This occurs because most states with individual and/or corporate income taxes use the federal definitions of adjusted gross income and corporate income as the basis for their own income taxes. When a tax cut reduces the … -
"Joint Budget Resolution" Could Lead to Gridlock on Appropriations and Shift Power to the Executive Branch
March 16, 2006
Under the Congressional Budget Act of 1974, budget resolutions are “concurrent resolutions” that do not go to the President for his signature or veto and are not laws. Also under current rules, if a budget resolution has not been approved by May 15, appropriations bills may be brought to the House floor so that … -
Proposed Cap Would Require Deep Cuts In Entitlement Programs
March 16, 2006
The Republican Study Committee, a group of conservative members of the House of Representatives, has proposed to establish an “entitlement cap” that limits total expenditures for entitlement programs other than Social Security and requires projected expenditures for such programs to be cut $1.8 trillion over the next … -
The Senate Budget Committee's Budget Plan: A Brief Analysis
March 16, 2006
Summary The Senate is scheduled this week to consider a budget plan that the Senate Budget Committee adopted last week on a party-line vote. The plan — known as a budget resolution — is similar in a number of respects (but not in others) to the budget proposed earlier this year by President Bush. It would cut domestic … -
The Slowdown In Medicaid Expenditure Growth
March 16, 2006
It is sometimes claimed that Medicaid expenditures are “out of control.” A careful analysis of recent data and projections indicates, however, that Medicaid growth has slowed considerably in the last year or so, even before the enactment of the Deficit Reduction Act of 2005. Both the Administration and the Congressional … -
Administration's Fiscal Year 2007 Budget Is Likely Still To Leave Schip Coverage For Low-Income Children In Jeopardy
Revised March 14, 2006
The State Children’s Health Insurance Program (SCHIP), jointly financed by states and the federal government, provides comprehensive health insurance coverage to more than 4 million low-income children who would otherwise be uninsured.[1] In fiscal year 2007, under current law, 18 states will have insufficient federal funding … -
State Fact Sheets: Winners and Losers Under Administration's 2007 Housing Voucher Funding Plan
March 13, 2006
State-specific fact sheets containing information on the impact of the Administration's housing voucher funding plan are provided through the links below. Alabama Kentucky … -
Press Release: Many Communities Would Be Forced To Reduce Number of Housing Vouchers Under Administration’s Budget
March 13, 2006
The Administration’s proposed budget for the Housing Choice Voucher Program for 2007 would underfund roughly 70 percent of the state and local housing agencies that administer the program, according to a new Center analysis. These agencies would be forced to reduce the number of … -
President and Senate Budget Committee Embrace Misguided “45-Percent Trigger”
March 13, 2006
Both the President and the Senate Budget Committee have embraced the notion that increases in the share of Medicare expenditures that are funded by general revenues are problematic and should be limited. The President’s fiscal year 2007 budget calls for Medicare to be subject to automatic cuts in any year in which more than … -
A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2006
March 8, 2006
Executive Summary An Earned Income Tax Credit is a tax reduction and a wage supplement for low- and moderate-income working families. The federal government administers an EITC through the income tax. So do many states. States that enact EITCs can reduce child poverty, increase effective wages, and cut taxes for families struggling to make ends … -
Has the Safety Net Greatly Expanded over the Last Five Years?
March 7, 2006
The Heritage Foundation recently issued a paper by Brian Riedl claiming that programs for the poor have expanded greatly on President Bush’s watch and have done very well in the budget changes of recent years. This claim has been promoted in several op-eds by Riedl and repeated in various media interviews. Riedl often … -
Press Release: State Tax Preferences for Seniors Will Grow More Costly As Boomers Retire: Study Outlines Ways to Target Tax Relief to Seniors in Need
March 6, 2006
The special tax preferences most states provide to seniors — often irrespective of income — will place growing strains on state budgets as the population ages, according to a new report from the Center on Budget and Policy Priorities. The report recommends that states reexamine … -
Revisiting State Tax Preferences for Seniors
March 6, 2006
By the year 2030 one in five Americans will be over the age of 65 according to Census Bureau projections. Increasingly, state budgets will be stretched thin by the healthcare and other needs of the nation’s elderly. For example, states provide on average 47 percent of the funding for the Medicaid program, which pays for the vast … -
Video: The Real Story Behind TABOR
March 2, 2006
This video discusses the impact of the "Taxpayer Bill of Rights" on Colorado and provides lessons for other states that may be considering similar limits on state taxes and spending. -
Housing Needs of Many Low-Income Hurricane Evacuees Are Not Being Adequately Addressed
Revised February 27, 2006
Federal responses to last year’s hurricanes have fallen well short to date of meeting the needs of many of the low-income families and individuals who were displaced by the storms. While the weaknesses in the federal effort have created problems for rich and poor alike, these weaknesses present particular difficulties for low-income … -
Press Release: Housing Needs of Many Low-Income Hurricane Victims Remain Unmet
February 23, 2006
The federal government has not done enough to meet the housing needs of poor residents affected by the 2005 hurricanes, according to a new Center analysis, which also details several policy recommendations for Congress in this area. “The rebuilding from the hurricanes has only begun” said Will Fischer, the report’s primary author. … -
Program Cuts in the President's Budget
February 23, 2006
The President’s budget proposes substantial cuts in funding for domestic discretionary programs over the next five years. The budget specifies the funding level for each program in 2007, but the levels for specific programs for years after 2007 — the years in which the overall level of reductions in domestic … -
The Impact of State Income Taxes on Low-Income Families in 2005
February 22, 2006
Poor families in many states face substantial state income tax liability for the 2005 tax year. In 19 of the 42 states that levy income taxes, two-parent families of four with incomes below the federal poverty line are liable for income tax. In 16 of the 42 states, poor single-parent families of three pay income tax. And 31 of these states … -
Press Release: State Income Taxes Pushing Hawaii’s Working-Poor Families Deeper Into Poverty
February 22, 2006
Hawaii’s income tax burdens for working-poor families are among the highest in the country, according to a new study from the Center on Budget and Policy Priorities, which examines the income tax burdens on the poor in the 42 states that levy income taxes. A two-parent family of four in Hawaii with income at the federal poverty line of $19,961 owes $470 in state income … -
Press Release: State Income Taxes Pushing Many Working-Poort Families Deeper Into Poverty
February 22, 2006
In nearly half of the states with an income tax, a family of four owes the tax even if its income falls below the poverty line, according to a new report from the Center on Budget and Policy Priorities. In 19 of the 42 states that levy an income tax, the “tax threshold” (the income level at which families begin owing taxes) for tax year 2005 is below $19,961, the poverty line for … -
State Fact Sheets: The Impact of State Income Taxes on Working-Poor and Near-Poor Families
February 22, 2006
State-specific fact sheets containing information on the impact of state income taxes on working-poor and near-poor families, including historical trends, are provided through the links below. States without fact sheets do not levy income taxes. … -
Interested Parties Memo on the Initial Assessment of the President’s 2007 Budget: Impacts on Housing Voucher Program and Hurricane Recovery
Revised February 17, 2006
On February 6, the President released a budget request for fiscal year 2007 that proposes to cut $622 million (1.8 percent) from the HUD budget, in comparison to FY 2006 funding levels, not counting losses due to inflation. The request recommends major cutbacks in community development, … -
New Price Data Show Additional LIHEAP Funding Still Needed
February 17, 2006
Before departing in December for its winter recess, Congress enacted legislation that appropriated funding for the Low-Income Home Energy Assistance Program at a level one percent below last year’s level. Congress reduced LIHEAP funding despite the fact that the prices of heating fuels used by LIHEAP beneficiaries have … -
Policy Points: Administration’s Budget Fails Tests of Fiscal Responsibility, Fairness, and Openness
February 17, 2006
The Test of Fiscal Responsibility: Does the Budget Reduce the Deficit? The budget would increase the deficit over both the short run and the long run. It proposes $191 billion in reductions in a broad array of domestic discretionary and entitlement programs, but those … -
Survey Indicates Deficit Reduction Act Jeopardizes Medicaid Coverage For 3 To 5 Million U.S. Citizens
Revised February 17, 2006
The Deficit Reduction Act signed by the President on February 8th contains a new mandate requiring U.S. citizens covered by Medicaid to prove their citizenship by submitting a birth certificate or passport (or a limited set of similar documents) or else lose their Medicaid coverage. Beginning July 1, 2006, this provision will apply … -
Administration Defense of Health Savings Accounts Rests on Misleading Use of Statistics
February 16, 2006
To encourage wider use of Health Savings Accounts (HSAs), tax-free individual accounts for health-related expenses that must be coupled with a high-deductible insurance policy, the Administration is proposing significant new HSA-related tax breaks that it estimates would cost $156 billion over ten years. Several important concerns … -
Press Release: Administration’s Health Savings Accounts Proposals Would Cause Net Increase In Number Of Uninsured
February 15, 2006
A new analysis by one of the nation’s leading health economists finds that the Administration’s proposals to expand tax breaks for Health Savings Accounts (HSAs) would cause a net increase in the number of uninsured Americans. The analysis, conducted by Jonathan Gruber of M.I.T., projects that while 3.8 million previously uninsured people would gain health coverage through HSAs as a result of the President’s proposals, 4.4 million people would … -
The Cost and Coverage Impact of the President’s Health Insurance Budget Proposals
February 15, 2006
In this analysis I report the results of my efforts to assess the impact that the President’s health insurance budget proposals on government costs and insurance coverage in the U.S. The results reported here are from the microsimulation model that I developed with the generous assistance of the Kaiser Family Foundation. I … -
The Administration’s Medicaid Proposals Would Shift Federal Costs To States
February 14, 2006
In its new budget, the Administration proposes net federal Medicaid funding cuts equal to $14 billion over the next five years and $35.5 billion over ten years through a combination of legislative changes and regulatory action. [1] These reductions follow on the heels of significant federal Medicaid cuts ($4.9 billion over five … -
Administration Proposals To Hide Tax-Cut Costs
February 14, 2006
The President’s 2007 budget includes two proposals that risk corrupting federal budget rules in order to facilitate passage of Administration tax cuts. One proposal calls on Congress to adopt a new scoring convention that would make the cost of extending the 2001 and 2003 tax cuts disappear; under this proposal, legislation to … -
Administration’s Budget Would Cut Federal Medicaid Costs By Shifting Costs To States
February 14, 2006
More than four-fifths of the Medicaid savings proposals in the Administration’s new budget would reduce federal Medicaid expenditures by shifting costs directly to the states, according to a new report from the Center on Budget and Policy Priorities. The proposals would save the federal government … -
President's Budget Would Cut Food for Over 420,000 Low-Income Seniors
Revised February 14, 2006
President Bush’s fiscal year 2007 budget would eliminate funding for the Commodity Supplemental Food Program (CSFP), terminating food assistance to 420,000 low-income seniors in an average month. CSFP provides monthly nutritious food packages primarily to low-income seniors aged 60 and older in parts of 32 states, the District of Columbia, and two Indian reservations. [1] The typical … -
The President's Budget: A Preliminary Analysis
Revised February 10, 2006
An administration’s budget is a statement of its priorities. This budget’s priorities are clear: it features cuts in numerous domestic programs that serve low- and middle-income families alongside continued — and substantially expanded — tax cuts of very large size that concentrate their benefits on … -
The Hidden Cuts in Domestic Appropriations
February 9, 2006
Under the Administration’s budget, funding for domestic discretionary programs would be cut by $183 billion over the next five years, relative to OMB’s own budget baseline (i.e., relative to the 2006 funding levels adjusted for inflation). By 2011, the last year covered by the budget, funding for … -
President Greatly Reduced His Health Proposals For Lower-Income Families While Expanding Health Benefits For The More Affluent
February 8, 2006
President Bush’s budget includes $156 billion in tax cuts over the next ten years (2007-16) to promote Health Savings Accounts and associated high-deductible insurance policies, with the large majority of this money going to more affluent households. This is slightly larger than the $133 billion in tax cuts for health care that the President … -
Federal Grants to States and Localities Cut Deeply in Fiscal Year 2007 Federal Budget
February 7, 2006
Grants to state and local governments have long been an important way in which the federal government supports and administers programs efficiently. The new budget, however, continues to significantly erode those grants. This leaves states and localities the option of either curtailing services or increasing their own taxes to … -
Expansion in HSA Tax Breaks is Larger – and More Problematic – Than Previously Understood
Revised February 7, 2006
In conjunction with the State of the Union Address, the President proposed an expansion of tax breaks both for Health Savings Accounts (HSAs) and for premiums for the high-deductible insurance policies that are purchased in conjunction with HSAs. The President is proposing a large increase in the amount that can be contributed to a HSA on a … -
Effects of the Tax Reform Panel’s Proposals on Low- and Moderate-Income Households
February 3, 2006
Executive Summary On November 1, 2005, the President’s Advisory Panel on Tax Reform presented its recommendations to Treasury Secretary John Snow. The panel’s report offers two alternative comprehensive reform plans, a “simplified income tax plan” and a “growth and investment tax plan.” Both plans, the panel argues, would improve on the current … -
Policy Points: Some Key Facts Concerning The President’s Budget Priorities For 2007
February 3, 2006
In this week’s State of the Union, President Bush outlined the priorities of the Administration’s forthcoming budget. Several key facts necessary to understanding the impact of the President’s proposals, however, were not mentioned in the speech. 1. While the … -
How Much Would a State Earned Income Tax Credit Cost?
February 1, 2006
Nineteen states have enacted tax credits for low- and moderate-income working families based on the federal Earned Income Tax Credit. A number of additional states are considering enacting EITCs in the 2006 legislative session. The following provides guidelines that policymakers and others can use to estimate the cost of a refundable state Earned Income Tax Credit that is set at a … -
FEMA Misses Congressional Deadline to Issue Guidance on Continued Housing Assistance for Hurricane Victims
January 31, 2006
FEMA has provided initial rental assistance payments to hundreds of thousands of families whose homes were damaged or destroyed by Hurricanes Katrina and Rita to help them secure temporary housing. Most of these families will exhaust these funds beginning in January and February, however, and FEMA has not issued clear guidance on … -
Despite Inclusion of “Marriage-Promotion” Funding, Budget Bill Would Penalize States That Provide TANF Assistance to Poor Married Families
January 31, 2006
In December, the House and Senate each passed slightly different versions of the budget reconciliation conference agreement.[1] The bills include a set of provisions related to the Temporary Assistance for Needy Families (TANF) block grant, including significant changes in the work requirements that states and families must meet. These changes differ significantly from previous versions of TANF … -
President's Health Care Tax Cut Proposals Are Likely To Weaken Employer-Based Health Insurance, Primarily Benefit High-Income People, and Worsen Deficits
January 31, 2006
In tonight’s State of the Union address and as part of the upcoming fiscal year 2007 budget, President Bush is expected to propose major new tax cuts related to health care.[1] Chief among them could be major expansions of Health Savings Accounts (HSAs) and a new income tax deduction for out-of-pocket medical costs. These … -
Capital Gains and Dividend Tax Cuts
January 30, 2006
The tax-cut package enacted in 2003 reduced to 15 percent the top tax rate on long-term capital gains and corporate dividends. Although these tax cuts are slated to expire in 2008, Congress is already debating as part of the current tax reconciliation process whether to extend these tax cuts for another two years, through 2010.[1] In addition, the President and other Administration … -
New CBO Data Indicate Growth in Long-Term Income Inequality Continues
January 29, 2006
The Congressional Budget Office recently released extensive data on household incomes and tax liabilities for 2003.[1] CBO issues the most comprehensive data available on changes in incomes and taxes for different income groups, capturing trends at the very top of the income scale that are not shown, for example, in Census data. The new CBO report highlights the degree to which … -
New Congressional Budget Office Estimates Indicate Millions of Low-Income Beneficiaries Would Be Harmed by Medicaid Provisions in Budget Bill
January 29, 2006
On January 27, the Congressional Budget Office issued a new analysis of the Medicaid provisions of the budget reconciliation conference agreement,[1] on which the House of Representatives is expected to vote February 1. The conference agreement, which the Senate passed 51-50 in late December with Vice President Cheney breaking the … -
New, Unnoticed CBO Data Show Capital Income Has Become Much More Concentrated At the Top
January 29, 2006
Congress is considering whether to extend reductions in the tax rates on capital gains and dividend income beyond their scheduled expiration date at the end of 2008. Proponents of these extensions often argue that stock ownership is widespread and thus the benefits of extending these tax cuts will be widespread as well. In other analyses, we have … -
Increases in CBO's Revenue Projections Do Not Show Tax Cuts Are Helping the Economy
January 27, 2006
New forecasts issued by the Congressional Budget Office confirm that if the tax cuts and Alternative Minimum Tax relief are extended, the nation faces large and growing deficits over the next ten years, with total deficits of between $3.5 and $4 trillion over that period.[1] While still quite high, CBO’s current deficit … -
New Survey Finds 3 To 5 Million Citizens’ Medicaid Coverage Jeopardized By Budget Reconciliation Bill
January 26, 2006
On February 1, the House of Representatives is scheduled to vote on the budget reconciliation agreement, which contains a little-noticed mandate requiring U.S. citizens covered by Medicaid to prove their citizenship by submitting a birth certificate or passport or lose their Medicaid coverage. … -
Press Release: Income Inequality Grew Across The Country Over The Past Two Decades: Early Signs Suggest Inequality Now Growing Again After Brief Interruption
January 26, 2006
In most states, the gap between the highest-income families and poor and middle-income families grew significantly between the early 1980s and the early 2000s, according to a new study by the Center on Budget and Policy Priorities and the Economic Policy Institute. The study is one of the few to … -
Pulling Apart: A State-by-State Analysis of Income Trends
January 26, 2006
Executive Summary The worst effects of the 2001 recession have largely been left behind. The return of economic growth is good news, but this good news is tempered by the fact that the troubling trends in income distribution during the last decades of the 20th century persist in the current … -
State Fact Sheets: Income Inequality Over the Past Two Decades
January 26, 2006
Alabama Kentucky North Dakota Alaska Louisiana Ohio Arizona Maine Oklahoma … -
African Americans and Social Security: The Implications of Reform Proposals
January 18, 2006
Social Security is a critical program for African Americans. Some 4.8 million African Americans currently receive Social Security benefits, and African Americans benefit disproportionately from many of Social Security’s features, including a progressive benefit structure and survivors and disability benefits. Proposals … -
Out in the Cold: How Much LIHEAP Funding Will Be Needed to Protect Beneficiaries from Rising Energy Prices?
Revised January 18, 2006
Last year, Congress provided nearly $2.2 billion for the Low-Income Home Energy Assistance Program (LIHEAP). LIHEAP helps very poor households, including many elderly, pay their home heating (and cooling) bills. Most of the assistance prevents heat from being turned off in northern states in the dead of winter, but some also … -
Press Release: Social Security Is a Good Deal for African Americans, Report Finds: Privatization Carries Special Risks for African Americans
January 18, 2006
African Americans receive modestly more in Social Security benefits for each dollar they pay in payroll taxes than whites do, explains a new report from the Washington, D.C.-based Center on Budget and Policy Priorities. The report is based on a wide range of studies conducted by government … -
Social Security Is a Good Deal for African Americans, Report Finds: Privatization Carries Special Risks for African Americans
January 18, 2006
Social Security is a critical program for African Americans. Nearly five million African Americans receive Social Security benefits; roughly half of them are retired workers, and the other half are either disabled workers or the spouses or children of disabled, retired, or deceased workers. African Americans benefit disproportionately from several features of the … -
Summary of TANF Work Participation Provisions in the Budget Reconciliation Bill
January 18, 2006
The budget reconciliation bill includes a set of provisions related to TANF and federal child care funding, including changes to TANF work participation rules.[1] This document provides a brief summary and a more detailed explanation of each change. In brief: Effective October 1, 2006, each state would be required to meet a 50 percent participation rate for all families … -
Press Release: South Carolina’s Revised Medicaid Plan Unlikely To Cut State’s Costs
January 11, 2006
New details contained in South Carolina’s revised proposal to replace its Medicaid program with a system of state-funded personal health accounts show the plan is unlikely to save the state money even as it deprives many beneficiaries of needed health care services, according to a new analysis by the Center on Budget and Policy Priorities. … -
Still Risky Business: South Carolina’s Revised Medicaid Waiver Proposal
January 11, 2006
On November 16, 2005, South Carolina requested federal permission to make radical changes in its Medicaid program. The request, which took the form of a proposed waiver of federal Medicaid rules, would affect more than 700,000 low-income South Carolina children, parents, and people with disabilities.[1] The November proposal revises … -
Assessing the Effects of the Budget Conference Agreement on Low-Income Families and Individuals
Revised January 9, 2006
Some Congressional leaders are claiming that the low-income provisions in the conference agreement on the budget reconciliation bill are modest and will not harm vulnerable families. Many of the legislation’s key provisions were altered behind closed doors in weekend negotiations, and the legislation was not released until after 1:00 the morning of December 19, just hours before … -
Drop in Deficit in 2005 Does Not Mean Tax Cuts Are Spurring Economic and Revenue Growth; New IRS Data Confirm Tax Cuts Lose Revenue
Revised January 6, 2006
According to final Treasury Department figures, the deficit for fiscal year 2005 was $319 billion, down significantly both from last year’s level and from projections made at the beginning of this year. This progress is due to an increase in tax collections from last year (and from what had been projected earlier this year). Some are using this fact to argue that the tax cuts … -
House Pension Bill Would Make Some 2001 Tax Cuts Permanent For The First Time
Revised January 6, 2006
Pension legislation passed by the House on December 15 contains a series of pension-related tax provisions that raise serious budgetary concerns and pose significant equity issues. The legislation (H.R. 2830, the Pension Protection Act of 2005) contains measures crafted by the Ways and Means Committee that would — for the first time — make permanent some of the tax cuts enacted … -
Policy Points: Do the Facts Support the President's Claims about the Economy?
January 6, 2006
In his speech in Chicago today, President Bush praised the economy’s recent performance and gave his policies a large amount of the credit. The fact that the economy is growing is not itself remarkable, since the American economy has always resumed growing after downturns. … -
State Budgets Would Be Squeezed Under Budget Conference Agreement
Revised January 6, 2006
The budget reconciliation conference agreement which passed the Senate would have a significant impact on state budgets. The agreement includes numerous changes to low-income programs in which states share costs with the federal government, such as Medicaid, Child Support Enforcement, and TANF. On the whole, CBO estimates indicate that over the next five years, the loss to states from reductions in … -
What Do the Across the Board Cuts Mean for Domestic Appropriations
Revised January 6, 2006
To comply with budget targets it set last April, Congress cut fiscal year 2006 funding for domestic programs by $9 billion, or 2.3 percent on average, below the 2005 level adjusted for inflation.[1] In addition to the specific cuts or increases contained in the 2006 appropriations bills, which netted to a cut of $9 billion, … -
Why the Application of the Expected Across-the-Board Appropriations Cut to Defense Is Likely To Be Purely Cosmetic
Revised January 6, 2006
Application of the one percent across-the-board appropriations cut to the Defense Department enacted in December is likely to be illusory. Defense funds that are reduced through the across-the-board cut now are likely to be fully restored this spring, when a supplemental appropriation for Iraq is enacted. Based on past Iraq supplementals, the supplemental is likely to be structured in a way that … -
New Requirement for Birth Certificates or Passports Could Threaten Medicaid Coverage for Vulnerable Beneficiaries
January 5, 2006
The Deficit Reduction Act, which was signed by the President on February 8th, contains a provision that would require all citizens applying for Medicaid or renewing their coverage to produce a passport or birth certificate to prove they are U.S. citizens. There would be no exceptions for any Medicaid applicants or beneficiaries, not even individuals … -
Press Release: New Documentation Rule Threatens Medicaid Coverage For Many
January 5, 2006
A bill nearing final passage in Congress that would cut programs such as Medicaid, student loans, and child support enforcement contains a little-noticed provision that would require all citizens applying for Medicaid to produce a passport or a birth certificate to prove they are U.S. citizens. The …
