Center on Budget: Comprehensive News Feed

Policy Basics: The Child Tax Credit

Wed, 11 Nov 2009 11:54:59 -0500

The Child Tax Credit, designed to help offset the cost of raising children, is worth up to $1,000 per child. Taxpayers eligible for the credit subtract it from the total amount of federal income taxes they would otherwise owe. For example, if a couple with two children would owe $5,000 in taxes without the credit, they would owe $3,000 in taxes with it, because the credit would reduce their tax bill by $1,000 for each of their children. Refundability The child credit is …

Additional Federal Fiscal Relief Needed to Help States Address Recession's Impact

Wed, 11 Nov 2009 09:51:05 -0500

Summary States face a serious fiscal problem that could force them to institute additional deep budget cuts and tax increases, weakening the fragile economic recovery and harming vulnerable children, seniors, and people with disabilities, among others. The federal assistance that states received for their Medicaid programs under this year’s economic recovery legislation is scheduled to end with a “cliff” on December 31, 2010, and the assistance …

State Earned Income Tax Credits: 2009 Legislative Update

Tue, 10 Nov 2009 09:56:40 -0500

An Earned Income Tax Credit (EITC) modeled on the federal program of the same name is now offered in 23 states and the District of Columbia as a way to reduce taxes and supplement wages for low- and moderate-income working families. A large body of evidence has shown that the state and federal EITCs serve a number of important public policy goals. States that enact EITCs can reduce child poverty, cut taxes for low-income families, and increase the incentive to work.…

Podcast: The October Unemployment Report and What It Means for the Economy

Fri, 06 Nov 2009 11:21:05 -0500

The jobs report for October is discussed by Chief Economist, Chad Stone. Duration: 2:35

House Health Bill's High-Income Surcharge is Sound and Well Targeted

Fri, 06 Nov 2009 12:09:15 -0500

A 5.4 percent surcharge on couples with incomes over $1 million, a key financing feature of the House health reform bill, is sound and well targeted. It would affect just a fraction of 1 percent of taxpayers, a group whose incomes have soared and tax burdens have fallen in recent years, and would have only a modest impact on small businesses. Reforming the health care system to provide universal health coverage and slow the growth of health care costs is an urgent national …

House Health Bill Would Expand, Strengthen Coverage for Children and Families

Fri, 06 Nov 2009 12:29:54 -0500

Summary The health reform bill that House Democratic leaders introduced on October 29 (H.R. 3962) would provide affordable, comprehensive health insurance coverage to 36 million Americans who otherwise would be uninsured, according to the Congressional Budget Office. [1] This is 7 million more otherwise-uninsured people than CBO estimates would gain coverage under the Senate Finance Committee bill. These 36 million Americans include millions of children and parents; for many …

Statement: Chad Stone, Chief Economist, on the October Employment Report

Fri, 06 Nov 2009 13:21:02 -0500

Today’s jobs report shows that although the economy turned up in the third quarter, the labor market did not. The unemployment rate crossed into double digits in October, and payrolls shrank for the 22nd straight month. The economy is in a very deep hole and faces a long climb back to full employment. Policymakers can make that climb easier by extending or bolstering key provisions of the economic recovery legislation that the Administration and Congress enacted …

Video Clip: NBC affiliate WVTM in Birmingham, Alabama Cites CBPP on State Income Tax Threshold

Wed, 04 Nov 2009 17:28:23 -0500

NBC affiliate WVTM in Birmingham, Alabama Cites CBPP on State Income Tax Threshold Duration: 0:30

Podcast: Maine and Washington Reject TABOR

Thu, 05 Nov 2009 14:08:02 -0500

Senior advisor Iris Lav discusses voters’ rejection of TABOR — a strict state spending restriction — in Washington and Maine, and the implications for other states. Duration: 4:00

Video: Michael Mazerov Discusses Closing Pennsylvania Corporate Tax Loopholes on WGAL TV

Mon, 02 Nov 2009 13:25:46 -0500

Duration: 3:32

Video: Michael Mazerov Discusses Closing Pennsylvania Coporate Tax Loopholes on WGAL TV

Thu, 05 Nov 2009 10:08:19 -0500

Press Release: State Income Taxes Push Many Working-Poor Families Deeper Into Poverty

Wed, 04 Nov 2009 11:18:38 -0500

Sixteen states taxed working-poor families deeper into poverty last year, according to a new report from the Center on Budget and Policy Priorities. Income tax bills on poor families in those 16 states ranged from a few dollars to several hundred dollars, which is a significant amount for a family struggling to make ends meet, the report said. “Undermining families’ efforts to work their way out of poverty is never a good idea,” said Phil Oliff, the …

The Impact of State Income Taxes on Low-Income Families in 2008

Wed, 04 Nov 2009 11:45:23 -0500

Summary While some working-poor families get help lifting themselves out of poverty through exemptions from state income taxes, in many states they continue to face substantial state income tax liability. An analysis of state income tax systems for the 2008 tax year shows that: In 16 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 12 states, poor single-parent families of three …

Statement: Iris Lav, Senior Advisor, on Defeat of “TABOR” Initiatives In Maine and Washington

Wed, 04 Nov 2009 09:10:32 -0500

Yesterday’s votes in Maine and Washington show clearly that TABOR’s crippling and arbitrary spending limits remain unpopular around the country. Anti-government groups have made serious efforts to enact TABORs in 20 states since 2004 — and they have failed every time. While these groups will likely target other states in 2010, there is little reason to believe they will have more success. By rejecting TABOR, officially Question 4 in Maine and I-1033 in …

Podcast: Protecting Low-Income Consumers in Climate Change Legislation

Tue, 03 Nov 2009 18:02:32 -0500

The nuances of climate change legislation, and how the Senate and House bills will protect low-income families, are discussed by the Center’s Chief Economist, Chad Stone. Duration: 3:38

Audio Clip: Michael Leachman Discusses Stimulus and Job Creation on National Public Radio

Sat, 31 Oct 2009 15:31:49 -0400

Michael Leachman Discusses Stimulus and Job Creation on National Public Radio Duration: 1:17

Berkley Estate Tax Bill Would Add Billions to Deficit While Benefiting Only Wealthiest 1 in 500 Estates

Mon, 02 Nov 2009 10:57:23 -0500

A new estate tax bill introduced by Representative Shelley Berkley (D-NV) and others would cost $119 billion more over the first decade (2012-2021) than extending the tax under its current rules as the President has proposed, yet would benefit only the nation’s wealthiest 0.2 percent of estates since they are the only ones subject to the tax under the current rules. In subsequent decades, the Berkley proposal (H.R. 3905) would be even more expensive compared to …

House Health Reform Bill Expands Coverage and Lowers Health Cost Growth, While Reducing Deficits

Sat, 31 Oct 2009 11:59:46 -0400

The comprehensive health reform legislation that House Democratic leaders unveiled on October 29 would make significant progress in three critical areas: expanding health coverage and ensuring that such coverage is affordable, slowing the growth in health care costs, and instituting essential reforms in the health insurance market. Moreover, the bill’s cost is more than fully offset; that is, the legislation would reduce budget deficits by $104 billion over ten years, …

New Climate Bill in Senate Provides Funding for Low-Income Consumers but Amount Falls Short of Need

Thu, 29 Oct 2009 13:59:01 -0400

The Clean Energy Jobs and American Power Act (S.1733) introduced by Senators John Kerry (D-MA) and Barbara Boxer (D-CA) represents a notable achievement, as it continues to move Congress forward toward taking needed action to address global climate change. The Kerry-Boxer bill, like the Waxman-Markey bill that the House approved in June, makes the protection of low-income households a basic goal. Unfortunately, the bill in the Senate currently falls short of providing …

Podcast: Understanding the Senate Finance Committee's Health Reform Bill

Tue, 27 Oct 2009 17:03:31 -0400

The Senate Finance Committee’s health reform plan is discussed by Senior Fellow, Judy Solomon. Duration: 4:06

The Administration's October 30 Data Release on Jobs Created by the Economic Recovery Law: What it Will Tell Us and What it Won't

Wed, 28 Oct 2009 14:47:14 -0400

The Obama Administration’s October 30 release of data on jobs created and saved by the American Recovery and Reinvestment Act (ARRA), which the Administration and Congress enacted early this year, will capture only a portion of the jobs created and saved due to ARRA’s limited reporting requirements. ARRA’s reporting system covers only about 16 percent of ARRA expenditures through September 30. Most of ARRA’s distributed dollars to date have gone …

Video Clip: Bob Greenstein Discusses Controlling Costs in Senate Health Reform Bill on PBS' Nightly Business Report

Tue, 27 Oct 2009 13:50:10 -0400

Video Clip: Bob Greenstein Discusses Controlling Costs in Senate Health Reform Bill on PBS’ Nightly Business Report Duration: 2:22

Podcast: Understanding the Senate Health Reform Bill

Tue, 27 Oct 2009 16:01:51 -0400

The Senate Finance Committee’s health reform plan is discussed by Senior Fellow, Judy Solomon. Duration: 4:06

Video: Judith Solomon Discusses Affordability, Individual and Employee Mandates in Health Reform on Fox Business News

Mon, 26 Oct 2009 12:32:39 -0400

Duration: 6:07

Washington Times Op-Ed: Robert Greenstein on the Deficit — Don't Make Things Worse

Tue, 27 Oct 2009 13:47:08 -0400

We recently updated our long-term projections of federal spending, revenues and deficits, and they confirm what budget experts both inside and outside the government have concluded: The nation is on an unsustainable fiscal course, facing unprecedented deficits that, if left unaddressed, will seriously weaken our economy.

Proposed Expansions of Homebuyer Tax Credit Would Be Highly Inefficient and Squander Federal Resources

Tue, 27 Oct 2009 10:38:52 -0400

Executive Summary Members of Congress are considering extending — and possibly substantially expanding — the $8,000 homebuyer tax credit enacted as part of the American Recovery and Reinvestment Act (ARRA) of 2009. The credit, which is available to first-time homebuyers with incomes up to $150,000 (up to $75,000 for individuals), expires on December 1 of this year. The evidence strongly indicates that Congress should show restraint, especially in considering …

Provision Under Consideration for Merged Senate Health Bill Would Harm Needy Families:

Mon, 26 Oct 2009 16:24:19 -0400

A family of three earning $27,465 a year before taxes — that is, at 150 percent of the poverty line — would have to pay $1,318 a year for health coverage under a proposal that Senate negotiators are considering for a merged health reform bill that they would bring to the Senate floor. This is more than such a family would pay under either the Senate Finance Committee health bill or the bill that the Senate Health, Labor, Education, and Pensions (HELP) …

Provision Under Consideration in Merger of Senate Health Bills Would Harm Needy Families:

Mon, 26 Oct 2009 15:58:19 -0400

Audio Clip: Jim Horney Discusses Cost-of-Living Increase for Social Security on National Public Radio

Thu, 22 Oct 2009 11:38:03 -0400

Jim Horney Discusses Cost-of-Living Increase for Social Security on National Public Radio Duration: 3:45

Podcast: Climate Change Testimony

Wed, 21 Oct 2009 17:25:22 -0400

The Center’s Chief Economist, Chad Stone, testifies before the Senate Committee on Energy and Natural Resources on how low-income households will be affected by climate change policy. Duration: 7:24

Hunger, Crowding, and Other Hardships Are Widespread Among Families in Poverty

Tue, 06 Oct 2009 11:43:16 -0400

Two recent, little noticed government reports spotlight the strained living conditions of millions of U.S. families. One report shows that the number of Americans threatened by hunger inched upward for four straight years from 1999 to 2003, with one in eight people falling in this category in 2003. The other report examines a long list of hardships that are tied to poverty status. Our own analysis, combining measures used in that report, finds that 8 million poor and …

Would Borrowing $2 Trillion for Individual Accounts Eliminate $10 Trillion in Social Security Liabilities?

Tue, 06 Oct 2009 11:43:36 -0400

Administration officials have been downplaying the significance of the $2 trillion in transition costs required by some individual accounts plans, by comparing that cost to the unfunded liability in Social Security over an infinite time horizon, which totals more than $10 trillion. For example, White House Press Secretary Scott McClellan responded recently to a question about how the White House would pay for the $2 trillion transition cost by arguing “It's a savings, because …

Did the Appropriations Bill Provide a Sufficient Increase in Low-Income Energy Assistance to Cover Spiraling Home Heating Costs?

Tue, 06 Oct 2009 11:45:28 -0400

Because of large increases in home heating costs in recent months, the funding level that Congress provided for the Low-Income Home Energy Assistance Program (LIHEAP) [1] in the recently enacted omnibus appropriations bill for fiscal year 2005 is not sufficient to cover the expected large increases in home heating costs. Many poor households assisted by the program — the majority of which include a person who is elderly or disabled [2] — may face considerable …

Reducing Paperwork and Connecting Low-Income Children with School Meals:

Tue, 06 Oct 2009 11:45:37 -0400

Overview In enacting the Child Nutrition and WIC Reauthorization Act of 2004, Congress made several changes in the eligibility determination process for free and reduced-price school meals.[1] (The eligibility determination process has two parts: “certification,” in which children are approved to receive meal benefits, and “verification,” in which school districts obtain documentation of eligibility for a small sample of certified children.) The …

Number of Unemployed Going Without Federal Benefits Hits Record 3 Million

Tue, 13 Oct 2009 11:49:22 -0400

Since late December, when the federal Temporary Extended Unemployment Compensation program stopped providing additional aid to individuals exhausting their regular unemployment benefits, a record number of jobless workers have exhausted their regular benefits, gone without federal aid, and received neither a paycheck nor an unemployment check. Based on actual figures through August and the author’s estimates through mid-October: The three-million figure. From late …

Testimony: Chad Stone, Chief Economist, on Climate Policy Impact on Low-Income Households

Wed, 21 Oct 2009 09:57:34 -0400

Chairman Bingaman, Ranking Member Murkowski, and other members of the Committee, thank you for the opportunity to testify on this important topic. The focus of my testimony will be on how low-income households will be affected by climate change policy and the allocation of greenhouse gas emissions allowances. The essential points of my testimony can be summarized as follows: Low-income households bear a disproportionate burden of the costs associated with effective …

Excise Tax on Very High-Cost Health Plans Is a Sound Element of Health Reform

Tue, 20 Oct 2009 13:28:37 -0400

An excise tax on very high-cost health plans, which the Senate Finance Committee included in its health reform bill, represents a sound way to help pay for health reform. The excise tax finances nearly a quarter of the costs of the Finance Committee bill over the first ten years ($201 billion out of $829 billion) and makes a major contribution to the deficit reduction that the bill would achieve in later decades. It would help to slow the rate of health care cost …

TABOR Has Hampered Economic Growth and Reduced Quality of Life in Colorado

Mon, 19 Oct 2009 14:03:37 -0400

On October 12, the Maine Heritage Policy Center released a report that touted Colorado’s prosperity and claimed that its prosperity was the result of TABOR – ostensibly “refuting” the Center on Budget and Policy Priorities work showing that TABOR has been detrimental to Colorado. (Question 4, a TABOR nearly identical to Colorado’s, is on the ballot this November in Maine.) The Maine Heritage report is misleading in several respects, both on data …

Podcast: Low-Income Consumers and the Kerry-Boxer Climate Bill

Mon, 19 Oct 2009 10:53:59 -0400

Recent developments in climate change legislation are discussed by Chief Economist, Chad Stone. Duration: 3:32

Video: Nick Johnson Discusses State Budgets Problems on Fox News

Sat, 10 Oct 2009 15:04:18 -0400

Iowa is just one of many states with serious budget problems. Steve Brown reports on expected job loss and cuts in 2010 and 2011; commentary by Nick Johnson. Duration: 1:54

I-1033's Problematic Measure of Inflation

Thu, 15 Oct 2009 15:49:26 -0400

Each year, the cost of providing health care, education, roads and other services rises. As a result, state and local governments have to spend more to provide the same level of services. Washington’s Initiative 1033 would dictate the amount of these increases in spending based not on the actual cost of those services, but rather on a rigid “inflation plus population” formula. The measure of inflation that I-1033 would utilize is called the …

Case For a Social Security Cost-Of-Living Adjustment in 2010 Is Weak

Wed, 14 Oct 2009 11:53:19 -0400

Under current law, there will be no cost-of-living adjustment (COLA) in Social Security in 2010 — the first time that has happened since automatic cost-of-living adjustments began in 1975. Several bills before Congress would grant a special increase in Social Security payments for 2010. The inflation data, however, do not support an increase: overall consumer prices have fallen significantly in the past year and are not expected to return to their earlier peak until …

Finance Committee Makes Flawed Employer Requirement in Health Reform Bill Still More Problematic

Wed, 16 Sep 2009 15:25:55 -0400

The health reform bill that the Senate Finance Committee approved this week, while a major step forward as a whole, contains a requirement that could inhibit the hiring of individuals from low-income families and would place cumbersome burdens on employers. The provision would require employers who do not offer health coverage to pay substantial amounts — apparently up to $4,000 per worker or more — for low- and moderate-income individuals employed at least …

Senate Finance Committee Health Reform Bill Is Fiscally Responsible

Wed, 16 Sep 2009 15:41:26 -0400

A fundamental principle of the bill that the Senate Finance Committee approved today is that it is budget neutral — that is, its costs are fully offset. It pays for the costs of expanding health coverage to the uninsured by redirecting spending and tax subsidies from less productive uses elsewhere in the health sector. Several of the offsets are likely to help slow the rate of growth of health care costs over time. For example, the bill would impose an excise tax on …

What Level of Coverage Will Health Reform Likely Provide? The Basics of Actuarial Value

Tue, 13 Oct 2009 15:25:09 -0400

Each of the major health reform proposals Congress is considering sets standards for the coverage that the insurance plans offered through new health insurance exchanges would provide. To measure whether an insurance plan meets these standards, the bills rely on the use of “actuarial value.” This analysis explains the concept of actuarial value, its strengths and limitations, and how the major health reform proposals would use it. The main observations and …

Finance Committee Health Reform Bill Makes Improvements, But Still Falls Short of What Is Needed for Many People to Afford Health Care

Tue, 13 Oct 2009 15:38:12 -0400

The health reform bill that the Senate Finance Committee approved today includes significant improvements, compared to the original chairman’s mark, in making health care coverage affordable to low- and moderate-income households. It could, however, still leave many such households facing fairly steep insurance premiums and cost-sharing charges that they would have difficulty affording. The bill provides more limited assistance to people purchasing coverage in …

Statement: Robert Greenstein, Executive Director, on the Senate Finance Committee's Health Reform Plan

Tue, 13 Oct 2009 15:49:11 -0400

The Senate Finance Committee’s approval of an ambitious health reform plan marks a major step toward enactment of legislation to extend health care to tens of millions of people who lack it, strengthen insurance protections for millions more who are underinsured or face exorbitant charges, and begin to address the nation’s most serious fiscal threat — the relentless rise in health care costs. The Congressional Budget Office has reported that the bill would …

Video Highlights from the Conference “Progressives and the National Debt: Consequences and Solutions”

Thu, 08 Oct 2009 23:45:21 -0400

Click here to view the conference videos.

Podcast: TABOR's Harmful Effect on States

Thu, 08 Oct 2009 17:49:35 -0400

Robb Gray, the Center's state project coordinator, explains TABOR, a strict state spending restriction, and its harmful effect on states. Duration: 4:47

Podcast: The Safety Net's Response to the Recession

Thu, 08 Oct 2009 17:51:05 -0400

Director of the Center’s Welfare Reform and Income Support Division, Dr. LaDonna Pavetti, testifies on the safety net's response to the recession before the U.S. House of Representative's Ways and Means Subcommittee on Income Security and Family. Duration: 10:55

Testimony: LaDonna Pavetti, Director of Welfare Reform and Income Support, on the Safety Net's Response to the Recession

Thu, 08 Oct 2009 09:56:00 -0400

Thank you for the opportunity to testify today. My testimony will focus on four points: With recent Census data showing increases in poverty and declines in incomes even before Americans began experiencing the worst effects of the recession — and with further deterioration expected in both areas — policymakers face a serious challenge in helping low-income populations cope with the downturn. The recovery act passed in February has kept this serious recession from being …

Fact Sheet: TABOR Will Not Improve Maine's Business Climate

Wed, 07 Oct 2009 14:08:52 -0400

Colorado, the only state with a TABOR, has an economy that is stronger than Maine’s. However, that has nothing to do with TABOR. The strength of Colorado’s economy is largely a legacy of a post World War II public investment boom by the military and federal government. The federal investment left Colorado with a strong infrastructure of high-tech firms and researchers, a young, highly educated workforce, and public universities with well-respected science and technology programs. …

Podcast: Discussing the September Unemployment Report and What It Means For the Economy

Fri, 02 Oct 2009 16:36:50 -0400

The jobs report for September is discussed by Chief Economist, Chad Stone.

Statement: Chad Stone, Chief Economist, on the September Employment Report

Fri, 02 Oct 2009 11:49:22 -0400

Today’s jobs report shows that employers will need stronger evidence of a reviving economy before they will start adding workers to their payrolls. Employers shed jobs for the 21st straight month in September (see graph) and the unemployment rate edged up to 9.8 percent. Forecasters expect the preliminary report on gross domestic product later this month to show that the economy began growing in the third quarter, indicating that, technically, the recession …

Coalition Makes Flawed Arguments Against Proposal to Help Finance Health Reform by Maintaining Current Value of Itemized Deductions for Wealthy Households

Thu, 01 Oct 2009 12:45:08 -0400

A coalition consisting of several trade associations for foundations and some nonprofit organizations along with a number of large charities has raised objections to a proposal that would help finance improved health coverage for low- and moderate-income people by maintaining the value of itemized deductions for wealthy Americans at its current level. Under current law, the value of those deductions is scheduled to rise after 2010 when the 2001 tax-rate reductions are slated …

CBPP's Updated Long-Term Fiscal Deficit and Debt Projections

Wed, 30 Sep 2009 08:53:57 -0400

For a number of years, the Center on Budget and Policy Priorities (CBPP) has projected the long-term path of federal spending, revenues, deficits, and debt if current policies remain unchanged. These projections have shown that deficits and debt will grow in coming decades to unprecedented levels that will not only compromise the federal government’s ability to address critical national priorities, but also pose a real threat to the U.S. economy and Americans’ standard of living.…

Podcast: The Deficit, Debt, and Interest

Tue, 22 Sep 2009 00:00:00 -0400

In this podcast, the federal government deficit, debt, and interest is explained by Director of Federal Fiscal Policy, Jim Horney. Duration: 5:45

“SEVRA” Housing Voucher Reform Bill Would Update and Streamline Program

Tue, 22 Sep 2009 00:00:00 -0400

The Section 8 Voucher Reform Act (SEVRA), which the House Financial Services Committee approved in July and the full House will likely consider this fall, contains a series of important, carefully crafted measures to strengthen the housing voucher program. Most significantly, it would help and encourage state and local housing agencies to assist more needy families within the available funds, an important improvement at a time of rising poverty and homelessness. In …

Maine's “Tabor II” Repeats Mistakes of Colorado, Endangers Public Services and Business Climate

Tue, 22 Sep 2009 00:00:00 -0400

Summary Maine’s 2009 ballot initiative, “An Act to Promote Tax Relief” (known as TABOR II), imposes tight restrictions on expenditures for the broad range of state and local services that help support Maine’s economy and quality of life. The spending growth permitted under TABOR does not allow for these services to continue at their current levels. Moreover, TABOR II is set to go into effect before the state is expected to recover from the …

Press Release: “TABOR II” Would Harm Maine's Economy, Businesses, and Families

Tue, 22 Sep 2009 00:00:00 -0400

Maine's efforts to improve its business climate and recover from the recession would be hindered if voters adopt the proposed Taxpayer Bill of Rights (TABOR) that is on the ballot in Maine this November, according to a new report from the Center on Budget and Policy Priorities. The measure, known as “TABOR II” because a similar proposal was rejected by Maine voters in 2006, would impose rigid limits on state spending, forcing cuts to education, roads and highways, …

Harsh Labor Market Conditions Justify Extending Unemployment Benefits in Hard-Hit States

Mon, 21 Sep 2009 00:00:00 -0400

The bill the House will consider this week to provide additional weeks of unemployment insurance benefits in states with the highest unemployment rates [1] is an appropriate response to the continuing harsh conditions in the labor market. By the end of September, more than 400,000 workers will have exhausted both their regular, state-funded unemployment benefits and their federal extended benefits without being able to find a job, according to estimates from the National …

House Health Reform Bill Would Strengthen Medicare

Mon, 21 Sep 2009 00:00:00 -0400

Summary The House health reform bill (H.R. 3200)[1] includes a number of significant changes to the Medicare program that would enhance benefits and improve the quality of care, as well as shore up the program’s finances. Much of the discussion of Medicare in the health reform debate has focused, however, on various proposals to secure savings in that program, and a number of seniors appear to believe that Medicare “cuts” made in health reform would make …

Tax Offsets in Baucus Health Plan Are Sound But Can Be Improved

Fri, 18 Sep 2009 00:00:00 -0400

The health reform proposal by Senate Finance Committee Chairman Max Baucus would place a 35-percent excise tax on the value of health plans in excess of $8,000 for singles and $21,000 for families, starting in 2013; these thresholds would be indexed for inflation in later years. The excise tax is a sound way to help pay for health reform, but it has some shortcomings that can and should be addressed. Policymakers should modify the proposal to avoid unfairly affecting …

Audio Clip: Robert Greenstein Discusses Poverty in America on The Diane Rehm Show

Mon, 14 Sep 2009 00:00:00 -0400

Subsidies in Baucus Health Reform Plan Would Fall Short of What Is Needed for Many People to Afford Health Care

Wed, 16 Sep 2009 00:00:00 -0400

The difficulty Congress is encountering in finding ways to finance health reform legislation is placing in jeopardy the adequacy of the legislation’s subsidies to help low- and moderate-income people afford health coverage and out-of-pocket costs. The plan unveiled today by Senate Finance Committee Chair Max Baucus, reflecting deliberations by a group of the Committee’s Senators, would provide more limited subsidies to help people purchase coverage than …

Statement: Robert Greenstein, Executive Director, on Chairman Baucus' Health Reform Plan

Wed, 16 Sep 2009 00:00:00 -0400

Senator Baucus’ plan is a major contribution to the health care debate, as it would extend coverage to tens of millions of uninsured Americans and improve insurance for millions of Americans who already have coverage — through reforms that deal with matters such as pre-existing conditions — and do so while fully offsetting the costs, and beginning to slow the growth of health care spending. The plan does suffer, however, from two key problems that …

Employer Requirement in Baucus Health Reform Plan Would Pose Larger Problems than Previously Recognized

Wed, 16 Sep 2009 00:00:00 -0400

With the release by Senator Max Baucus of his “Chairman’s Mark” on health care reform, which will form the basis for decisions on health legislation by the Senate Finance Committee next week, the details of the plan’s “free rider” requirement on employers have become clearer. The proposed measure would require employers who do not offer health coverage to pay substantial amounts for low- and moderate-income employees receiving subsidies to …

Baucus Health Reform Plan Is Fiscally Responsible

Wed, 16 Sep 2009 00:00:00 -0400

A fundamental principle of the “Chairman’s Mark” that Senate Finance Committee Chairman Baucus released today is that it is budget neutral — that is, its costs are fully offset. It pays for the costs of expanding health coverage to the uninsured by redirecting spending and tax subsidies from less productive uses elsewhere in the health sector. Several of the offsets are likely to help slow the rate of growth of health care costs over time. For …

Statement by Chad Stone, Chief Economist, on the Second-Quarter Economic Growth Report

Fri, 31 Jul 2009 00:00:00 -0400

Today’s report on second-quarter economic growth shows that the economy is no longer in free fall. It also provides evidence that the economic recovery legislation that the Administration and Congress enacted earlier this year is doing what it was reasonably expected to do. No mainstream economist believed that the recovery measures would produce an immediate turnaround in the economy, but they did expect them to slow the downward spiral and help generate a turnaround sooner than …

Audio: Robert Greenstein Discusses Poverty in America on The Diane Rehm Show

Mon, 14 Sep 2009 00:00:00 -0400

Podcast: The Budget Reconciliation Process

Tue, 15 Sep 2009 00:00:00 -0400

The budget reconciliation process in Congress is explained by Director of Federal Fiscal Policy, Jim Horney. Duration: 4:43

Ending Medicare Advantage Overpayments Would Strengthen Medicare

Mon, 14 Sep 2009 00:00:00 -0400

One of the key cost-saving provisions Congress is considering as part of health reform legislation would eliminate the large overpayments Medicare makes to the private “Medicare Advantage” health plans that serve some Medicare beneficiaries. While private plans ostensibly were brought into Medicare to reduce costs, they actually increase Medicare spending because it costs substantially more, on average, to cover a Medicare beneficiary through a private plan …

Funding Shortfalls Causing Cuts in Housing Vouchers

Mon, 14 Sep 2009 00:00:00 -0400

As a result of a shortfall in funding for the Housing Choice Voucher Program for calendar year 2009, an estimated 400 state and local housing agencies across the country will be forced to reduce or eliminate rental assistance for a significant number of the 500,000 low-income families they serve. While landlords may absorb some of the cuts through reduced rents, the burden will fall primarily on low-income families, often in the form of sharply increased rental costs. …

Video: Robert Greenstein Discusses Consumer Relief Provisions in Cap-and-Trade Bill on E&ETV

Mon, 14 Sep 2009 00:00:00 -0400

Poverty Rose, Median Income Declined, and Job-Based Health Insurance Continued to Weaken in 2008

Thu, 10 Sep 2009 00:00:00 -0400

Poverty increased, median household income fell, and the percentage of Americans with employer-based health coverage continued to decline in 2008, according to Census data for 2008 issued today. The figures reflect the initial effects of the recession. Median household income declined 3.6 percent in 2008 after adjusting for inflation, the largest single-year decline on record, and reached its lowest point since 1997. The poverty rate rose to 13.2 percent, its highest level …

Private Health Coverage Declined, Became Less Secure in 2008

Thu, 10 Sep 2009 00:00:00 -0400

The Census Bureau reported today that 46.3 million U.S. residents lacked health insurance in 2008, an increase of 632,000 over the previous year. [1] Nearly 6.6 million more people were uninsured in 2008 than in 2001, when the previous recession hit bottom. The proportion of the population without health insurance climbed to 15.4 percent in 2008, slightly above (but not statistically different from) the 15.3 percent rate in 2007 and considerably above the 14.1 percent …

Podcast: Examining the New 2008 Census Data on Poverty, Income, and Health Insurance Coverage

Thu, 10 Sep 2009 00:00:00 -0400

Robert Greenstein discusses today’s grim Census Bureau report that shows the nation lost substantial ground in 2008 on poverty, median income, and the number of people who are uninsured. Several aspects of the Census report are highlighted. Duration: 11:59

Statement: Greenstein on Census' 2008 Health Insurance and Poverty Data

Thu, 10 Sep 2009 00:00:00 -0400

Today’s grim Census Bureau report shows the nation lost substantial ground in 2008 on poverty, median income, and the number of people who are uninsured. Several aspects of the Census report stand out. The number of people living in poverty jumped by 2.6 million to 39.8 million — the highest since 1960. The poverty rate — the percentage of people living in poverty — also rose, to 13.2 percent, which is its highest level since 1997. Similarly, real …

Upcoming Medicare Change is an Opportunity to Enroll Eligible Low-Income Seniors in Food Stamps

Wed, 09 Sep 2009 00:00:00 -0400

The Medicare Part D Low-Income Drug Subsidy (LIS), Medicare Savings Programs (MSPs), and Food Stamps[1] can play important roles in improving the health and well-being of low-income seniors and people with disabilities. Together, these programs can provide several thousand dollars a year in benefits and can significantly increase a low-income Medicare beneficiary’s ability to make ends meet. Unfortunately, all three programs suffer from very low participation rates among …

Stimulus Keeping 6 Million Americans Out of Poverty in 2009, Estimates Show

Wed, 09 Sep 2009 00:00:00 -0400

Although meant chiefly to help the broad economy, the stimulus plan Congress enacted earlier this year (the American Recovery and Re-Investment Act of 2009, or ARRA) had the important secondary effect of significantly ameliorating the recession’s impact on poverty. This analysis, which comes one day before the Census Bureau will release updated poverty figures (for 2008), examines seven of the recovery act’s provisions — two improvements in unemployment insurance, three tax …

Top 1 Percent of Americans Reaped Two-Thirds of Income Gains in Last Economic Expansion

Wed, 09 Sep 2009 00:00:00 -0400

Two-thirds of the nation’s total income gains from 2002 to 2007 flowed to the top 1 percent of U.S. households, and that top 1 percent held a larger share of income in 2007 than at any time since 1928, according to an analysis of newly released IRS data by economists Thomas Piketty and Emmanuel Saez.[1] During those years, the Piketty-Saez data also show, the inflation-adjusted income of the top 1 percent of households grew more than ten times faster than the income of the bottom 90 …

Employer Requirement in Baucus Health Package Would Have Unintended Effect of Discouraging Hiring of Low-Income and Minority Workers

Tue, 08 Sep 2009 00:00:00 -0400

While an employer responsibility requirement is an essential component of health care reform, a proposal included in the new health reform package that Senator Max Baucus unveiled this weekend would have serious consequences, particularly for low-income and minority workers and women. Under the proposal, employers who do not offer health coverage would have to pay the full cost of the subsidies provided to employees who purchase coverage through the new health insurance exchange and qualify …

Podcast: Discussing the August Unemployment Report and What It Means For the Economy

Tue, 08 Sep 2009 00:00:00 -0400

The jobs report for August is discussed by chief economist Chad Stone. Duration: 2:54

House Health Reform Bill Would Help Ensure Affordable, Quality Coverage for Older Adults Aged 55-64

Tue, 08 Sep 2009 00:00:00 -0400

The House health reform bill (H.R. 3200)[1] would reduce the ranks of the uninsured by 37 million by 2019 as compared to under current law, the Congressional Budget Office says, meaning that 97 percent of the non-elderly population would have health insurance.[2] One particularly vulnerable subset of the uninsured, older adults aged 55-64, would especially benefit under the House bill. While individuals aged 55-64 are less likely to be uninsured than younger people, …

Statement: Chad Stone, Chief Economist, on the August Employment Report

Fri, 04 Sep 2009 00:00:00 -0400

Today’s employment report shows little evidence that the emerging economic recovery is reviving the job market. Although job losses continued to moderate in August, the percentage of Americans with a job reached its lowest level since 1984. Economic activity seems to be increasing, but employers remain reluctant to hire, and people who want to work remain discouraged about their prospects of finding a job. Improvements in the labor market typically lag behind a …

Banning Taxation of Online Hotel Reservations Is Unwarranted and Could Cost States and Localities Billions of Dollars

Wed, 02 Sep 2009 00:00:00 -0400

Summary A draft amendment to the Travel Promotion Act of 2009 (S. 1023), which the Senate plans to take up in early September, would ban state and local taxation of hotel room rentals when booked by a travel agent or through an online travel company (OTC) like Expedia or Priceline. In its current form the amendment would immediately deprive states and localities of more than $680 million in annual hotel tax receipts. It would also prevent them from collecting at least …

New OMB and CBO Reports Show Continuing Current Policies Would Produce Large Deficits

Thu, 27 Aug 2009 00:00:00 -0400

On August 25, both the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) released updated budget projections. Some observers, comparing OMB's estimate of the deficit over the next ten years under the President's proposed policies ($9.1 trillion) to CBO's “baseline” estimate of the deficit under current law ($7.1 trillion), jumped to the conclusion that the President proposes to increase the deficit dramatically. In fact, the opposite is …

Podcast: Understanding the New Budget Deficit Updates

Thu, 27 Aug 2009 00:00:00 -0400

The new budget deficit updates from CBO and OMB are explained by the Center’s Director of Federal Fiscal Policy, Jim Horney. Duration: 3:28

Video: James Horney Discusses New CBO and OMB Deficit Projections on Bloomberg TV

Tue, 25 Aug 2009 00:00:00 -0400

Statement: James R. Horney, Director of Federal Fiscal Policy, on the Deficit Reports by the Office of Management and Budget and the Congressional Budget Office

Tue, 25 Aug 2009 00:00:00 -0400

Today's budget reports provide no evidence that federal budget policies over the last year have failed or that a drastic new direction in short-term fiscal policy is needed. While they also provide little new information about the nation's longer-run budget path, the reports highlight the need for the President and Congress to begin taking steps now to ensure that deficits will fall to reasonable levels through 2019 and that they do not grow very rapidly in later …

Podcast: High-Income Surcharge Can Help Pay for Health Reform

Tue, 25 Aug 2009 00:00:00 -0400

Chuck Marr, director of federal tax policy, discusses the need for health reform and one option to help pay for it: a surcharge on high-income households under consideration by the House of Representatives. Duration: 4:43

Video: James Horney Discusses 2009 Deficits and 10-Year Deficit Projections on C-SPAN's Washington Journal

Mon, 24 Aug 2009 00:00:00 -0400

Duration: 30:55

Video: James Horney Discusses 2009 Deficits and 10-Year Deficit Projections on CSPAN's Washington Journal

Mon, 24 Aug 2009 00:00:00 -0400

Duration: 30:55

Five Keys to Understanding New 2009 Deficit Estimates

Fri, 21 Aug 2009 00:00:00 -0400

Next week, the President’s Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) will update their economic and budget projections for fiscal year 2009, which ends on September 30, and the next ten fiscal years.[1]Some analysts and pundits will try to use the new projections to support their arguments that the February stimulus package is (or is not) working, that Congress must (or must not) proceed with health care reform, and that any number of other …

Podcast: Correcting Myths About the Stimulus Bill

Mon, 17 Aug 2009 00:00:00 -0400

Director of Federal Fiscal Policy, Jim Horney, and Director of the State Fiscal Project, Nick Johnson, discuss their paper “Correcting Five Myths About the Stimulus Bill.” They explain how the stimulus legislation is providing a much-needed boost to the economy. Duration: 4:44

Low-Income Climate Consumer Relief: Funds Needed for State Administration

Tue, 11 Aug 2009 00:00:00 -0400

The House-passed climate legislation (H.R. 2454), which would place a cap on emissions of greenhouse gases to combat global warming, includes very important consumer relief provisions to help ensure that the legislation does not increase hardship by making poor families poorer or pushing more people into poverty.Under the House bill, 15 percent of the allowance value is dedicated to protecting low-income Americans from increased costs they will face for energy and energy-intensive goods …

Changing Climate Bill To Give More Allowances To Electric Utilities Would Likely Hurt, Not Help, Consumers

Tue, 11 Aug 2009 00:00:00 -0400

In a July 6 letter to Majority Leader Harry Reid, the Edison Electric Institute (EEI) called for an even larger allocation of free allowances to the electricity sector than the substantial share it would receive under the House climate bill, as well as a more protracted phase-out of these allowances.In advancing these requests, the EEI letter makes a number of dubious claims. The Senate should look skeptically at these claims as it drafts climate legislation and should resist …

Podcast: Discussing the July Employment Report and What it Means for the Economy

Mon, 10 Aug 2009 00:00:00 -0400

Chief Economist Chad Stone discusses the jobs report for July and a troubling jump in long-term unemployment.

Press Release: Facing Deficits, More States Considering Taxing Services

Mon, 10 Aug 2009 00:00:00 -0400

Broadening the sales tax base to encompass more services, a step that tax experts have long recommended to modernize state tax systems, is receiving renewed attention because of the state fiscal crisis, according to a major new report from the Center on Budget and Policy Priorities. The report provides state-specific information on what services states now tax, how much revenue they forgo by failing to tax selected services, and how much revenue they could …

Expanding Sales Taxation of Services: Options and Issues

Mon, 10 Aug 2009 00:00:00 -0400

Summary Sales of tangible goods dominate most states’ sales tax bases; only a few states impose their sales taxes on a broad array of services. Sales of “non-durable goods” like clothing and light bulbs and “durable goods” like cars and computers generate the vast majority of state sales tax receipts. According to the Federation of Tax Administrators, a majority of states apply their sales tax to less than one-third of 168 potentially-taxable …