Perverse Priorities in the Tax Extenders Package
by Matt Lewis, 12/8/2006
Though popular, the tax extenders package that seems headed for approval today is not without its perverse aspects.
For instance, a funding patch for the State Children's Health Insurance Program (SCHIP) was stripped out of the package, at the same time that funding for Health Savings Accounts (HSA) was added. SCHIP benefits low-income children- HSAs the wealthy and privileged.
For more, see this statement by Robert Greenstein of the Center on Budget and Policy Priorites.
It has been known all year that without additional SCHIP funding, 17 states would face SCHIP
shortfalls in 2007. The Administration included a proposal in its budget to address these shortfalls.
Various bills to resolve the problem were introduced in Congress. But when decision time came,
Congressional leaders declined to act. Coverage for up to 600,000 low-income children will be at risk
as a result.
