Transcript Document
2012 U.S. Poverty Campaigns Overview of Broader Budget Issues Budget Issues Timeline August 2011 • Budget Control Act of 2011 mandates $1 trillion in cuts plus another $1.2 trillion to be outlined by bipartisan “Super Committee” Nov 6, 2012 • Election Day November 2011 • Super Committee fails to reach a deal so across the board cuts (sequestrati on) will take affect in 2013 Nov-Dec 2012 • Lame Duck session of Congress March 2012 • House passes the House Republican Budget (Ryan Budget Dec 31, 2012 • Bush tax cuts and ARRA tax provisions expire June-July 2012 • Full Senate and House Ag Cmte pass cuts to SNAP in their respective Farm Bills Jan 1, 2013 • Automatic “Sequestra tion” cuts begin 2 House Republican Budget Medicaid: Cut by $810 billion over ten years; converted to a lump sum “block grant” to states 14-27 million would lose coverage SNAP: Cut by $134 billion over ten years; converted to block grant 8-10 million would lose benefits Non-Defense Discretionary Programs (NDD): Funding cut by nearly $300 billion over ten years ACA: Repeals health reform, denying 32 million health coverage Taxes: Millionaires would get an additional $265,000 tax cut, while middle income families would see their taxes increase 3 Attacking SNAP (Food Stamps) SNAP serves over 46 million per month, half of them children Average benefit is $1.50 per meal per person 76 percent of SNAP households include a child, an elderly person, or a disabled person In 2010, SNAP lifted 4 million people out of poverty 4 Attacking SNAP (Food Stamps) Senate Farm Bill Cuts SNAP by $4.5 billion over ten years 500,000 people will see their SNAP benefits drop an average of $90 per month Gillibrand (D-NY) amendment to restore SNAP cuts was defeated Passed full Senate 64-35 House Farm Bill Cuts $16.5 billion from SNAP over ten years (includes Senate cuts) 2-3 million people will lose SNAP benefits 280,000 children will lose access to school meals House Ag Cmte passed it 31-15 Future of either bill unsure 5 The Bush Tax Cuts In December 2012, all of the Bush tax cuts from 2001 and 2003 will expire 38 percent of benefits went to the top 1 percent Tax cuts have cost nearly $2 trillion in revenue Senate to vote on President Obama’s plan to extend tax cuts for income up to $250,000 (including EITC and CTC) as soon as this week House to vote on plan to extend all the Bush tax cuts; excludes extending the EITC and CTC provisions we support 6 Sequestration Automatic across the board cuts beginning in January 2013 (mandated under BCA if Super Committee failed) Approximately 9 percent from both defense and non-defense programs (about $55 billion each in 2013) Some programs like Medicaid, SNAP, EITC, CTC, Social Security, and child nutrition are exempt from sequestration Members of Congress feeling a lot of pressure to undo the defense cuts 7 The “Fiscal Cliff” End of Bush tax cuts + sequestration = recession More a slope than cliff — full effects will not be felt for months Plenty of time for Congress to act Some of Bush tax cuts will be extended The fiscal cliff talk is more of a scare tactic to push Congress into enacting bad policy before January 8 RESULTS on Deficit Reduction RESULTS belongs to the SAVE for All Coalition Deficit reduction must protect low and moderate income Americans and not increasing poverty Oppose cuts to SNAP, Medicaid, EITC/CTC, and other programs that help lift and keep people out of poverty Oppose block granting Medicaid and SNAP Deficit reduction must include new revenue New revenue must comprise at least half of deficit reduction Allow the Bush tax cuts for the top 2 percent to expire Closing tax loopholes Deficit reduction must create jobs Investments in infrastructure, rebuilding schools, etc Deficit reduction must eliminate wasteful military spending 9 RESULTS/RESULTS Educational Fund 1730 Rhode Island Ave NW, Ste 400 Washington DC 20036 www.results.org RESULTS Economic Opportunity Campaign Contacts: Meredith Dodson, [email protected], (202) 782-7100, x116 Jos Linn, [email protected], (515) 288-3622 10