Federal Budget & Tax

JUST RELEASED: The Federal Budget Process

The latest budget agreement, if adopted by Congress, is bad news. It will represent one of the most radical budget plans that lawmakers have adopted since they created the modern budget process in 1974 by doubling cuts in non-defense discretionary programs over the coming decade, such as education, job training, scientific research, and child care, among many other important areas. It imposes most of its cuts on programs for low- and modest-income Americans, even though such programs constitute less than 1/4 of federal spending. The plan would cause tens of millions of people to become uninsured or underinsured, cut support for working-poor families, and make it harder for millions of modest-income students to afford college. In short, it would weaken long-term economic growth by slashing funding for areas like education, research, and infrastructure that help promote growth.

Learn more from the Center on Budget and Policy Priorities with their Policy Basics piece and a statement from Robert Greenstein, President of CBPP.

IN FOCUS: Three-Month Time Limit for SNAP

The Center on Budget & Policy Priorities reports that: “Roughly 1 million of the nation’s poorest people will be cut off SNAP (formerly known as the Food Stamp Program) over the course of 2016, due to the return in many areas of a three-month limit on SNAP benefits for unemployed adults aged 18-50 who aren’t disabled or raising minor children.  These individuals will lose their food assistance benefits after three months regardless of how hard they are looking for work.”  Check out more here.

ABOUT OUR FEDERAL BUDGET & TAX WORK

State level decisions are often impacted by what is going on at the federal level.  Particularly important in the current federal debate with significant implications for North Carolina are discussions of deficit reduction and tax policy, most specifically the Bush Tax Breaks. 

Federal Tax Policy – The country, like the state, is in need of revenue reform that can improve the alignment of the tax system with ability to pay and ensure that investments can be made to support the economic recovery and a strong economy moving forward.  Key to progressive federal revenue reform will be eliminating the Bush-era tax cuts for those earning more than $250,000. The Budget and Tax Center analyzes the federal tax system, its progressivity and adequacy, and how it impacts North Carolinians.

Deficit Reduction – Deficit reduction has been a significant part of the public debate in recent years.  The Budget and Tax Center analyzes deficit reduction proposals with an eye to their impact on North Carolina and communicates with and informs partners and North Carolinians about the importance of these federal discussions to their everyday lives.