This week at CBPP, we focused on the federal budget, federal taxes, state budgets and taxes, health care, and food assistance.
On the federal budget, Isaac Shapiro and others showed that adults in poverty are much better off financially if they get a job, work more hours, or receive a wage hike, debunking claims that the safety net discourages work. David Reich highlighted the recent decline in non-defense appropriations, which are nearing a record low as a share of the economy. Richard Kogan endorsed the Government Accountability Office’s finding that the federal government’s current accounting method for loan and loan guarantee programs is better than a “fair value” approach.
On federal taxes, Chuck Marr and Bryann DaSilva explained that low-income childless adults are the only group taxed into poverty and DaSilva showed that expanding their Earned Income Tax Credit would address the problem. Marr corrected GOP presidential candidate Donald Trump’s misstatement that the United States has the world’s highest taxes. We updated our backgrounders on where federal tax revenues come from and where they go.
On state budgets and taxes, Erica Williams discussed how several states that are heavily dependent on energy revenue have contributed to their budget problems by short-sighted tax cuts.
On health care, Jesse Cross-Call pointed out that the updated federal policy for helping finance Medicaid services for American Indians and Alaska Natives will improve the delivery of care and save states money.
On food assistance, Stacy Dean testified before the House Agriculture Committee, encouraging lawmakers to ensure that efforts to increase state flexibility in SNAP not weaken the program.