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New Medicaid Rules Would Limit Care for Children in Foster Care and People with Disabilities in Ways Congress Did Not Intend
Revised March 6, 2007
On December 4, the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services published interim final rules governing case management services provided by state Medicaid programs.[1] CMS claims the new rules are necessary to implement changes Congress made in the Deficit Reduction Act of 2005 (DRA). In fact, the rules go well beyond what … -
Policy Points: Many Missed Opportunities for Congress and the President in 2007
Revised December 21, 2007
Over recent months, federal policymakers considered measures to expand children’s health coverage, strengthen Medicare, make new investments in areas like education and medical research, and extend tax relief — while maintaining fiscal discipline. Congress and the President … -
Poverty and Hardship Affect Tens of Millions of Americans
December 20, 2007
During the holidays, many Americans make a special effort to help the less fortunate. Sadly, there is no shortage of families in need.[i] According to the latest government figures: 36.5 million Americans — roughly one in eight — live in poverty.[ii] Despite relatively strong economic growth since 2001, poverty has remained stubbornly high, and today’s … -
13 States Face Total Budget Shortfall of at Least $23 Billion in 2009; 11 Others Expect Budget Problems
December 18, 2007
For updated data on states facing budget gaps, please see: New Fiscal Year Brings No Relief From Unprecedented State Budget Problems Summary Thirteen states, including several of the nation’s largest, face a combined budget shortfall of at least $23 billion for fiscal 2009. Another 11 states expect budget problems next year or the year … -
Income Inequality Hits Record Levels, New CBO Data Show:
December 14, 2007
Real after-tax incomes jumped by an average of nearly $180,000 for the top 1 percent of households in 2005, while rising just $400 for middle-income households and $200 for lower-income households, according to new data from the Congressional Budget Office (CBO).[1] This starkly uneven growth brought income inequality to its highest level since at … -
Statement by Robert Greenstein on the Congressional Budget Office’s New Long-Term Budget Forecast
December 13, 2007
The new Congressional Budget Office report shows that rising health care costs are the largest driver of the nation’s long-term budget problems. But CBO’s projections also indicate that the costs of making expiring tax cuts — such as those enacted in 2001 and 2003 … -
Statement by Robert Greenstein, Executive Director, in Response to President Bush’s Veto of The Children’s Health Insurance Bill
December 12, 2007
With today’s veto, the President again struck down legislation that would do precisely what he promised in his 2004 re-election campaign — “lead an aggressive effort to enroll millions of poor children who are eligible but not signed up for government health insurance programs.… -
President's Vetoes Could Cause Half a Million Low-Income Pregnant Women, Infants, and Children to be Denied Nutritional Benefits in One of Nation’s Most Effective Programs
Revised December 10, 2007
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides nutritious foods, counseling on healthy eating, and health care referrals to low-income pregnant and postpartum women, infants, and children under age five who are at nutritional risk. Unlike other key low-income nutrition programs, such as food stamps or school meals, there … -
Second Children's Health Bill Makes Significant Changes to Focus More Heavily on Poor Children
Revised December 8, 2007
On November 30, Congress sent the President a revised version of bipartisan legislation to strengthen children’s health coverage (H.R. 3963). The bill includes substantial changes from the bill the President vetoed in October (H.R. 976) that directly address a number of concerns raised by the earlier bill’s opponents. … -
Policy Points: What’s Behind the Budget Battles Between the President and Congress?
December 7, 2007
In his conflicts with Congress over issues from taxes to children’s health insurance to appropriations bills, the President is casting himself as the defender of fiscal responsibility. His actions, however, tell a different story. In fighting congressional efforts to pay for tax-cut … -
Concerns about the State of the Economy Are Not a Good Reason to Waive Paygo for AMT Relief
December 6, 2007
Several weeks ago, the House of Representatives passed legislation that would provide Alternative Minimum Tax relief for 2007, extend other expiring tax provisions, and offset the cost with various revenue-raising measures. Some have argued that Congress should instead waive its Pay-As-You-Go (PAYGO) rules and deficit finance the cost of the AMT package. … -
Curbing Medicare Advantage Overpayments Would Strengthen Medicare
December 5, 2007
The Senate Finance Committee is planning to consider Medicare legislation averting a scheduled cut in Medicare physician payments. The legislation is also expected to modestly reduce the sizable overpayments now being made to private insurance plans that participate in the Medicare Advantage … -
New Children’s Health Legislation Would Not Allow Any Undocumented Immigrants to Enroll in SCHIP or Medicaid
December 4, 2007
President Bush has said he will veto the second bipartisan compromise bill passed by Congress (H.R. 3963) to reauthorize the State Children’s Health Insurance Program (SCHIP). The Administration claims, in part, that the bill “continues to allow SCHIP to cover ineligible individuals,” namely undocumented immigrants.[1] Some … -
The AMT's Growth Was Not "Unintended"
November 30, 2007
Various Administration officials, senators, and House members are urging Congress to waive its Pay-As-You-Go rules and deficit-finance the Alternative Minimum Tax (AMT) “patch.” The AMT’s explosive growth, they argue, was unanticipated and unintended, and so measures to prevent that growth should not have to be paid for. Even if the AMT’s growth were unanticipated, … -
2007 Farm Bill: Description of the House Agriculture Committee Nutrition Provisions
November 20, 2007
A straight extension of the farm bill with no policy changes, as some in Congress are reportedly advocating if the Senate cannot reach an agreement on floor debate, would lock in food stamp benefit cuts that affect more than 10 million food stamp recipients — including many low-income working families, seniors, and people with disabilities. These … -
A Tale of Two Bills: The Labor-HHS-Education and Defense Appropriations Bills
Revised November 16, 2007
President Bush has said he will veto the appropriations bill that funds the Departments of Labor, Health and Human Services, and Education for the coming fiscal year, while he plans to sign the bill funding the Department of Defense. The Administration says the funding Congress provides in the Labor-HHS-Education bill is … -
HUD Bill Avoids Deep Cuts in 2008
Revised November 16, 2007
Executive Summary Congress is expected to approve soon an appropriations bill (H.R. 3074) to fund programs administered by the Departments of Housing and Urban Development (HUD), Transportation, and a few smaller agencies. The President has threatened to veto this and other domestic appropriations bills that do not contain the level of … -
Labor-HHS-Education Bill – What’s at Stake
Revised November 16, 2007
Congress is poised to send the President a bill that provides funding for a broad array of domestic discretionary programs — that is, non-entitlement programs whose funding is provided each year through the annual appropriations process. The Senate on November 7 approved a bill (H.R. 3043) that includes funding for programs … -
The President’s Misleading Attack on Congress’s Appropriations Plan
November 14, 2007
In vetoing the appropriations bill funding the Departments of Labor, Health and Human Services, and Education, the President charged yesterday that Congress plans an irresponsible increase of $205 billion over the next five years in domestic discretionary spending (spending on domestic programs funded through the appropriations process) over the … -
Statement: Robert Greenstein on the President's Veto of the Labor-HHS-Education Appropriations Bill
November 13, 2007
We find it stunning for the President to reject a $5 billion increase for education, medical research and other priorities as unaffordable, while insisting that Congress finance the $51 billion cost of AMT relief through higher deficits instead of by closing tax loopholes exploited by multi-millionaires. The President’s action … -
Myths and Realities About Changing the Tax Treatment of Private Equity Fund Managers
November 8, 2007
Economists across the political system generally concur that eliminating the tax break for “carried interest” income, a form of compensation received by private equity fund managers, would improve the equity and efficiency of the tax system.[1] The tax code is more efficient when it creates a level playing field. The fact that carried interest income is taxed at the … -
House AMT "Patch" Bill is Fiscally Responsible
November 7, 2007
Later this week, the House of Representatives is expected to vote on legislation that would “patch” the Alternative Minimum Tax for 2007 (H.R. 3996). This analysis highlights three praiseworthy features of the tax package, which was adopted by the Ways and Means Committee November 1. The cost of the package is fully offset. Its adoption by the … -
Statement by Nicholas Johnson, Director of the State Fiscal Project, Center on Budget and Policy Priorities, on The Maryland Senate Budget and Taxation Committee’s Tax Bill
November 7, 2007
The tax bill passed by the Maryland Senate Budget and Taxation Committee is a disappointing step backwards from Governor O'Malley’s tax reform proposal. It bows to pressure from powerful corporate interests to abandon the closure of wasteful corporate tax loopholes. … -
The House Has Complied This Year With Its New “Pay-As-You-Go” Rule: But Greater Challenges Lie Ahead
November 7, 2007
In early January, the House of Representatives established a Pay-As-You-Go rule. The rule prohibits the House from considering any tax or entitlement legislation that would increase projected deficits over the coming ten-year period. Proposed entitlement increases must be fully offset, or “paid for,” by reductions in … -
What Would It Say about Congress’s Priorities to Waive PAYGO for the AMT Patch?
November 7, 2007
In January the House of Representatives reinstated “Pay-As-You-Go” (PAYGO) budgeting rules, and in May the Senate followed suit. PAYGO requires Congress to offset the cost of any legislation that increases entitlement spending or reduces revenues. As a CBPP analysis released today explains, Congress to date has complied with the PAYGO rules.[1] Both houses of … -
The Technology Council of Maryland’s Case Against Combined Reporting: A Rebuttal
November 5, 2007
Introduction and Summary In a letter to State Senator Rona E. Kramer and Delegate Brian J. Feldman dated October 29, 2007, the Technology Council of Maryland (TCM) states its opposition to Governor Martin O’Malley’s recommendation that Maryland adopt mandatory “combined reporting” under its corporate income tax. … -
Martinez Bill Would Weaken Children’s Health Coverage
November 5, 2007
Senator Mel Martinez (R-FL) has introduced legislation (S. 2193) intended to rally opponents of bipartisan children’s health legislation recently vetoed by President Bush, a revised version of which was passed by the House on October 25 and the Senate on November 1. The Martinez bill also has been introduced in the House, as H.R. 3888, … -
2007 Farm Bill: Description of the House Agriculture Committee Nutrition Provisions
Revised November 2, 2007
On July 27, 2007, the House of Representatives passed its 2007 Farm Bill: H.R. 2419, The Farm, Nutrition, and Bioenergy Act of 2007. The nutrition provisions include about $4 billion over five years in improvements for the Food Stamp Program and the Emergency Food Assistance Program (TEFAP), as well as numerous program oversight, … -
Summary Analysis of the Senate Agriculture Committee Nutrition Title
Revised November 2, 2007
On October 25, 2007, the Senate Agriculture, Nutrition and Forestry Committee passed by voice vote its farm bill proposal, “The Food and Energy Security Act of 2007.” Including improvements expected to be added to the bill by a manager’s amendment after the bill passed out of Committee, the nutrition provisions of the bill include about $4.2 … -
Press Release: Governor's Plan Would Reduce Income Taxes for Vast Majority of Maryland Residents
November 1, 2007
More than three-fourths of Maryland taxpayers would pay less in state income taxes under Governor O’Malley’s income-tax restructuring plan, and only the highest-income 2 percent of taxpayers would pay more, a Center on Budget and Policy Priorities analyst told state lawmakers Thursday. The General Assembly is considering this and … -
Testimony of Robert Greenstein, Executive Director, Center on Budget and Policy Priorities at the Hearing on the Fiscal Impacts of Controlling Carbon Emissions, House Budget Committee
November 1, 2007
Effective action to reduce greenhouse gas emissions is necessary to prevent costly and potentially catastrophic environmental and economic damages from climate change. The Center on Budget and Policy Priorities is not making recommendations about how much we need to reduce emissions; that is not our area of expertise and we leave those recommendations to … -
Testimony: Nicholas Johnson on Maryland Tax Rate Restructuring
November 1, 2007
Summary: The governor’s proposed income tax restructuring plan would change a nearly-flat Maryland income tax rate structure into a progressive rate structure. This is sound policy on several grounds: Most Marylanders would be better off under this element of the governor’s proposal. Data from the … -
Press Release: Joint Statement on the Need for Pay-As-You-Go Discipline
October 30, 2007
Issued Jointly With The four organizations joining in this statement have come together on a number of occasions in the past to express their concern about the threat that chronic deficits pose, and their support for Pay-As-You-Go rules (PAYGO) to help prevent the deficit situation from becoming worse. (See, for example, the statement of March 21, 2007 … -
State Corporate Tax Shelters and the Need for “Combined Reporting”
October 26, 2007
Executive Summary A growing number of states are adopting or considering a key corporate tax reform known as “combined reporting.” Most large corporations consist of a parent corporation and its subsidiaries; combined reporting effectively treats the parent and most or all of its subsidiaries as a single corporation … -
A Simple, Inexpensive Way for Maryland to Protect Certain Low-Income Workers from Tax Increases
October 26, 2007
Closing Maryland's budget shortfall will require significant tax increases, including some that will have a disproportionate impact on the state’s lowest-income workers. Governor O'Malley's proposal, for example, relies heavily on increases in the sales tax, tobacco tax, vehicle titling tax, and gambling revenues, all of which would hit … -
Additional Options for Revenue in Maryland
October 26, 2007
Executive Summary Maryland Governor Martin O’Malley has proposed a set of new revenue options for the state. The additional revenue is needed to close a projected budget deficit and continue to finance education, health care, transportation, and other public service at current-law levels. Without the additional revenue, the state would need … -
Options for Protecting Maryland’s Low- and Moderate-Income Families from Regressive Tax Increases
October 26, 2007
Executive Summary Maryland faces large budget deficits in the coming fiscal year and for the foreseeable future. Putting the state on secure fiscal footing will almost certainly require significant tax increases. Many of the tax increases currently under consideration would impose a disproportionate cost on Maryland’s low- and … -
Press Release: Maryland Governor's Tax Plan Would Improve State Revenue System, but Legislature Could Make Further Improvements
October 26, 2007
Maryland Governor Martin O’Malley’s revenue proposal would make a number of important improvements to the state’s tax system, but the legislature could go further by providing more tax relief to low-income families and increasing progressivity. “By closing corporate loopholes, making the income tax more progressive, … -
Statement by Robert Greenstein, Executive Director, on New SCHIP Legislation
October 25, 2007
Congressional negotiators have made significant changes in the SCHIP legislation President Bush vetoed in order to address key concerns raised by critics. Rather than welcome these changes, the Administration appears to be escalating its distortions of what the new bill … -
Ways and Means Committee Chairman Charles Rangel's Proposed Expansion of the EITC for Childless Workers
October 25, 2007
The tax reform plan released today by Ways and Means Committee Chairman Charles Rangel includes a sizable increase in the component of the Earned Income Tax Credit available to low-income working adults who are not raising minor children. Senators Barack Obama, Evan Bayh, and John Kerry and Representatives Bill Pascrell, John Yarmuth, and Keith … -
New Data Show Income Concentration Jumped Again In 2005
Revised October 24, 2007
Economists Thomas Piketty and Emmanuel Saez recently made available an updated version of their groundbreaking data series on U.S. income inequality.[1] The data are unique because of the detailed information they provide regarding income gains at the top of the income scale and because they extend back to 1913. The data offer important insight into the distribution … -
The Labor – H.H.S. – Education Veto in Context
October 24, 2007
President Bush has said he will veto the appropriations bill that funds the Departments of Labor, Health and Human Services, and Education for the coming fiscal year if Congress sends the bill to him with funding at the level either the House or Senate has approved.[i] The Administration says the funding provided in the House- and … -
Statement by Robert Greenstein, Executive Director, Center on Budget and Policy Priorities, on the Lieberman-Warner Climate Change Bill
October 18, 2007
We are encouraged to see two leaders on climate change taking this important step to reduce greenhouse gas emissions. The bill from Senators Lieberman and Warner is a significant step forward in climate-change policy. It falls short, however, of meeting the crucial goal of … -
Poor Children First — or Last?
October 17, 2007
The Bush administration has recently argued that the President favors providing health insurance to “poor children first” and vetoed bipartisan children’s health legislation because it violates this principle. On “This Week” on October 7, Health and Human Services Secretary Mike Leavitt stated: “The … -
Expanding Children’s Health Insurance and Raising Federal Tobacco Taxes Helps Low-Income Families
October 16, 2007
This report was issued jointly with: In explaining President’s Bush’s veto of bipartisan legislation to strengthen the State Children’s Health Insurance Program (SCHIP) and pay for it by raising federal tobacco tax rates, White House Press Secretary Dana Perino claimed that the tobacco increase would … -
Press Release: Florida Should Consider “Circuit Breaker” to Provide Well-Targeted Property Tax Relief
October 12, 2007
As Florida’s legislature prepares to once again consider property tax relief measures next week, a new report from the Center on Budget and Policy Priorities outlines a simple, well-targeted approach that is not being considered. Called a “circuit breaker,” it could provide substantial relief to up to 2.5 million … -
Targeted Property Tax Reform: Designing a Circuit Breaker for Florida
October 12, 2007
Property taxes in Florida are, on average, moderate when compared to those in other states. For example, Florida property taxes as a percent of residents' income ranked 19th in the nation in 2005.[1] In Florida as in most other states, however, families with lower incomes tend to pay higher property taxes relative to their incomes … -
Senate Republican Leadership to Seek Reconsideration of SCHIP Plan That Would Fail to Make Progress in Covering Uninsured Children
October 10, 2007
Senator Mitch McConnell, the Senate Minority Leader, plans to ask for reconsideration of the SCHIP legislation that he and Senate Minority Whip Trent Lott offered as an alternative during Senate floor debate on SCHIP on August 1. The McConnell-Lott proposal was defeated at that time on a 61-35 vote.[1] In contrast to the bipartisan … -
Policy Points: Bipartisan Legislation to Strengthen Children’s Health Care Focuses On Low-Income Children
October 5, 2007
The children’s health care bill President Bush recently vetoed would provide coverage by 2012 to 3.8 million children who would otherwise be uninsured. The vast majority of these children have low incomes, as the Congressional Budget Office (CBO) has shown. Of these children: … -
An Unlimited Estate Tax Exemption For Farmland Unnecessary, Open to Abuse, and Likely to Hurt, Rather than Help, Family Farmers
October 1, 2007
There is overwhelming evidence that the estate tax has never posed a significant problem for farmers. According to the Congressional Budget Office, only 1,659 farmers nationwide owed any estate tax in 2000, when the estate tax exemption stood at just one-third of its current level.[1] Some 1,521 of these estates — or 92 percent of them — had liquid assets that exceeded … -
Housing Vouchers Could Be at Risk in 2008
September 28, 2007
This fall, Congress will seek to finalize its appropriations bills for fiscal year 2008, including the Transportation-HUD bill, which funds “Section 8” Housing Choice Vouchers and other affordable housing programs. Section 8 vouchers are the nation’s leading source of housing assistance for low-income elderly, people with … -
Ensign Amendment Would Undercut Immigration Bill Goals by Imposing Unaffordable Tax Burdens on Many Immigrants
Revised September 28, 2007
An amendment to the Senate immigration bill filed by Senator John Ensign (R-NV) would prevent undocumented workers who are paying back taxes as part of legalizing their status from claiming the tax credits available to all other tax filers. It would also deny these workers any tax refunds the IRS might owe them because of overwithholding. As a result, undocumented workers seeking to … -
“Crowd-Out” Is Not the Same as Voluntarily Dropping Private Health Insurance for Public Program Coverage
September 27, 2007
As leading health policy experts have explained, under the fragmented U.S. health insurance system, virtually any effort to cover more of the uninsured — including efforts that rely on tax deductions or credits for the purchase of health insurance in the private market, as well as public program expansions — will result in some … -
CBO Estimates Show SCHIP Agreement Would Provide Health Insurance to 3.8 Million Uninsured Children
Revised September 25, 2007
New Congressional Budget Office estimates show that by 2012, a total of 3.8 million children who otherwise would be uninsured would have health care coverage under the bipartisan agreement reauthorizing the State Children’s Health Insurance Program (SCHIP) developed by House and Senate negotiators. The House is expected to consider … -
Charge That Bipartisan SCHIP Compromise Bill Aids Undocumented Immigrants Is False
September 25, 2007
Some opponents of the bipartisan SCHIP compromise legislation are charging that the bill opens Medicaid and the State Children’s Health Insurance Program (SCHIP) to illegal immigrants. This charge is false. The Provision at Issue The charge revolves around a provision of the new legislation that is designed to remedy serious … -
President’s Attack on Congressional Appropriations Plan is Misleading
September 24, 2007
In the escalating battle over the domestic appropriations bills for fiscal year 2008, the President and senior Administration officials have charged that congressional Democrats plan an irresponsible increase of $205 billion over the next five years in discretionary spending (i.e., spending on programs funded through the appropriations process). Yet this claim — which the President repeated in … -
Statement by Robert Greenstein, Executive Director, Center on Budget and Policy Priorities, on New Congressional SCHIP Agreement
September 21, 2007
Today’s agreement would extend health coverage to several million low-income uninsured children, a major accomplishment. Contrary to White House rhetoric, the bulk of the children who would gain coverage are poor and near-poor children who are uninsured, not … -
The President's Comments on Congress' SCHIP Plan
September 20, 2007
In today’s press conference, President Bush repeated a number of incorrect or misleading statements the Administration has made in recent months regarding congressional efforts to strengthen children’s health coverage through the SCHIP program. The most significant of these is, as the President said today: “I want . . . the Congress to be … -
Higher Taxes on Carried Interest Would Be Borne By Investment Fund Managers
September 19, 2007
In the past few weeks, the Senate Finance and the House Ways and Means Committee have both held hearings investigating the tax treatment of carried interest, a form of compensation prevalent in the private equity industry. As part of their contractual arrangement with investors, the managers of a private equity fund typically … -
Administration Moves to Eviscerate Efforts to Enroll Uninsured Low-Income Children in Health Coverage through the Schools
September 17, 2007
While deep disagreements emerged between Congress and the Bush Administration last year in the debate over reauthorizing the State Children’s Health Insurance Program (SCHIP), all sides agreed that states should do all they can to enroll low-income children who are currently eligible for Medicaid and SCHIP. And while the Administration issued … -
Collateral Damage: Children Can Lose Coverage When Their Parents Lose Health Insurance
September 17, 2007
A substantial body of research indicates that providing public health insurance coverage to low-income parents is an effective means of improving the enrollment of eligible, but uninsured, low-income children in public programs like Medicaid or SCHIP.[1] A recent study by Dr. Jennifer DeVoe and her colleagues at Oregon Science and Health … -
The Internet Tax Freedom Act and the "Digital Divide"
September 10, 2007
Congress is again considering whether to make the “Internet Tax Freedom Act” (ITFA) permanent. Enacted in 1998 and temporarily renewed in 2001 and 2004, ITFA banned new state and local taxes on “Internet access” services. States and localities were barred from imposing their sales taxes on the typical $10 to $50 monthly fee … -
CBO Analysis Shows Economic Benefits of Fiscal Sustainability Are Large and Nearly the Same Whether Taxes Are Raised or Spending Is Cut
September 10, 2007
The economic benefits of reducing long-run deficits are very large, and there is only a modest difference between the economic effects of shrinking deficits by raising taxes and doing so by cutting expenditures. This is the key conclusion of a recent Congressional Budget Office response to a request from Senator Judd Gregg (R-NH), the ranking … -
More Americans, Including More Children, Now Lack Health Insurance
Revised August 31, 2007
The number of uninsured Americans rose for the sixth consecutive year in 2006, to 47.0 million,[1], [2] and the number of uninsured children rose for the second straight year, to 8.7 million, according to Census data released on August 28. Between 1998, the year the State Children’s Health Insurance Program (SCHIP) was implemented, and 2004, the number of uninsured children fell every … -
Number and Percentage of Americans Who Are Uninsured Climbs Again in 2006
Revised August 31, 2007
New Census data show that in 2006, both the number and the percentage of Americans who are uninsured hit their highest levels since 1999, the first year for which comparable data are available, with 2.2 million more Americans — and 600,000 more children — joining the ranks of the uninsured in 2006. The new Census figures also show that while the overall poverty rate declined slightly … -
Renewing the “Internet Tax Freedom Act” Could Have an Especially Adverse Impact on Kentucky, Michigan, Ohio and Texas
Revised August 31, 2007
Congress is again considering whether to renew the “Internet Tax Freedom Act” (ITFA). Enacted in 1998 and temporarily renewed in 2001 and 2004, ITFA banned new state and local taxes on “Internet access” services. The primary goal of the law was to bar states and localities from imposing their sales taxes on the … -
Statement by Robert Greenstein on the 2006 Census Bureau Data on Poverty, Income, and Health Insurance
Revised August 31, 2007
The new Census figures are disappointing for the fifth year of an economic recovery —showing a significant decline in poverty for people over 65 but no significant decline in poverty for children or adults aged 18 to 64, and only a modest improvement in median income. In 2006, the poverty rate … -
Making the “Internet Tax Freedom Act” Permanent Could Lead to a Substantial Revenue Loss for States and Localities
Revised August 30, 2007
On May 23 and July 26, 2007, the Senate Commerce Committee and the Subcommittee on Commercial and Administrative Law of the House Judiciary Committee, respectively, held hearings on the “Internet Tax Freedom Act” (ITFA). ITFA was enacted in 1998 and renewed in 2001 and 2004. The law generally bars state and local taxation … -
Historical Averages Not a Meaningful Benchmark for Future Revenues
August 22, 2007
The “Mid-Session Review” that the Office of Management and Budget issued last month projects that revenues will be slightly above their 30-year average in 2007, measured as a share of the economy. The Administration and many of its supporters have cited this fact as evidence that current tax policies are generating an … -
Statement by Nicholas Johnson, Director of the State Fiscal Project, Center on Budget and Policy Priorities, on the National Conference of State Legislatures’ Survey of Fiscal Conditions
August 9, 2007
Today’s NCSL budget update should serve as a yellow flag to any states considering new tax cuts, which a number of states have enacted in recent months. State tax revenues aren’t keeping pace with the cost of providing services. Instead, many states are relying on past years’ surplus funds to balance their budgets, a sign of … -
House Health Legislation Would Curb Medicare Overpayments to Private Plans, While Aiding Medicare Beneficiaries Overall
Revised August 8, 2007
The House is considering major health legislation this week. The legislation would not only reauthorize the State Children’s Health Insurance Program and extend coverage to five million uninsured children but also would curb excessive payments now being made to private Medicare Advantage plans under the Medicare program and thereby … -
Addressing Longstanding Gaps in Unemployment Insurance Coverage
Revised August 7, 2007
Unemployment Insurance (UI) is a joint federal-state program designed to provide temporary income support to workers who have a demonstrated attachment to the labor force and lose their jobs due to a lay-off or for other economic reasons, or who must leave their jobs through no fault of their own. (See the box below for an … -
CBO Estimates Show Large Gains in Children's Health Coverage under Senate SCHIP Bill
Revised August 7, 2007
Congressional Budget Office estimates show that 4 million children who otherwise would be uninsured would have health care coverage by 2012 under the bipartisan children’s health legislation that the Senate Finance Committee approved on July 19 by a 17-4 vote. CBO estimates that 2.7 million of these children are uninsured children who … -
CBO Estimates Show House Bill Would Provide Health Insurance to 5 Million Uninsured Children
Revised August 1, 2007
Congressional Budget Office estimates show that by 2012, a total of 5 million children who otherwise would be uninsured would have health care coverage under children’s health legislation that the House is considering this week.[1] The coverage gains under this legislation are about 1 million higher than under the bipartisan bill … -
Lott-Mcconnell SCHIP Proposal Would Fail to Make Progress in Covering Uninsured Children
August 1, 2007
This week, the Senate is considering the “Children’s Health Insurance Program Reauthorization Act of 2007,” bipartisan children’s health legislation approved on July 19 by the Senate Finance Committee on a 17-4 vote. According to Congressional Budget Office estimates, this legislation would provide health … -
New Charges about How House Children's Health Bill Affects Undocumented Immigrants Are False
August 1, 2007
Rep. Nathan Deal has launched a new attack on House health insurance legislation that would cover about 5 million uninsured lower-income children, according to Congressional Budget Office estimates. Rep. Deal charged the bill opens Medicaid and the State Children’s Health Insurance Program (SCHIP) to illegal immigrants, encourages … -
State Expenditure Growth Slowing
July 31, 2007
State expenditure growth is projected to slow significantly for fiscal year 2008, which is the 12-month period that began July 1, 2007 in most states. During May, June, and early July, the Center on Budget and Policy Priorities conducted a phone and email survey of state legislative and executive budget officials to learn states’ actual General … -
Administration’s Proposed Tax Deduction for Health Insurance Seriously Flawed
July 31, 2007
In an attempt to revive its proposal to establish a new standard tax deduction for the purchase of health insurance, the Administration has injected the proposal into the congressional debate over renewing and strengthening the State Children’s Health Insurance Program (SCHIP). The Administration has threatened to veto the … -
An Analysis of the "Carried Interest" Controversy
July 31, 2007
This week, the Senate Finance Committee is scheduled to hold a second hearing on the tax treatment of “carried interest.” A carried interest is a right to receive a specified share (often 20 percent) of the profits ultimately earned by an investment fund without contributing a corresponding share of the fund’s financial capital. It is part of the standard … -
Barton-Deal SCHIP Bill Would Not Provide States Sufficient Funding Even to Maintain Current Caseloads
July 31, 2007
This week, the House is scheduled to consider health legislation developed by the chairmen of the House Energy and Commerce and the House Ways and Means Committees to reauthorize and expand the State Children’s Health Insurance Program (SCHIP). This legislation, known as the “CHAMP Act,” [1] would provide health … -
Private Plans Continue to Use Misleading Arguments to Oppose Reforms of Medicare Overpayments
July 31, 2007
This week, the House is scheduled to consider health legislation developed by the chairmen of the House Energy and Commerce and the House Ways and Means Committees to reauthorize and expand the State Children’s Health Insurance Program (SCHIP). This legislation, known as the “CHAMP Act,”[1] would not only reauthorize … -
Would Tax Incentives Be an Effective Way to Expand Health Coverage for Low-Income Children and Families?
July 31, 2007
In recent weeks, the Administration has threatened to veto legislation in Congress that would reauthorize the SCHIP program and extend health coverage to several million uninsured children. As an alternative, the Administration has touted the virtues of the private insurance market and attempted to revive consideration of its proposal to … -
House SCHIP Legislation Would Repeal Dubious “45-Percent Threshold” Provision
July 30, 2007
Legislation to extend the State Children’s Health Insurance Program and make various changes in Medicare, which the House is scheduled to consider this week, would repeal a so-called “45-Percent Threshold” provision affecting Medicare that was slipped into the 2003 Medicare prescription drug bill. Some lawmakers argue … -
Policy Points: The Week's Top Five Myths Regarding Congressional Efforts to Strengthen Children's Health Coverage
July 27, 2007
Myth #1: The bills before Congress to renew the State Children's Health Insurance Program (SCHIP) would vastly expand program eligibility. Fact: According to the nonpartisan Congressional Budget Office: 4.3 million of the 4.9 million otherwise-uninsured children who would gain coverage under the … -
Bipartisan Legislation Would Build on Housing Voucher Program's Success
Revised July 26, 2007
On July 12, 2007, the House of Representatives approved H.R. 1851, the Section 8 Voucher Reform Act (SEVRA) by a bipartisan vote of 333-83. SEVRA would make significant changes to the housing voucher program and also institute related changes in laws governing other housing assistance programs. Similar legislation is expected to be … -
Testimony: Robert Greenstein on Pay-As-You-Go Discipline Before the House Budget Committee
July 25, 2007
Chairman Spratt, Congressman Ryan, and members of the Committee, I appreciate the opportunity to appear hear today to explain why I think the pay-as-you-go discipline is important and appropriate, and why establishing a statutory pay-as-you-go rule to reinforce Congressional rules is a sound idea. My testimony will cover the following: … -
Congress to Consider Repeal of Medicare Demonstration Project Designed to Promote Privatization, Rather Than Yield Valid Results
July 23, 2007
Executive Summary The House Energy and Commerce Committee and the House Ways and Means Committee will begin work this week on major health care legislation. Among other proposals, they plan to consider repealing a provision of the 2003 Medicare drug law that requires a large-scale, six-year demonstration project under which private insurance … -
The Administration’s Dubious Claims about the Emerging Children’s Health Insurance Legislation
Revised July 20, 2007
Congress is considering legislation to reauthorize the State Children’s Health Insurance Program (SCHIP), a successful federal health program enjoying bipartisan support that, together with Medicaid, has reduced the proportion and the number of low-income children who are insured by about one third since 1997.… -
Informing the Debate about Curbing Medicare Advantage Overpayments
July 19, 2007
(Click on the questions below to go directly to the corresponding answer.) Do private plans cost more than it costs the regular Medicare program to cover the same beneficiaries? How do Medicare Advantage overpayments affect Medicare’s finances? How do Medicare Advantage overpayments affect beneficiary premiums? … -
Hawaii's Income Tax on the Working Poor: A Post-Session Update
July 18, 2007
On June 26, Hawaii Governor Linda Lingle signed SB 1882, which expands Hawaii's refundable low-income tax credit. The bill's passage follows a long debate about how best to cut taxes on Hawaii’s low-income working families, who face higher income taxes than such families in almost any other state.[1] SB 1882 provides important … -
The 2008 Labor-HHS-Education Appropriations Bill
July 18, 2007
The Bush Administration has threatened to veto almost all appropriations bills that provide more funding than the President has requested, such as the bill funding the Departments of Labor, Health and Human Services, and Education for fiscal year 2008, which starts October 1. The President has described congressional appropriations plans as … -
Statement by James Horney, Director of Federal Fiscal Policy, Center on Budget and Policy Priorities, on OMB’s Mid-Session Review
Revised July 13, 2007
Today’s increase in estimated federal revenues for the current year, which the Administration says shows its tax cuts are boosting economic growth, isn’t surprising and doesn’t really say anything about the effects of the tax cuts on the economy. Large mid-year increases in … -
The Effects of the Capital Gains and Dividend Tax Cuts On the Economy and Revenues
Revised July 12, 2007
With the fourth anniversary of the 2003 capital gains and dividend tax cuts just past and the Office of Management and Budget’s Mid-Session Review released today, supporters of making these tax cuts permanent are reiterating their claim that the tax cuts boosted the economy and increased federal revenues. For example, a release from the Senate Republican Policy Committee contends … -
Medicaid Documentation Requirement Disproportionately Harms Non-Hispanics, New State Data Show
July 10, 2007
Newly available data from three states show that white and African American children are much more likely than Hispanic children to have their Medicaid coverage delayed, denied, or terminated as a result of a citizenship documentation requirement that took effect last year. These data provide further evidence that the requirement, purportedly … -
Changes in Federal TANF Rules Could Help States Meet Welfare Reform Goals
June 29, 2007
The Deficit Reduction Act (DRA), enacted in early 2006, reauthorized the Temporary Assistance for Needy Families (TANF) block grant. The effect of the DRA is to significantly increase the proportion of TANF recipients that states would be required to engage in a specified set of work activities for a federally-prescribed number of hours each week. The law also grants broad new … -
Food Stamp Benefits Steadily Eroding in Value
June 22, 2007
Food stamp benefits average only about $1 per person per meal, and as a result of benefit cuts enacted in the 1996 welfare law, the purchasing power of most households’ food stamp benefits is eroding in value each year. In 2008, a typical working parent with two children will receive … -
The False "Public Versus Private" Choice for Children’s Health Coverage
June 21, 2007
As Congress considers the reauthorization of the State Children’s Health Insurance Program (SCHIP), groups like the Heritage Foundation are making a strong push to change the way coverage is provided to eligible low-income children.[1] They claim Congress must choose between “government-run health care” and private … -
The Fight Over Appropriations: Myths and Reality
June 21, 2007
The House and Senate appropriations committees recently established funding levels for each of the 12 appropriations bills for fiscal year 2008, and have begun producing bills that meet these targets.[1] The Administration has charged that these funding levels represent large, fiscally irresponsible increases in federal spending that would threaten fiscal stability and the economy. It has … -
The Problems with Property Tax Revenue Caps
June 21, 2007
Several states (Connecticut, Florida, Minnesota, New Jersey, Rhode Island, and Texas) have recently considered imposing severe caps on property tax revenue.[1] These caps restrict the amount that property tax revenue can increase from year to year to a low fixed percentage, a formula based on the inflation rate, or some combination of the two.… -
New Research Shows Simplifying Medicaid Can Reduce Children’s Hospitalizations
June 11, 2007
New research indicates that increasing the continuity of children’s Medicaid coverage reduces subsequent hospitalizations for chronic health conditions like asthma or diabetes. The research — a new study conducted by Dr. Andrew Bindman and his associates at the University of California at San Francisco, which was unveiled at a … -
Analysis of Sessions Amendment to Deny the EITC to People Working Here Legally as a Result of the Senate Immigration Bill (Amendment # 1234)
Revised June 7, 2007
The Senate yesterday adopted an amendment to the Senate immigration bill offered by Senator Jeff Sessions (R-AL). Undocumented immigrants already are ineligible for the EITC. The Sessions amendment would deny this important tax credit to low-income workers who have legal status.[1] This approach is inequitable and unwise. It … -
Analysis of Sessions Amendment to Deny the Eitc to Many Legal Permanent Residents (Amendment # 1235)
June 6, 2007
Senator Sessions has filed an amendment to the Senate immigration bill that would deny the Earned Income Tax Credit to hundreds of thousands of taxpayers already working in the country legally. Under the amendment, legal permanent residents — often called “green card” holders — would be ineligible for the EITC for the … -
CBO Estimate Shows the Senate Immigration Bill's Budget Impact Is Very Modest
Revised June 6, 2007
Yesterday the Congressional Budget Office issued an analysis that clearly refutes claims that the immigration bill being considered by the Senate would “bust the budget” and that indicates the bill would likely have little effect on deficits. CBO’s cost estimate of the legislation concludes that “the net impact on the unified … -
A Significant Number of Students in Every State Are Shut Out of Federal Higher Education Tax Credits
June 1, 2007
As early as next week, the Senate Finance Committee is expected to vote on legislation restructuring the higher education tax credits. The federal tax code includes two tax credits that offset tuition costs for students enrolled in higher education: the Hope Credit, worth up to $1,650, and the Lifetime Learning Credit, worth up … -
Can Incentives for Healthy Behavior Improve Health and Hold Down Medicaid Costs?
June 1, 2007
The impact of individual behavior on the cost of health care is attracting a great deal of attention from policymakers. A number of state Medicaid programs are offering rewards for healthy behavior or considering this step, assuming that financial incentives will improve the health of Medicaid beneficiaries and help hold down health care … -
Congress Should Increase HUD’s Budget to Prevent Families from Losing Assistance and Address Growing Needs
Revised June 1, 2007
The President’s budget for fiscal year 2008 proposes to cut $2 billion (5 percent) from the Department of Housing and Urban Development (HUD), compared to the 2007 funding level, adjusted for inflation.[1] The deepest cuts would be made in housing for the elderly and disabled (a 29 percent cut), Community Development Block Grants (a … -
The Congressional Budget Plan
Revised May 29, 2007
On May 16, House and Senate negotiators reached agreement on a Congressional budget plan for fiscal year 2008 (S Con Res 21). Both the House and the Senate passed the conference report (S Rpt 110-153) the next day, and the report has now gone into effect as the approved fiscal year 2008 budget plan. This paper provides a brief overview of the conference … -
Discretionary Funding Under the New Congressional Budget Plan
May 16, 2007
On May 11, the Director of the Office of Management and Budget sent a letter to Congress on behalf of the Bush Administration, threatening to veto any 2008 appropriations legislation that exceeds the levels requested by President Bush. As apparent justification for the threat, the OMB letter charged that the congressional budget plans approved by the Senate … -
Comparing Public and Private Health Insurance for Children
May 11, 2007
In considering the pending reauthorization of the State Children’s Health Insurance Program (SCHIP), some have recommended that Congress use federal funds to subsidize purchasing private health insurance rather than expanding public health insurance, like Medicaid or SCHIP.[1] Some may reflexively assume that private health insurance is … -
Making Higher Education Tax Credits More Available To Low- And Moderate-Income Students: How and Why
May 10, 2007
Senate Finance Committee Chairman Max Baucus has indicated that his committee will soon mark up education tax incentives. In addressing this issue, the Finance Committee should start by considering how to improve the existing tax credits for higher education. In particular, it should consider reforms that … -
Statement by Robert Greenstein on CBO Report on SCHIP
May 10, 2007
The Congressional Budget Office today released a report analyzing the State Children’s Health Insurance Program (SCHIP), which must be reauthorized by Congress this year. Congress is now considering how to strengthen and improve the SCHIP and Medicaid programs and make further significant progress towards reducing the number of uninsured low-income children in the United States.… -
Press Release: Governor's Property-Tax Cap the Wrong Solution for Connecticut, Analyst Advises
May 4, 2007
Governor Rell’s proposed cap on property taxes is the wrong solution for the recently rising property tax burdens faced by many Connecticut households, the deputy director of the Center on Budget on Policy Priorities told state lawmakers Friday. In testimony before the General … -
Illinois' Proposed Gross Receipts Tax
May 3, 2007
Governor Blagojevich of Illinois has proposed a new revenue source, a gross receipts tax (GRT), to provide funds for a major health care expansion, public education, property tax relief, and to help address the state’s long-standing budget problems. A GRT is a low-rate tax on the receipts of all types of businesses. The … -
Press Release: Pennsylvania Should Preserve and Strengthen Governor's Health Proposal, Analyst Advises
May 3, 2007
Pennsylvania lawmakers should preserve and strengthen key elements of Governor Rendell’s health care proposal, an analyst from the Center on Budget and Policy Priorities told the House Insurance Committee today. The proposal, now before the House as the Pennsylvania Health … -
Testimony of Judith Solomon House Bill 700, The Pennsylvania Health Care Reform Act, House Insurance Committee
May 3, 2007
Thank you for the opportunity to testify before you today on House Bill 700, the Pennsylvania Health Care Reform Act. My name is Judith Solomon. I am a Senior Fellow at the Center and work primarily on state Medicaid policy issues. I commend the Committee for providing an opportunity for substantial public input on this … -
Alternative Approaches to AMT Reform
Revised April 30, 2007
The Subcommittee on Select Revenue Measures of the House Ways and Means Committee recently held hearings on the Alternative Minimum Tax, and Subcommittee Chairman Richard Neal has said he is developing a proposal for permanent, revenue-neutral AMT reform. According to news accounts, the proposal will take the form of an AMT … -
The Food Stamp Program’s Critical Role in Helping Children
April 26, 2007
The Food Stamp Program is the Nation’s Biggest Child Nutrition Program The Food Stamp Program provides families with 13 million children with resources to purchase an adequate diet. This represents almost one in five children in the United States. Half of all food stamp recipients are children (and another 27 percent are adults who live with those children). Almost 80 percent of … -
Video: Facts, Fairness, and Fiscal Responsibility: Commemorating the Center's 25th Anniversary
April 24, 2007
The Center on Budget and Policy Priorities celebrated its 25th Anniversary on Tuesday, April 24, 2007 at the Washington Hilton Hotel. Over the past 25 years, the Center’s blend of rigorous policy analysis, innovative policy development, media outreach, and strategic advocacy has contributed … -
Video: Honoring Richard W. Boone
April 24, 2007
As director of the Field Foundation, Dick Boone conceived of the Center on Budget and Policy Priorities, in 1982, to protect programs for the nation's poor. He recruited Robert Greenstein to start it. This video honors his work in founding the Center and his extraordinary career dedicated to … -
What the 2007 Trustees' Report Shows about Social Security
April 24, 2007
Executive Summary On April 23, the Social Security Board of Trustees released the 67th annual report on the program’s financial and actuarial status. The report projects that Social Security’s trust fund reserves will be exhausted in 2041, one year later than in last year’s projection. In 2041, Social Security will be … -
A Brief Analysis of the Social Security and Medicare Trustees’ Report
April 23, 2007
The new Trustees’ report shows that action will need to be taken to shore up Social Security’s and Medicare’s finances. In evaluating the new report, several points should be kept in mind. The most serious financing problems are in Medicare. They primarily stem not from the nature of the Medicare program … -
Statement by Robert Greenstein on the New Report from the Medicare Trustees
April 23, 2007
Today’s report shows why it is so important for Congress to stand up to the health insurance companies and eliminate the large overpayments Medicare is making to private health insurance companies. Those overpayments, which the insurance companies have launched a … -
How Strong Are State Budgets?
April 20, 2007
A new report from the National Conference of State Legislatures finds some improvement in state budget conditions for the current fiscal year (FY 2007), which in most states ends June 30, 2007, and for the upcoming fiscal year.[1] But the improvements that have occurred since budgets’ enactment last spring have been, at best, modest in … -
Forthcoming Medicare Trustees’ Report May Contain Dubious "Medicare Funding Warning"
April 20, 2007
While Medicare faces a serious long-term financing problem that must be addressed, the annual report of the Social Security and Medicare trustees to be released on April 23 may contain a dubious “Medicare Funding Warning” that is based on a deeply misleading measure of the program’s health. Under a last-minute provision slipped … -
Private Plan Overpayments Weaken Medicare’s Financing and Hasten the Program’s Insolvency
April 20, 2007
Under the Medicare program, beneficiaries may elect coverage through private “Medicare Advantage” plans rather than through the traditional fee-for-service Medicare program. Although private plans were introduced into Medicare to spur competition and reduce program costs, both the … -
Reducing Disparities in Health Coverage for Legal Immigrant Children and Pregnant Women
Revised April 20, 2007
A key health policy success of the past decade is the substantial reduction in the number of uninsured children, primarily due to improvements in Medicaid and the creation of the State Children’s Health Insurance Program (SCHIP).[1] However, while there are fewer uninsured citizen children, the percentage of low-income immigrant children who lack … -
Facts About African Americans in the Food Stamp Program
April 19, 2007
African Americans Benefit Disproportionately from the Food Stamp Program One in three food stamp households is headed by an African American. More than a third of food stamp benefits — over $10 billion per year — are issued to African-Americans. (According to Census data, African Americans make up about 12 percent of the … -
Facts About Latinos in the Food Stamp Program
April 19, 2007
Latinos Benefit Disproportionately from the Food Stamp Program One in five food stamp households is headed by a Latino. A fifth of food stamp benefits — nearly $6 billion per year — are issued to Latino households. (According to Census data, Latinos make up about 15 percent of the U.S. population.) More than 5 million … -
Op-Ed: Are Americans Overtaxed?
April 17, 2007
No one likes paying taxes – least of all Americans. But, despite well-worn assertions to the contrary, Americans are not paying too much – at least not by historical standards, not compared to other developed countries, and most importantly, not in light of the revenues needed to maintain the size of government that … -
Rainy Day Funds: Opportunities for Reform
April 16, 2007
States are in considerably better fiscal shape than they have been since 2001. State revenues have grown rapidly over the last few years, in marked contrast to the sluggish growth or declines in revenues between 2001 and 2004. This is good news. However, a return to budget deficits is inevitable at some point.… -
CBO Provides New Evidence That the 2001 And 2003 Tax Cuts Have Only Modest Economic Effects and Do Not Pay For Themselves
April 13, 2007
A new analysis by the Congressional Budget Office finds that extending the 2001 and 2003 tax cuts could result in a modest increase in the number of hours that people work. However, any “dynamic” revenue gains associated with the resulting increase in wages and salaries would pale in comparison with the cost of extending the tax cuts. Those … -
Low-Income and Minority Beneficiaries Do Not Rely Disproportionately on Medicare Advantage Plans
Revised April 12, 2007
The Medicare Payment Advisory Commission (MedPAC), Congress’ expert advisory body on Medicare payments, reported this month that Medicare is losing billions of dollars each year because of excessive payments to private insurance plans through the Medicare Advantage program. (Under that program, Medicare beneficiaries may elect … -
Options Exist for Offsetting the Cost of Extending Health Coverage to More Low-Income Children
Revised April 12, 2007
There is growing consensus that SCHIP reauthorization should make substantial progress toward covering all uninsured low-income children. SCHIP reauthorization legislation thus will require significant increases in federal funding, so states have sufficient federal SCHIP funds both to maintain their existing SCHIP programs and to enroll … -
Census Revises Estimates of the Number of Uninsured People
April 5, 2007
On March 23, the Census Bureau announced that it has revised estimates of the number of uninsured people for 2004 and 2005, after it detected an error in how data from its Current Population Survey have been tabulated. The number and percentage of people who were uninsured in 2005 changed from 46.6 million (15.9 percent of the population) to … -
Press Release: Several States Considering Closing Major Corporate Tax Loopholes
April 5, 2007
Governors in six states have recommended that their state adopt a key reform to outlaw a variety of abusive income-tax-avoidance strategies practiced by corporations such as Wal-Mart, a new Center on Budget and Policy Priorities report explains. Eighteen states had already adopted the reform, … -
President's "Affordable Choices" Initiative Provides Little Support for State Efforts to Expand Health Coverage
April 3, 2007
The large and growing number of Americans without health care coverage is increasingly a focus of attention, especially at the state level.[1] A number of states are now considering proposals to expand coverage, and several states have already adopted such plans. The federal government has an important role to play in these efforts.… -
CBO Provides New Evidence That the 2001 and 2003 Tax Cuts Have Only Modest Economic Effects And Do Not Pay For Themselves
March 29, 2007
In a new study, Thomas Piketty and Emmanuel Saez, economists who have done groundbreaking work on the historical evolution of income inequality in the United States, examine how the progressivity of the federal tax system has changed over time.[1] Unlike previous analyses, theirs examines effective federal tax rates going back to 1960, including income, payroll, corporate, and estate taxes, … -
New Study Finds "Dramatic" Reduction Since 1960 In The Progressivity of the Federal Tax System
March 29, 2007
In a new study, Thomas Piketty and Emmanuel Saez, economists who have done groundbreaking work on the historical evolution of income inequality in the United States, examine how the progressivity of the federal tax system has changed over time.[1] Unlike previous analyses, theirs examines effective federal tax rates going back to 1960, including income, payroll, corporate, … -
Ryan Budget Plan Would Increase Deficits, Exacerbate Inequality
March 29, 2007
When the House of Representatives debates the congressional budget plan for fiscal year 2008, Rep. Paul Ryan, the Ranking Republican Member of the House Budget Committee, will offer a substitute for the budget plan that the Budget Committee approved on March 23, 2007.[1] This analysis focuses on four aspects of the Ryan substitute. The tax and entitlement policies in the substitute … -
Share of National Income Going To Wages and Salaries at Record Low in 2006
Revised March 29, 2007
Commerce Department data released today show that the share of national income going to wages and salaries in 2006 was at its lowest level on record with data going back to 1929.[1] The share of national income captured by corporate profits, in contrast, was at its highest level on record.[2] These findings reflect weak overall growth in wages and salaries — and rapid growth in … -
Tax Foundation Figures Do Not Represent Typical Households' Tax Burdens
Revised March 29, 2007
Each year, the Tax Foundation releases 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, many pundits and policymakers have misinterpreted the Tax Foundation’s report as reflecting the tax … -
State Earned Income Tax Credits and the "Overpayments" Issue
March 28, 2007
The federal Earned Income Tax Credit is a tax credit for low- and moderate-income working families. The EITC is widely hailed for its success in subsidizing work, reducing poverty and making the tax code fairer. For these reasons, 20 states have enacted EITCs that piggyback on the federal credit and thereby further its successes. … -
Despite the Rhetoric, Budget Would Make Nation’s Fiscal Problems Worse and Further Widen Inequality
Revised March 28, 2007
The President says he wants to promote fiscal responsibility and address growing inequality, but his budget fails on both counts. In fact, it would make both problems worse. In a sign of the President’s misguided priorities, his budget puts extremely large tax cuts for the most affluent Americans ahead of the needs of low- and middle-income … -
President's Budget Calls for Deep Cuts in a Wide Range of Domestic Programs
Revised March 28, 2007
Under the Administration’s budget, domestic discretionary programs — the programs that are funded each year through the annual appropriations process, other than defense and international programs — are slated for sizable reductions over the next five years. The budget calls for these cuts to start in 2008, when domestic discretionary programs as a whole would be funded … -
The Alternative Minimum Tax, The President's Budget, and the Congressional Budget Resolutions
March 28, 2007
This week, the House of Representatives will consider the budget resolution that the House Budget Committee approved March 22. The House Budget Committee plan adheres to the Pay-As-You-Go (PAYGO) budget rules that have been in force in the House since January. These rules require that the cost of any legislation that increases entitlement spending or reduces revenue be offset. … -
State Fact Sheets: The Impact of State Income Taxes on Low-Income Families in 2006
March 27, 2007
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. … -
The Impact of State Income Taxes on Low-Income Families in 2006
March 27, 2007
Poor families in many states face substantial state income tax liability for the 2006 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 15 of the 42 states, poor single-parent families of three pay income tax.… -
Press Release: Georgia Taxes Working-Poor Families Deeper into Poverty
March 27, 2007
Working poor families in Georgia with incomes well below the federal poverty line face state income tax bills, 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. Georgia’s “tax threshold” (the income … -
Press Release: Hawaii’s Taxation of Working-Poor Families Remains among Worst in Nation
March 27, 2007
Income tax bills for Hawaii’s working-poor families remain 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. The tax cut package that was passed last year and is set to take effect … -
Press Release: State Income Taxes Pushing Many Working-Poor Families Deeper into Poverty
March 27, 2007
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) … -
Tax Foundation Estimates of State and Local Tax Burdens Are Not Reliable
March 27, 2007
In March 2007, 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 estimate of state and local taxes paid by residents of that … -
Policy Points: Now Comes The Hard Part
March 23, 2007
In a fundamental change from recent congressional budget practices, the House Budget Committee and the full Senate have approved budget plans that restore “pay-as-you-go” discipline and require that the costs of tax cuts or entitlement expansions be fully offset. In addition, … -
Key Argument Against Applying Pay-As-You-Go To Tax Cuts Does Not Withstand Scrutiny
March 22, 2007
In early January the House of Representatives instituted a “pay-as-you-go” rule, under which entitlement expansions and tax cuts — including the extension of expiring provisions of law that expand entitlement programs or cut taxes — must be paid for through offsetting entitlement reductions or tax increases. (PAYGO rules do not … -
The House Budget Committee's Budget Plan
Revised March 22, 2007
The House Budget Committee voted early this morning along party lines to approve a budget plan that the full House is scheduled to consider next week. This budget, which is very similar to the one approved by the Senate Budget Committee last week, marks an important first step in restoring fiscal responsibility in Congressional budgeting. [1] Restoring … -
Joint Statement on the Need for Pay-As-You-Go Discipline
March 21, 2007
Issued Jointly With The four organizations joining in this statement have warned that large, chronic budget deficits pose a threat to the economic health of our nation. For that reason, we strongly support current efforts to reestablish and comply with pay-as-you-go discipline in the Congressional budget process, which would establish … -
The 2001 and 2003 Tax Cuts and Small Business
March 21, 2007
The Bush Administration and Congressional supporters of the 2001 and 2003 tax cuts have often asserted that these tax cuts, and especially the reductions in the top two income tax rates, are of great value to small business. They argue that failure to extend these tax cuts would cause significant harm to small business owners. An examination of the relevant data demonstrates, … -
The Property Tax Circuit Breaker
March 21, 2007
Many individuals and families who pay a high share of their income in property taxes are eligible for “property tax circuit breakers”— refunds provided by the state government to those whose property tax payments are deemed too great. Some 18 states deliver roughly $3 billion per year in circuit breaker programs.[1] … -
A Frigid Forecast for the Sunshine State: Proposed Revenue Cap as Damaging as Colorado’s TABOR
March 20, 2007
Recently, the Speaker and other leaders of Florida’s House of Representatives unveiled details of their comprehensive property tax relief proposal. One component is a constitutional limit on state and local revenue growth.[1] This proposal deserves a great deal of attention because it is almost a carbon copy of Colorado’s Taxpayer Bill of Rights … -
Lower Taxes and Economic Growth: Response to a Flawed Analysis
March 20, 2007
When the Speaker and other leaders of Florida’s House of Representatives released their plan to roll back property taxes and place a tight growth limit on state and local revenues, they included a report in their release by the firm of Arduin, Laffer & Moore that claims lower taxes will lead to higher economic growth. This report takes an … -
Economic Effects of the Pay-As-You-Go Rule
March 19, 2007
The budget resolution approved March 15 by the Senate Budget Committee would reinstate in the Senate the Pay-As-You-Go budget rule that was in force during the 1990s. (The House of Representatives reintroduced the PAYGO rule several months ago.) PAYGO requires that the costs of any legislation that increases entitlement spending or decreases revenues be offset. Thus, if adhered … -
Have the 2001 and 2003 Tax Cuts Made The Tax Code More Progressive?
March 19, 2007
With debate beginning on the Senate budget resolution, congressional supporters of the 2001 and 2003 tax cuts have begun recycling old arguments for extending all of these tax cuts. Among these is the claim that the tax cuts have made the tax code more progressive. The reality is that the tax cuts have made the tax code more regressive. A progressive tax code is one that makes the … -
The Senate Budget Committee's Budget Plan
Revised March 19, 2007
The Senate is scheduled during the week of March 19 to consider a budget plan that the Senate Budget Committee adopted March 15 on a party-line vote. This budget marks an important first step in restoring fiscal responsibility in Congressional budgeting. Restoring Pay-As-You-Go The budget plan — known as a budget resolution — is notable for … -
Policy Points: Addressing Some Misconceptions About the Senate Budget Plan
March 16, 2007
The new Senate budget resolution is a bigger break with recent congressional budget practices — and a larger step in the direction of fiscal responsibility — than some initial media reports suggest. The plan’s most important element is the restoration of … -
Fact Sheet: Congress Has a Number of Options to Pay for Extending Health Coverage to More Low-Income Children
March 14, 2007
There is growing consensus that SCHIP reauthorization should make substantial progress toward covering all uninsured low-income children. The cost, however, will be substantial. Immediately enrolling the roughly 6 million children who are eligible for publicly funded coverage but … -
Statement By Jim Horney and Robert Greenstein on the Senate Budget Committee Plan
March 14, 2007
The budget plan being unveiled today by Senate Budget Committee Chairman Kent Conrad represents a fundamental and important change in budget policy. In contrast to budgets of recent years that simply assumed that new entitlement spending and tax cuts would be financed by additional borrowing, … -
Administration Proposal Would Cut Over 300,000 People Off Food Stamps
Revised March 13, 2007
The President’s budget includes a provision that would cut the Food Stamp Program by $740 million over the next five years (and by $1.65 billion over ten years) by taking more than 300,000 low-income people off the program in an average month.[1] The Administration would achieve these savings by stripping states of flexibility provided in … -
CBO Estimates President's SCHIP Proposal Would Lead to Large Enrollment Declines and Funding Shortfalls
March 13, 2007
On March 9, the Congressional Budget Office issued detailed estimates of the President’s fiscal year 2008 budget proposal to reauthorize the SCHIP program, including estimates of SCHIP enrollment levels and of the federal SCHIP funding shortfall that states will experience over the next five years.[1] The CBO estimates show: Under the … -
Clearing Up Confusion on the Costs of Covering Uninsured Children Eligible for Medicaid or SCHIP
March 13, 2007
In recent days, several media accounts have cited some Congressional offices from both parties as saying that a Congressional Budget Office memo issued last month[1] shows that the cost of immediately covering all uninsured children who are eligible for Medicaid or the State Children’s Health Insurance Program (SCHIP) would be $32 billion over five years.[2] Since CBO places the net cost … -
How Should Policymakers Treat The Budget For Non-Defense "Discretionary" Programs?
March 13, 2007
As Congress prepares a budget resolution that will (among other things) set funding limits for discretionary programs for fiscal year 2008, it is appropriate to examine funding trends for these programs in the context of the nation’s overall budgetary situation. Discretionary programs include defense and homeland security spending, international affairs programs, and domestic programs … -
New Medicaid Citizenship Documentation Requirement is Taking a Toll: States Report Enrollment Is Down and Administrative Costs Are Up
Revised March 13, 2007
A new federal law that states were required to implement July 1 is creating a barrier to health-care coverage for U.S. citizens — especially children — who are eligible for health insurance through Medicaid. The new law, a provision of the Deficit Reduction Act of 2005, requires U.S. citizens to present proof of their … -
SCHIP Reauthorization: President’s Budget Would Provide Less than Half the Funds that States Need to Maintain SCHIP Enrollment
Revised March 13, 2007
The President’s fiscal year 2008 budget proposes to reauthorize the State Children’s Health Insurance Program (SCHIP) for five years but provides less than half of the funding needed for states to maintain their existing SCHIP caseloads, let alone to make progress in covering more uninsured low-income children. Under the President’s … -
Congress Has Not Favored the Food Stamp Program Over Farm Programs
March 12, 2007
Because expenditures for farm programs have declined in recent years while food stamp expenditures have grown, some advocates of farm programs have argued that Congress has treated the Food Stamp Program more favorably than farm programs — and that farm programs therefore deserve more … -
Do Budget Data Show That the Food Stamp Program Has Been Treated More Favorably Than Farm Programs in Recent Years?
March 12, 2007
Since enactment of the 2002 farm bill, expenditures for farm programs have declined while food stamp expenditures have grown. Some farm-program advocates have cited these figures as evidence that the Food Stamp Program has been treated more favorably than farm programs and that farm programs therefore are the ones that deserve more favorable treatment … -
Testimony: Barbara Sard, Director of Housing Policy, Center on Budget and Policy Priorities
March 9, 2007
I appreciate the opportunity to testify concerning the proposed Section 8 Voucher Reform Act. I am Barbara Sard, director of housing policy at the Center on Budget and Policy Priorities. The Center is an independent, nonprofit policy institute that conducts research and analysis on a range of federal and state policy issues, with … -
A TABOR at Heart: South Carolina's H. 3295 Spending Cap Proposal
March 9, 2007
A proposed bill in South Carolina to limit state spending — H. 3295 — contains the core element of Colorado’s Taxpayer Bill of Rights (TABOR). It limits spending using a formula based on population growth plus inflation. H. 3295 can therefore be expected to cause a deterioration in public services in South Carolina similar … -
Families’ Food Stamp Benefits Purchase Less Food Each Year
Revised March 9, 2007
Food stamp benefits average only about one dollar per person per meal (to be precise, the figure is $1.05 in 2007). In addition, as a result of benefit cuts enacted as part of the 1996 welfare law, the purchasing power of most households’ food stamp benefits is eroding in value each year. In 2008, food stamp benefits for a typical working parent … -
Video: Making America Stronger: U.S. Food Stamp Program
March 8, 2007
NOTE: This video contains some graphic images of the effects of malnutrition and hunger on children. Making America Stronger commemorates the 30th anniversary of the of the reforms achieved by the Food Stamp Act of 1977 by telling the story of how food stamps dramatically reduced the … -
Georgia’s Increased TANF Work Participation Rate is Driven by Sharp Caseload Decline
March 6, 2007
Overview Georgia’s success at increasing its TANF work participation rate has been touted as a welfare reform model for other states as they seek ways to meet the new work participation requirements associated with the Deficit Reduction Act changes to the Temporary Assistance for Needy Families (TANF) block grant. An examination of available data on Georgia’s TANF program and … -
Statement by Robert Greenstein Regarding CBO's Preliminary Analysis of the President's 2008 Budget Request
March 2, 2007
The new CBO analysis confirms that the President’s budget is fiscally irresponsible. It finds that deficits over the next ten years will be $1.4 trillion larger under the President’s budget than if no changes in policies are made — essentially because of the … -
The New TANF Requirements and Individuals with Disabilities
March 1, 2007
The TANF provisions of the Deficit Reduction Act increase the effective TANF work participation rate — a measure of the proportion of TANF recipients engaged in federally countable work activities for a prescribed number of hours each week — states will be required to meet. States failing to meet these new standards are subject to … -
Cost-Sharing and Premiums in Medicaid: What Rules Apply?
February 28, 2007
A substantial body of research shows that higher co-payments are likely to cause low-income people to decrease their use of necessary health care services. Low-income people with chronic health conditions are the most vulnerable to harm from cost-sharing, as they use the most health care services. Research also shows that premiums can make it … -
"Small Business" Tax Package in Senate Minimum Wage Bill Poses Fiscal Risks
February 27, 2007
On February 1, the Senate passed a minimum wage bill that includes a package of business tax cuts. The cost of these tax cuts is $8.3 billion over the ten years from 2007 to 2016. On February 16, the House of Representatives passed a much smaller package of business tax cuts, the cost of which is $1.5 billion between 2007 and 2016 (and $1.3 billion between 2007 and 2017[1]). … -
CBO Estimates That States Will Face Federal SCHIPShortfalls of $13.4 Billion over Next Five Years
February 26, 2007
On February 23, the Congressional Budget Office issued estimates of the federal funding shortfalls states will face if annual funding for the State Children’s Health Insurance Program (SCHIP) is frozen at the current funding level of $5 billion a year, as is assumed under the budget “baseline.” (A federal funding shortfall occurs … -
Freezing SCHIP Funding In Coming Years Would Reverse Recent Gains In Children's Health Coverage
Revised February 22, 2007
Due in large part to the State Children’s Health Insurance Program (SCHIP), the percentage of low-income children in the United States without health coverage has fallen by one-third since SCHIP was created in 1997, despite the erosion of private health coverage over this period. More than 4 million low-income children, most … -
President's Budget Would Cut Deeply Into Important Public Services and Adversely Affect States
February 21, 2007
The Administration’s proposed budget for 2008 calls for sizable cuts over the next five years in domestic discretionary programs — the programs (other than defense and international programs) that are funded each year through the annual appropriations process. The reductions would start in 2008, when domestic discretionary programs as a whole would be funded below the levels … -
Why The Cost of AMT Relief Should Be Included in Estimates of the Cost of Extending the President's Tax Cuts
Revised February 20, 2007
The President’s budget estimates that extending the 2001 and 2003 tax cuts would cost $1.7 trillion over the next decade (2008-2017). (A figure of $1.6 trillion has been cited by a number of media outlets, but this number leaves out the increased outlays that will result from extending the refundable tax credit expansions enacted in 2001; the Administration’s estimate of the … -
A State EITC Is a Cost-Effective Way to Ease Hawaii’s High Income Tax Burden on the Poor
February 14, 2007
Hawaii continues to impose a higher income tax burden on low-income working families than almost any other state. A costly tax cut enacted in 2006 did little to address this problem. As a result, Hawaii continues to collect income tax from families with income thousands of dollars below the poverty line. And families in poverty … -
Myths and Realities About the Alternative Minimum Tax
February 14, 2007
The Alternative Minimum Tax was created in 1969 to ensure that the highest-income households could not exploit loopholes, exclusions, and deductions to avoid paying any federal income tax. The AMT acts as a stop-gap tax system, with taxpayers owing their regular income tax or AMT liability, whichever is higher. Because … -
Press Release: Hawaii’s Tax Burdens on Poor among the Nation’s Largest; State EITC Would Provide Targeted Relief
February 14, 2007
Hawaii levies among the nation’s highest income taxes on low-income working families and its national ranking is worsening by some measures, according to a report from the Center on Budget and Policy Priorities. Creation of a state Earned Income Tax Credit, one of two policy … -
Testimony of Robert Greenstein on Funding for Domestic Discretionary Programs
February 14, 2007
I am Robert Greenstein, executive director of the Center on Budget and Policy Priorities. The Center is an independent, nonprofit policy institute that conducts research and analysis on a range of federal and state policy issues, with particular emphasis on fiscal policies and policies affecting low- and moderate-income families. We receive no … -
The Administration Again Proposes to Shift Federal Medicaid Costs to States
February 14, 2007
In its new budget, the Administration proposes cuts in federal Medicaid funding that total $24.7 billion over the next five years and $60.9 billion over ten years through a combination of legislative changes and regulatory action. [1] These reductions are more than five times as large over the next five years as the federal Medicaid cuts enacted by the Congress last year … -
State Corporate Tax Disclosure: The Next Step in Corporate Tax Reform
February 13, 2007
Executive Summary Data from numerous sources suggest that something is seriously wrong with the state corporate income tax. The share of tax revenue supplied by this tax in the 45 states that levy it fell from more than 10 percent in the late 1970s, to less than 9 percent in the late 1980s, to less than 7 percent today. The effective … -
Implementing the TANF Changes in the Deficit Reduction Act
February 9, 2007
In the coming months, states will face key choices as they decide the next direction for their Temporary Assistance for Needy Families (TANF) programs. After a lengthy and contentious reauthorization process, Congress enacted changes to TANF in the Deficit Reduction Act of 2005 (DRA) that substantially increase the proportion of assistance recipients who must … -
Loss of SSI Aid is Impoverishing Thousands of Refugees
February 8, 2007
Thousands of refugees and other legal immigrants who were permitted to relocate permanently to the United States because they face persecution in their home countries now confront destitution as a result of losing federal subsistence aid. Extremely poor refugees and other humanitarian immigrants who are unable to work because they are … -
President’s Budget Would Cut Food for 440,000 Low-Income Seniors
Revised February 8, 2007
President Bush’s fiscal year 2008 budget would eliminate funding for the Commodity Supplemental Food Program (CSFP), terminating food assistance to 440,000 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 … -
Testimony of Robert Greenstein, Executive Director, Before the Committee on Agriculture, Nutrition and Forestry
Revised February 8, 2007
Thank you for providing me with the opportunity to testify today. I am Robert Greenstein, executive director of the Center on Budget and Policy Priorities. The Center is a nonprofit institution here in Washington, D.C. that conducts research and analysis both on fiscal policy matters and on an array of policy issues affecting low- and moderate-income … -
How Much Would A State Earned Income Tax Credit Cost in 2008?
February 7, 2007
This report was updated on March 5, 2008 to reflect new data. Click here to view the new analysis. Twenty 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 2007 legislative session. … -
Federal Grants to States and Localities Cut Deeply in Fiscal Year 2008 Federal Budget
February 6, 2007
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 compensate for declining federal funds. … -
Press Release: New Medicaid Documentation Requirement Hurting Enrollment and Raising States’ Costs, Study Finds
February 2, 2007
A recent federal requirement that U.S. citizens document their citizenship status when they apply for or renew their Medicaid coverage is reducing Medicaid enrollment, particularly among low-income children, and raising state administrative costs, according to a report by the Center on Budget and Policy Priorities. … -
The Effects of the Federal Budget Squeeze on Low-Income Housing Assistance
February 1, 2007
Executive Summary Federal housing assistance programs for low-income families face growing budget challenges. Housing costs have grown faster than most families’ incomes in recent years, and a growing number of low-income families — including many working-poorfamilies — face housing costs that are unaffordably high. Yet … -
Cuts in Federal Housing Assistance Are Undermining Community Plans to End Homelessness
February 1, 2007
Executive Summary Five years ago, the Bush Administration announced a commitment to end chronic homelessness and reduce other types of homelessness within ten years.[2] If successful, this important initiative would alleviate the severe hardships endured by many of the approximately 3 million Americans who experience homelessness every year, including … -
Maine Could Tax More Services under Its Sales Tax
February 1, 2007
Maine’s sales tax could be modernized to yield more revenue and make the sales tax fairer. Maine taxes very few services under its sales tax; the sales tax is largely levied on purchases of tangible goods. Yet production and consumption have been shifting in the U.S. economy — and in Maine’s economy — from goods to services … -
Revenue Losses from Repeal of the Alternative Minimum Tax Are Staggering
Revised February 1, 2007
As is increasingly well known, a growing number of taxpayers will become subject to the Alternative Minimum Tax over the next ten years if relief from the tax (which has been provided by Congress on a year-to-year basis) is not extended. A growing fraction of those affected by the AMT will be middle- or upper-middle class families. The Urban … -
Two High Income Tax Cuts Not Yet Fully in Effect Will Cost Billions Over the Next Five Years Freezing the Tax Cuts at 2007 Levels Would Yield Significant Savings
February 1, 2007
On January 5, the House of Representatives voted to reinstate the “Pay-As-You-Go” (PAYGO) budgeting rule, and Democratic leaders have promised that the Senate will follow suit. Because PAYGO requires that legislation that increases entitlement spending or reduces revenues be paid for, the rule increases the need to find offsets to pay for high priority legislation and to … -
Testimony of Robert Greenstein on Economic Security and Long-term Budget Projections
January 30, 2007
I appreciate the invitation to appear before you today. I direct the Center on Budget and Policy Priorities, a nonprofit policy institute that conducts research and analysis on fiscal policy matters, as well as on programs and policies for low-income families and individuals. Last winter, the Center was asked by the Carnegie Roundtable on Economic … -
Health Insurance “Connectors” Should Be Designed to Supplement Public Coverage, Not Replace It
January 29, 2007
In 2006, Massachusetts enacted legislation intended to achieve universal health coverage in the state.[1] The law has attracted a great deal of attention, and a number of states and other organizations are looking at whether the Massachusetts plan can be adapted for use elsewhere to achieve universal coverage or at least reduce the number of uninsured.… -
Press Release: New Long-Term Budget Projections Paint Grim Picture, Show Need For Health Care Reform, Responsible Tax Policies
January 29, 2007
A new set of long-term budget projections issued by the Center on Budget and Policy Priorities — the first projections to incorporate the new ten-year estimates issued last week by the Congressional Budget Office — show that the nation’s long-term fiscal situation is grim. They also shed light on … -
The Long-Term Fiscal Outlook Is Bleak
January 29, 2007
In 2006, the federal government ran a deficit of $248 billion, or about 2 percent of the economy. Deficits are projected to average about 2 percent of GDP over the next ten years, assuming the 2001 and 2003 tax cuts are extended. After that, the fiscal situation is expected to deteriorate markedly. In this analysis, we present new projections for the … -
There Is No General “Entitlement Crisis”
January 29, 2007
As is well known, the United States will face grave budget challenges in coming decades. In a new set of federal budget projections through 2050, we find that if current policies remain unchanged, federal expenditures will increase substantially as a share of the economy and revenues will fall short of covering expenditures by increasing amounts, leading to exploding … -
Improving State Fiscal Policies in The 2007 Legislative Sessions
Revised January 26, 2007
State policymakers can make substantial improvements to their state fiscal systems in 2007 legislative sessions. This paper is a guide to relevant Center on Budget and Policy Priorities analyses that describe some opportunities for improvement as well as challenges that states may face this year. Each of these analyses … -
If You're Going to Do Social Policy Through the Tax Code, Do it Right
January 24, 2007
The most contentious issues in tax policy are not going to be settled in the next two years. President Bush and the Democratic Congress are unlikely to come to a sustainable, long-term agreement on the level of revenue — debates on extending the tax cuts or letting some of them expire are likely a matter for the next president and the next Congress. … -
New CBO Report Shows Only Modest Fiscal Improvement
January 24, 2007
Several key findings and conclusions emerge from the new Congressional Budget Office report on the budget and the economy issued today.[1] The CBO report shows significant improvement in the ten-year budget outlook, but the improvement is not nearly as large as a casual reader of the report might think. Part of what appears to be an … -
New CBO Data Show Income Inequality Continues to Widen
January 23, 2007
The Congressional Budget Office recently released extensive data on household incomes for 2004.[1] CBO issues the most comprehensive and authoritative data available on the levels of and changes in incomes and taxes for different income groups, capturing trends at the very top of the income scale that are not shown in Census data. The new CBO data document that income inequality continued to … -
Policy Points: Examining the President's Recent Claim about Tax Cuts, Revenues, and the Economy
January 23, 2007
In a January 3 Wall Street Journal opinion piece, President Bush made the following assertion: “It is also a fact that our tax cuts have fueled robust economic growth and record revenues.” He argued that the budget should be balanced by 2012 but that his tax cuts should be … -
Statement of Robert Greenstein on Budget and Health Care Tax Issues in State of the Union
January 23, 2007
On Budget Policy In committing his Administration to a balanced budget by 2012, the President has acknowledged that deficits matter. This is progress. But there are reasons to doubt the strength of the President’s newfound interest in fiscal discipline. First, his budget is likely … -
The New Pay-As-You-Go Rule in The House of Representatives
January 12, 2007
On January 5 the House of Representatives adopted a “Pay-As-You-Go” or PAYGO Rule as part of its package of Rules for the 110th Congress.[1] This memorandum briefly describes the rule and includes some “questions and answers” about how it is intended to work. Summary of the PAYGO Rule. The new House PAYGO rule establishes a point of order in the House of … -
Factsheet: Expanded Presidential Power under Senate “Line-Item Veto” Unlikely To Improve Fiscal Discipline
January 10, 2007
In the 109th Congress, the Republican-controlled Senate Budget Committee approved the Legislative Line Item Veto Act of 2006, a variation of an Administration proposal, as part of a larger budget process bill (S. 3521). Senator Judd Gregg (R-NH) intends to offer that line-item veto proposal … -
Research Findings Cast Doubt on Argument That Estate Taxes Harm State Economies
January 9, 2007
In June 2001, President Bush signed federal legislation to phase out the federal estate tax. This legislation repeals the federal estate tax by 2010 and also effectively repealed by 2005 the state “pickup” taxes through which states share in federal estate tax collections. States can prevent this loss of revenue by … -
Press Release: Maine Should Build on its Strengths in Addressing Fiscal and Economic Challenges, Expert Advises
January 8, 2007
Maine should both strengthen existing methods of providing property-tax relief and promote economic growth through investments in areas like tourism and higher education, according to Iris Lav, deputy director of the Washington, DC-based Center on Budget and Policy Priorities, in a speech … -
A $7.25 Minimum Wage Would Be a Useful Step in Helping Working Families Escape Poverty
January 5, 2007
In the early 1990s there was basic agreement that parents working full time should not have to raise their children in poverty. While liberals and conservatives sometimes differed on the means to reach this goal, they agreed with the core principle. The yardstick used to measure achievement of this goal was whether a minimum-wage earner … -
Statement by James Horney, Director of Federal Fiscal Policy on Reinstatement of the Pay-As-You-Go Rule
January 5, 2007
Today’s House vote to reinstate the pay-as-you-go rule marks a significant and welcome first step in restoring the fiscal discipline that has been sorely lacking in Washington. During the 1990s, a similar pay-as-you-go rule proved to be an important tool in turning deficits into surpluses.… -
State Revenue Losses From the Federal "Domestic Production Deduction" Will Double in 2007
January 2, 2007
In 2004, the federal government created an entirely new corporate tax break that is costing not only the federal government but also 29 states a large, and growing, amount of money. Known as the “domestic production deduction,” the tax break allows many corporations to claim a tax deduction equal to a percentage of certain … -
Chartbook: Improving Children's Health - The Roles of Medicaid and SCHIP
January 1, 2007
This chartbook summarizes current knowledge about the health insurance coverage and health needs of low-income* children in the United States and the roles that Medicaid and the State Children’s Health Insurance Program (SCHIP) — the joint federal-state, publicly funded health insurance programs for children — play in improving children’s health care access …
