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American Friends Service Committee Bread for the World Church of the Brethren The Episcopal Church Evangelical Lutheran Church in America Faithful Reform in Health Care Friends Committee on National Legislation Jewish Council for Public Affairs Mennonite Central Committee Washington Office NETWORK, A National Catholic Social Justice Lobby National Council of Churches National Council of Jewish Women Presbyterian Church (U.S.A.) Office of Public Witness Sisters of Mercy Institute Justice Team Union for Reform Judaism United Church of Christ The United Methodist Church - General Board of Church and Society
This webinar is sponsored by:
Sammie MoshenbergDirector of Washington OperationsNational council of Jewish Women
Indivar Dutta-GuptaPolicy AdvisorCenter on Budget and Policy Priorities
INSERT INDI’S PRESENTATION HERE
After the Supercommittee, What’s Next for
Advocates?Indivar Dutta-Gupta
Policy Advisor
Interreligious Working Group on Domestic Human Needs (DHN) Super Committee
Aftermath Webinar – November 29, 2011
cbpp.org04/12/23
Overview
After the Super Committee, What’s Next for Advocates?
04/12/23 7DHN Supercommittee Aftermath Webinar
FY 2010 Budget Mostly Defense and Popular Entitlements
Federal Budget 101
cbpp.org04/12/23 8DHN Supercommittee Aftermath Webinar
Safety Net Programs Compose “Other Entitlements”
Federal Budget 101
04/12/23 9DHN Supercommittee Aftermath Webinarcbpp.org
Tax Cuts, Wars Account for Nearly Half of Public Debt by 2019
Federal Budget 101
04/12/23 10DHN Supercommittee Aftermath Webinarcbpp.org
Federal Debt Unstable Under Current Policies
Federal Budget 101
04/12/23 11DHN Supercommittee Aftermath Webinarcbpp.org
Principles for Deficit Reduction
What Happened?
• Balance primary budget, stabilize debt/GDP within next decade
• Balanced approach: • spending cuts, revenue increases
• Should not increase poverty or inequality
• Should boost economy in short-run
04/12/23 12DHN Supercommittee Aftermath Webinarcbpp.org
1. Cuts discretionary spending by $917 billion over ten years (plus modest program integrity savings)
2. Bipartisan, bicameral Joint Select Committee (JSC) tasked with identifying an additional $1.5 trillion or more, failed to reach agreement by November 23.
3. $1.2 trillion, 9-year sequestration—triggered by JSC failure—begins January 2013.
4. Separately, Balanced Budget Amendment (BBA) to Constitution will be considered in Senate; BBA failed in House in November.
Deficit Reduction under Budget Control Act (BCA)
What Happened?
04/12/23 13DHN Supercommittee Aftermath Webinarcbpp.org
BCA Included Large Discretionary Budget Cuts
What Happened?
04/12/23 14DHN Supercommittee Aftermath Webinarcbpp.org
Discretionary Spending Headed Toward Modern Lows
What Happened?
04/12/23 15DHN Supercommittee Aftermath Webinarcbpp.org
Unbalanced Democratic Proposal Countered by Extreme Republican Proposal
What Happened?
04/12/23 16DHN Supercommittee Aftermath Webinar
• Democrats put sacred cow programs on table; final proposal tilted toward cuts
• Republicans offered modest revenues, but contingent on making 2001-2010 tax cuts permanent (including upper income)
• Essential that tax cuts were not made permanent
• Bad plans worse than sequestrationcbpp.org
Despite Supercommittee Failure, Debt Will Rise Less Quickly
What Does This Mean?
04/12/23 17DHN Supercommittee Aftermath Webinarcbpp.org
$1.2 trillion sequestration, or “across-the-board cuts,” due to Super Committee failure, but core domestic low-income entitlement programs exempt:
• Medicaid and Children’s Health Insurance Program• Supplemental Nutrition Assistance Program (formerly Food
Stamps)• Child Care Entitlements (mandatory) and Child Nutrition• Earned Income Tax Credits (EITC), Child Tax Credit (CTC), ACA
Premium Credits [but NOT cost-sharing subsidies]• Supplemental Security Income (SSI) and Temporary Assistance
to Needy Families (TANF)04/12/23 18
Early Success Protecting Core Entitlement Programs
What Does This Mean?
DHN Supercommittee Aftermath Webinarcbpp.org
Low-Income Programs at Risk Again
What’s Next?
• Policymakers have expressed desire to partially or fully shield defense spending from sequestration
04/12/23 19DHN Supercommittee Aftermath Webinarcbpp.org
Medicaid is Less Costly than Private Coverage
What’s Next?
04/12/23 20DHN Supercommittee Aftermath Webinarcbpp.or
g
Public Health Coverage Countering Reduced Private Coverage
What’s Next?
04/12/23 21DHN Supercommittee Aftermath Webinarcbpp.org
SNAP Has Responded to the Recession
What’s Next?
04/12/23 22DHN Supercommittee Aftermath Webinar
SNAP Is Projected to Shrink as a Share of GDP
What’s Next?
04/12/23 23DHN Supercommittee Aftermath Webinarcbpp.org
Safety Net is Working
What’s Next?
04/12/23 24DHN Supercommittee Aftermath Webinarcbpp.org
Low-Income Programs at Risk Again
What’s Next?
• Policymakers have expressed desire to partially or fully shield defense spending from sequestration
• Only additional revenues should be allowed to reduce defense cuts under sequestration
04/12/23 25DHN Supercommittee Aftermath Webinarcbpp.org
Income Gains Have Been Concentrated at the Top
What’s Next?
04/12/23 26DHN Supercommittee Aftermath Webinarcbpp.org
Policies for Deficit Reduction
What’s Next?
cbpp.org
• Let Bush tax cuts expire, or pay for extension for low and middle income
04/12/23 27DHN Supercommittee Aftermath Webinar
Letting Tax Cuts Expire Would Stabilize Debt Over Next Decade
What Next?
cbpp.org04/12/23 28DHN Supercommittee Aftermath Webinar
Policies for Deficit Reduction
What’s Next?
cbpp.org
• Let Bush tax cuts expire, or pay for extension for low and middle income
• Target inefficient tax subsidies
04/12/23 29DHN Supercommittee Aftermath Webinar
04/12/23 30
Spending Through Tax Code Should be Scrutinized
What Happened?
DHN Supercommittee Aftermath Webinarcbpp.org
Policies for Deficit Reduction
What’s Next?
cbpp.org
• Let Bush tax cuts expire, or pay for extension for low and middle income
• Target inefficient tax subsidies
• Control system-wide health cost growth
04/12/23 31DHN Supercommittee Aftermath Webinar
Long Run Fiscal Imbalance due Largely to Health Costs
What’s Next?
cbpp.org04/12/23 32DHN Supercommittee Aftermath Webinar
Policies for Deficit Reduction
What’s Next?
cbpp.org
• Let Bush tax cuts expire, or pay for extension for low and middle income
• Target inefficient tax subsidies
• Control system-wide health cost growth
• Extend UI benefits & payroll tax cut
04/12/23 33DHN Supercommittee Aftermath Webinar
Economy Needs Boost through at least 2012
What’s Next?
04/12/23 34DHN Supercommittee Aftermath Webinarcbpp.org
UI Has Been Critical during this Recession
What’s Next?
04/12/23 35DHN Supercommittee Aftermath Webinarcbpp.org
Temporary Payroll Tax Cut Should be Extended
What’s Next?
04/12/23 36DHN Supercommittee Aftermath Webinarcbpp.org
Fiscal Policies Collide at End of 2012
What’s Next?
04/12/23 37DHN Supercommittee Aftermath Webinar
• 2001-2010 tax cuts expire at end of 2012
• Debt ceiling my need to be raised by early 2013
• $1.2 trillion sequestration scheduled to begin in January 2013
cbpp.org
Overview
After the Super Committee, What’s Next for Advocates?
04/12/23 38DHN Supercommittee Aftermath Webinar
Resources
After the Super Committee, What’s Next for Advocates?
• Primer on the Federal Budget Process www.cbpp.org/policyBasics
• Timely analysis on budget debates www.offthechartsblog.org (blog)
www.cbpp.org (blog) @CenteronBudget (twitter)
• Analysis of state budget and tax debates wwww.statefiscal.org
04/12/23 39DHN Supercommittee Aftermath Webinarcbpp.org
Contact Info
After the Super Committee, What’s Next for Advocates?
cbpp.org
Indivar Dutta-GuptaPolicy AdvisorFederal Fiscal PolicyCenter on Budget and Policy Priorities820 First Street NE, Suite 510Washington, DC 20002202-325-8788www.cbpp.orgwww.offthechartsblog.orgdutta-gupta@cbpp.org
04/12/23 40DHN Supercommittee Aftermath Webinar
Rev. Dr. J. Herbert NelsonDirector, Office of Public WitnessPresbyterian Church USA
Faithful Budget Campaign
Civil Disobedience in the CapitolReligious Leaders, including Rev. Dr. Nelson, at left, pray for vulnerable people in the Capitol Rotunda prior to being arrested during the budget debate.
Take Action
Call your senators and representative.
US Capitol Switchboard: 202.224.3121
I appreciate those members of Congress and on the Supercommittee who stood firm in demanding a balanced package that included revenues and did note include harmful cuts to programs for poor and vulnerable populations.
Congress must now address the country’s deficits in a balanced and responsible way, recognizing that job creation is a necessary part of any sustainable effort to shrink the deficit.
Take ActionWrite a letter to the editor for your local paper. The lack of a deal from the Joint Select Committee
on Deficit Reduction (aka supercommittee) is a missed opportunity for members of Congress to come together and address the country’s high unemployment and long-term deficit situation.
I appreciate those members of Congress and on the Supercommittee who stood firm in demanding a balanced package that included revenues and did note include harmful cuts to programs for poor and vulnerable populations.
Already, some in Congress are working to change the sequester to exempt or mitigate the defense cuts, which would force low-income programs to take a larger hit. This would also reduce the incentive for all parties to compromise and produce a balanced package.
Rather than focusing on changing the trigger, Congress should prevent the trigger from occurring by passing legislation that addresses the country’s deficits in a balanced and responsible way, recognizing that job creation is a necessary part of any sustainable effort to shrink the deficit.
