Blog Posts and Analysis / Revenue & Spending

Two New Tax Cuts Benefit the Wealthy

As a fitting kick-start to a year in which President Bush is expected to push hard to make his expensive and unbalanced tax cuts permanent, two new tax cuts went into effect that almost exclusively benefit high-income households. These tax cuts, referred to as "PEP" and "Pease," were enacted in 2001 but did not go into effect until 2006--an underhanded but politically advantageous move that kept the total cost of the 2001 tax cut package within set budget limitations.

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Congress Has Yet to Pass Budget, Tax Cuts

The budget and tax reconciliation measures laid out in Congress's April 2005 budget resolution took up a good deal of lawmakers' time and energy throughout last fall, and continue to linger unfinished, even as the release of the president's Fiscal Year 2007 budget rapidly approaches. The House of Representatives, in fact, is scheduled to vote on the final budget bill one week before the president is scheduled to release his budget on Feb. 6.

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Year in Review: More Poor Budgetary Stewardship

When it came to tax and budget issues, 2005 was an overwhelmingly disappointing year in the nation's capital. Facing long-term challenges and numerous obstacles, both President Bush and the U.S. Congress seemed to suffer from a severe case of disconnectedness from the fiscal and economic realities that should have moved them toward more rational, healthy tax and budget policies.

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Tax Cuts: The Final Melee

Continuing its trend of bucking compassion and fiscal responsibility in lieu of tax cuts for the wealthy, the House of Representatives voted last week to pass the $56 billion reconciliation tax bill. This vote, which came on the heels of the vote to save money by slashing mandatory spending, culminated what seemed to be a month of illogical, hypocritical voting.

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Budget Cuts: The Final Showdown

The Senate's return to Washington this week means that conferees have begun final negotiations on the budget reconciliation bill. The two versions of this bill, which aims to cut entitlement spending over five years, contain vast differences, particularly with respect to cuts to Medicaid, student loans, and food stamps.

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Congress Staggers Toward End-of-Session Finish Line

To the amazement of many and the pleasure of none, Congress is still in Washington this week trying to wrap up the 2005 legislative session. Only two must-pass bills remain incomplete (the Labor/Health & Human Services and Defense appropriations bills), yet both the House and Senate seem preoccupied with other matters--namely, the spending and tax reconciliation bills, immigration reform, pension overhaul, and reauthorization of the USA Patriot Act, which some consider another must-pass (at least temporarily as it expires at the end of this year).

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TABOR: A Losing Proposition for Colorado

Earlier this month, voters in Colorado demonstrated their dissatisfaction with the state's constitutional spending limit law — otherwise known as TABOR--by voting in favor of suspending its spending limits for five years. TABOR, the "taxpayer's bill of rights," had contributed to a significant decline in the state's public services since its enactment in 1992. Unfortunately, this victory in Colorado has come after years of disastrous tax and spending practices eroded state services, harming Colorado's education system, health care programs, and transportation infrastructure.

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