Tax & Budget

May 09, 2008

A Mother's Day Wish List

by Helen Blank, Director of Leadership and Public Policy
National Women’s Law Center

As we celebrate the mothers in our own lives this Mother's Day, we should also remember that many parents are denied the best gift of all — knowing that their children are in high-quality child care.

This care gives parents the support and peace of mind they need to be productive at work, and helps children learn and develop skills they need to succeed in school and in life. However, if current federal funding trends continue, more and more children will lose child care assistance, and will not be able to participate in Head Start.

In honor of Mother's Day, please write a Letter to the Editor of your local newspaper, reminding our nation’s leaders to make child care and Head Start national funding priorities — and please also send an eCard to your family, friends, and co-workers inviting them to do the same.

And check out MomsRising’s Mother’s Day eCard

When America supports child care, we encourage children, families, and our nation to reach their full potential.

May 06, 2008

Children and Families Need the Starting Early Starting Right Act

by Helen Blank, Director of Leadership and Public Policy
National Women’s Law Center

Senator Robert Casey (D-PA) wants to give an important gift to America’s mothers as Mother’s Day approaches. In these tough economic times, recognizing that affordable high-quality child care is a basic that helps children develop the skills they need to be ready for school and helps families get ahead by giving parents the peace of mind they need to be productive at work, he introduced the Starting Early Starting Right Act.

The bill is mindful of that fact that high-quality child care is often unavailable to low-income children and their families. Senator Casey’s bill addresses this problem by increasing funding so states can provide more high-quality child care opportunities for low-income families and help the hundreds of thousands of children across the country on waiting lists for child care assistance.

This is a bill that also understands that families with our youngest children—infants and toddlers—need the most attention given the difficulties with finding care as well as the clear research about the importance of  children’s earliest years. The Starting Early Starting Right Act supports infants and toddlers by requiring states to set aside 30 percent of the bill’s total funding for this underserved group of children.

Child care develops America’s potential by helping children, families, and communities prosper. However, even though child care is immensely important, federal funding for child care assistance has been virtually flat-funded for seven years. Senator Casey’s bill, which helps our nation stay competitive by encouraging children to do well in school and supporting working parents, is right on target.

For more information about Senator Casey’s Starting Early Starting Right Act please see the National Women’s Law Center’s summary at http://www.nwlc.org/pdf/CaseyBillSummary.pdf.

April 25, 2008

Food Stamps or Tax Breaks for Racehorses? We're Betting on the Ponies

by Joan Entmacher, Vice President for Family Economic Security
and Kristina Gupta, Policy Fellow

We at the National Women’s Law Center have blogged about the Farm Bill before, but for those of you who may not know, the Farm Bill is a massive piece of legislation which includes a variety of programs – including agricultural subsidies, conservation, and nutrition programs. It comes up for reauthorization every five years, and negotiations between the House and Senate – and the White House – have been going on for months.

Reauthorization of the Farm Bill would mean an increase in funding for nutrition programs including food stamps and emergency food assistance. These increases are critically needed at a time when food prices are going through the roof, and are especially important for women – nearly 70 percent of adult food stamp recipients are women.

Yet, action on these critical nutrition improvements is stalled as some members of Congress continue to insist on dubious tax cuts and subsidies for wealthy farmers and agribusinesses.  One that borders on the ridiculous is the tax break for racehorse owners being promoted by Senate Minority Leader Mitch McConnell (R-KY) (racehorse owners would be able to deduct the cost of their racehorse purchases over three years instead of seven). The congressional Joint Committee on Taxation estimates that this provision will cost $61 million in 2009 and $489 million between 2008 and 2017. Just to provide some comparisons: In 2009, the proposed tax break for racehorses could pay for food stamp benefits for an additional 49,000 Americans, Pell grants for an additional 23,000 students, or childcare subsidies for an additional 10,000 children.

Continue reading "Food Stamps or Tax Breaks for Racehorses? We're Betting on the Ponies" »

April 23, 2008

Bush Treasury Department Official Tells the Truth about Tax Cuts

by Chad Newcomb, Senior Policy Analyst
National Women’s Law Center

An official from George H. W. Bush’s Treasury Department, that is. Here’s Bruce Bartlett, from today’s LA Times

The truth is that President [George W.] Bush's tax cuts didn't do much good for the economy; they were mostly giveaways to GOP political constituencies and were little different conceptually from pork-barrel spending. Although there were some good elements to the tax cuts, such as the reduction in marginal tax rates, they were fatally undermined by their temporary nature.

The fact is that the massive tax increase Republicans claim the Democrats are proposing is entirely the result of the GOP's penny-wise and pound-foolish policies. Rather than expend the effort to make their tax cuts permanent in the first place, they attached expiration dates to every major provision. Most will expire automatically at the end of 2010. The alleged tax increase that would result is simply a consequence of the tax system returning to what it was before 2001, when the first tax cuts were implemented.

But this isn't even the worst of the Republican dishonesty. That goes to projections from the Congressional Budget Office showing a sharp reduction in budget deficits after 2010. But these lower deficits result largely from the expiration of the tax cuts and the higher revenues that would result. Thus, Republicans are trying to have their cake and eat it too. They get to blame Democrats for advocating higher taxes while implicitly using those higher taxes to make future deficits smaller.

Continue reading "Bush Treasury Department Official Tells the Truth about Tax Cuts" »

April 21, 2008

The Hot Fudge Sundae Diet Doesn't Work - and Cutting Taxes on Capital Gains Doesn't Raise Revenue

by Joan Entmacher, Vice President for Family Economic Security
National Women’s Law Center

There’s been a lot of discussion about the performance of the moderators at last week’s Democratic presidential debate. But not much attention has been paid to a misleading question on an important tax and budget issue posed by Charles Gibson of ABC News.

Gibson asserted that when the tax rate on capital gains was dropped the government took in more revenue, and that 100 million people who own stock would be affected if the rate was increased. Then he asked, “So why raise it?” Both points are seriously misleading, as the Center on Budget and Policy Priorities explains.

Cutting tax rates on capital gains income loses revenue over the long term. Extending the capital gains tax cut enacted in 2003, which lowered the tax rate on capital gains income from an already low maximum rate of 20 percent to 15 percent, would cost $100 billion over the next decade. The estimate comes from the nonpartisan Congressional Budget Office and Joint Committee on Taxation, and President Bush’s Office of Management and Budget included a similar estimate in the President’s budget. Protecting tax breaks for capital gains income means $100 billion less for investments in our families and communities.

Continue reading "The Hot Fudge Sundae Diet Doesn't Work - and Cutting Taxes on Capital Gains Doesn't Raise Revenue" »

April 15, 2008

What the Public Is Thinking About Taxes

by Joan Entmacher, Vice President for Family Economic Security
National Women’s Law Center

The results of a recent Gallup poll on taxes show, once again, that the biggest complaint Americans have about the federal income tax isn’t what they pay in taxes, but that the wealthy and corporations aren’t paying their fair share. 

Six out of ten Americans regard the income tax they have to pay as “fair” (and only half thought the amount they have to pay is “too much”), even though the poll was conducted just one week before the tax filing deadline. But 73 percent said corporations paid too little, and 63 percent said the wealthy paid too little. 

The public has it right. Just this week came news of the finding that large corporations are half as likely to be audited by the Internal Revenue Service as they were 20 years ago. The housing bill passed by the Senate includes a lot of new corporate tax breaks that won’t do anything to help homeowners facing foreclosure.  An increase in Food Stamps is still stalled, in part because of the Administration’s determination to protect corporate tax loopholes.  The very highest income Americans -- the "fortunate 400" -- with an average income of $214 million in just one year, paid taxes at an average tax rate of just 18 percent. Yet President Bush and some members of Congress are calling again to extend tax breaks for the very wealthiest.

The needs of women and their families are being sacrificed to pay for tax breaks for the powerful few.  Just think what we could do to advance women’s priorities if corporations and the very wealthy paid their fair share of taxes!

April 01, 2008

The Media Gets It: Downturn Hitting Poor Women & Families Hard

by Joan Entmacher, Vice President for Family Economic Security
and Kristina Gupta, Policy Fellow 
National Women’s Law Center

We observed a few days ago that the poor finally made it to page one. This week, the media continues to call attention to the ways the downturn is affecting economically vulnerable people, mostly women and children – just in time for the returning Congress to do something about it.

The Washington Post ran two excellent articles about the effects of the economic downturn. The first article talks about how states are dealing with budget shortfalls (unlike the federal government, almost all states must balance their budgets each year). Mostly, states are slashing services instead of looking for ways to raise revenue. The story highlights the effects of these cuts on the most vulnerable, including poor women in Cook County, Illinois, who no longer have access to free mammograms, and low-income Californians with AIDS who are losing access to life-saving retroviral treatments. The second article talks about the impact of rising energy prices on low-income people and the struggling middle-class. According to the article, more and more families are unable to pay their utility bills and are turning to private charities and the federal Low Income Home Energy Assistance Program (LIHEAP) for aid. But neither private charities nor the underfunded federal program are able to meet current needs.

Continue reading "The Media Gets It: Downturn Hitting Poor Women & Families Hard" »

March 28, 2008

Need Money? The IRS Can Help…Really.

by Kristina Gupta, Policy Fellow
National Women’s Law Center

Hopefully, everyone has heard by now that Congress has passed and President Bush has signed into law an economic stimulus bill that will provide “stimulus payments” to tax filers around the country. Eligible individuals can receive $300 to $600 (eligible married couples can receive $600 to $1,200). In addition, families can receive an additional $300 per qualifying child.

Now, you may ask, how do I get this money? You must file a tax return, and then the IRS will automatically calculate your stimulus payment and send it out to you. If you normally file a tax return, simply do so before April 15 (or get an extension). If you are one of more than 20 million people who aren’t required to file tax returns but are eligible to receive economic stimulus payments – including low-income retirees, disabled veterans, and low-wage earners with at least $3,000 in qualifying income – you have to file a return in order to receive your payment.

No need to worry. If you are filing a tax return just to receive a stimulus payment, the form is simple, and the deadline isn’t until Oct. 15, 2008. And there is lots of help available. On Saturday, March 29, the IRS and its partners will open hundreds of locations around the country to help people who are filing a return solely to receive a stimulus payment. Information about this so-called “Super Saturday,” including a list of the locations that will be open, is available on the IRS website. For more information about eligibility for the stimulus payment and how to claim your payment, visit NWLC’s Economic Stimulus Payments webpage.

March 24, 2008

Weekly Round-Up

by Mary Robbins, Program Assistant
National Women’s Law Center

Meghan Rapp at RH Reality Check discusses the abstinence-only funding flowing into Alabama, and the toll on women’s health.

After the Federal Reserve helped save Bear Stearns from bankruptcy last week, women’s advocates are pushing for similar help for women facing dire economic situations.

The New Hampshire state Senate rejected a bill that would have required minors to meet with a counselor prior to receiving an abortion to discuss the options in pregnancy, including adoption, abortion and keeping the baby.

The National Library of Medicine and the Office of Research on Women’s Health have launched new online resources on women’s health (via Our Bodies Our Blog).

Conde Nast Portfolio takes an in-depth look at sexism in the workplace in its April 2008 issue.

A study in Australia surveyed 13 large Australian companies to discover why there are so few women at senior levels.

March 21, 2008

The Poor Make It to Page One

by Joan Entmacher, Vice President for Family Economic Security
National Women’s Law Center

Poverty and the poor usually don’t get a lot of attention from the media. But today’s Washington Post tells it like it is on page one: Inflation Hits the Poor Hardest.   

For a family that has barely enough income to make ends meet, any increase in prices is more of a burden than for a family that has more than enough income to cover the basics. But there’s more to the story than that, as the article explains. Prices for basic necessities have risen far more steeply than other items over the past two years. Bread and cereals, up 9.7 percent. Dairy, up 14.8 percent. Fruits and vegetables, up 10.3 percent. Fuel oil, up 31.2 percent. Gasoline, up 17.3 percent. 

So, while the squeeze on the middle-class is real, and bad, the squeeze on the poor is even worse. Thanks for reporting it, Washington Post.

Now, for the follow-up. There are lots more stories out there about what’s been happening to investments in programs to help struggling families under the Bush budget, and how additional stimulus measures could help those most in need.

How about a series?