2012 federal budget outlook
Download
1 / 15

2012 Federal Budget Outlook - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

2012 Federal Budget Outlook. NIHB January 24, 2012 Joan Huffer Center on Budget and Policy Priorities. Federal Debt Under Current Policies is Unsustainable. cbpp.org. Tax Cuts, Wars Account for Half of Public Debt by 2019.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' 2012 Federal Budget Outlook ' - jeri


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
2012 federal budget outlook
2012 Federal Budget Outlook

NIHB

January 24, 2012

Joan Huffer

Center on Budget and Policy Priorities

1


Federal Debt Under Current Policies is Unsustainable

cbpp.org

NOT FOR DISTRIBUTION



Ryan plan would get two thirds of cuts from programs for low and moderate income people
Ryan plan would get two-thirds of cuts from programs for low- and moderate-income people

Source: “The Path to Prosperity” FY2012 Budget Resolution


Deficit Reduction Under the Budget Control Act low- and moderate-income people

  • Cuts discretionary spending by $1 trillion over 10 years through caps on discretionary spending.

  • Set up bipartisan, bicameral Joint Select Committee to identify additional $1.5 trillion in savings. Failed to reach agreement.

  • $1.2 trillion in across-the-board cuts (sequestration) begins January 2013 unless Congress acts.

cbpp.org


Supercommittee Failure Triggers Sequestration low- and moderate-income people


Sequestration Means Deep Cuts Throughout Budget low- and moderate-income people



Core Low-Income Entitlement Programs Exempt from Sequestration

$1.2 trillion across-the-board spending cuts will not affect:

  • Medicaid and Children’s Health Insurance Program

  • Supplemental Nutrition Assistance Program (Food Stamps)

  • Child Care Entitlements (mandatory)

  • Child Nutrition

  • Earned Income Tax Credits (EITC), Child Tax Credit (CTC), ACA Premium Credits [but NOT cost-sharing subsidies]

  • Supplemental Security Income (SSI)

  • Temporary Assistance to Needy Families (TANF)


Short-term threats Sequestration

  • UI benefits, weeks could be cut back

  • Cuts to health care programs to pay for SGR

  • Shielding defense from sequestration without revenue savings could lead to:

    • Loss of exemption for some low-income programs

    • Increased cuts to NDD


Fiscal Policies Collide at End of 2012 Sequestration

  • 2001-2010 tax cuts expire at end of 2012

  • $1.2 trillion sequestration scheduled to begin in January 2013

  • Debt ceiling may need to be raised by early 2013

  • FY2013 Appropriations bills may or may not be completed


Principles for Sequestration

Deficit Reduction

  • Balance primary budget, stabilize debt to GDP.

  • Need a balanced approach: everything must be on the table

  • Should not increase poverty or inequality

  • Boost economy in short-run

cbpp.org




Helpful resources
Helpful Resources Increases

  • Office of Management & Budget (OMB)

    • www.whitehouse.gov/omb

  • U.S. Senate Budget Committee

    • http://budget.senate.gov

  • U.S. House Budget Committee

    • http://budget.house.gov

  • Congressional Budget Office (CBO)

    • www.cbo.gov

  • THOMAS – Library of Congress

    • http://thomas.loc.gov

  • Center on Budget and Policy Priorities

    • www.cbpp.org


ad