Demand a Fair Budget That Works for All

Congressional Republicans, doing the bidding of Tea Party fanatics, are holding the U.S. economy hostage to their demand to slash vital programs like Social Security and Medicare while continuing to give away billions in corporate welfare and tax subsidies to big business. They are threatening to vote as a bloc against raising the U.S. debt ceiling before the August 2 deadline, unless the Obama Administration and Democrats agree to trillions of dollars in cuts to these essential programs without touching corporate tax giveaways. At the same time, the jobs crisis is getting worse.

The media is reporting that President Obama has signaled he is willing to make cuts on this scale if Republicans will agree to make big corporations and the rich pay their fair share of taxes.  But the Republicans have drawn a line in the sand and declared they will never agree to tax hikes on wealthy corporations or individuals. 

So now we need to draw our own line in the sand. It is up to us to make sure that the President and Democrats in Congress know we have their backs—IF they defend the safety net that generations of Americans fought and died for, and IF they stand up against corporate greed and insist that Congress enact a fair budget in which ALL Americans pay their fair share. 

Our Message:

While protecting billions in tax breaks for the wealthiest corporations and individuals, Republicans have proposals on the table to take away food from infants, limit access to higher-education, significantly cut Medicaid and even dismantle Medicare. Making children, the elderly and poor people carry the budget burden on their backs while the richest continue to enjoy the lowest tax rates in generations is inherently unjust and will lead to an even weaker economy and nation. 

Some in Congress would jeopardize our economy by refusing any revenue increase and targeting trillions of dollars in cuts to essential health, nutrition, education, employment, housing, and other programs. Decisions are being made to craft a deficit reduction deal that will determine who gets to eat, who gets an education, and who gets health care for the next decade. Please tell the President and your Senators that our future depends on essential investments, and that the wealthiest among us can afford to pay their share. 

No! It is not necessary to give up the gains of the Great Society and the New Deal in order to balance the budget long term. For example, the People’s Budget proposed by the Congressional Progressive Caucus, which at 80 members is the largest organized caucus in Congress, would cut the budget deficit to zero by 2021, but would do so without cutting Social Security, Medicare and Medicaid. It would close the budget deficit by raising tax rates on the rich and giant corporations, while also curbing military spending and getting health care costs under control, partly by introducing a public option. The CPC Budget protects the middle class and promotes needed investments in education, health care, transit, energy, and the environment. 

In poll after poll, the public says that the rich and big corporations should pay more taxes, and that the government should protect Social Security and invest in jobs. The approach taken in the CPC Budget not only reflects what most people actually want, it’s also good economics. The middle of an unemployment crisis is the wrong time to cut the federal budget. Ever since the Great Depression, economists have known that the key to recovery from a deep economic slump like the one we are in now is for governments to stimulate demand. The best way to stimulate demand is to give people productive work that puts money in their pockets. 

But it has become fashionable for politicians to blame the middle class and public sector workers for the economic crisis brought about by the excesses of Wall Street. Politicians all over the country, even some Democrats, are trying to repeal or scale back collective bargaining rights, pensions and health care for public employees in order to balance budgets without raising taxes on the corporations and wealthy speculators who got us into this mess in the first place. Now they’re doing the same thing to the U.S. middle class. Ironically, the more the politicians succeed in this attack on the public sector, the weaker the economy will become. Reducing the ability of public workers and the American public to spend will further reduce demand, eliminating jobs and further slowing the economy. 

Here’s some more information about who would win and who would lose under the House Republican budget proposals:

The Ryan Budget approved by the House of Representatives would dismantle Medicare and create a new voucher system that would force millions of seniors to spend thousands each year on their health care.

The House proposal reduces the amount and number of Pell Grants that support middle class youth in college, and the proposal eliminates millions from education. 

Congress has proposed significant cuts to Medicaid that would take health care away from millions of poor families and children. 

Infants and Children would lose access to WIC, Head Start and Food Stamps under the House budget proposal. 

These cuts affect ALL hard-working Americans because cuts to Medicaid, Medicare, education and other social service programs would lead to the loss of millions of jobs – both in the private and public sectors. The cuts to Medicaid in the Ryan Budget could lead to a loss of 2.1 million jobs, most of which would be in the private sector. 

Corporations that benefit from tax loopholes that allow companies making billions to get away with paying NO federal taxes. In 2010 General Electric posted $14 billion in profits and paid NO federal taxes. 

Oil companies that will continue to get government subsidies while making BILLIONS in profits. Exxon-Mobil reported almost $1 billion in pre-tax profits over the past two years, but only paid $39 million in taxes – only 0.4 percent – because of the tax subsidies. 

Corporate jet owners who have a loophole that does not exist for commercial jets. Changing this loophole could generate at least $2 billion in revenue for the United States. 

Millionaires and billionaires who continue to have the LOWEST tax rates since the 1950’s. 

In 2001 there was a surplus of $128 billion. Since that time the deficit has increased to $1.4 trillion because: 

Revenues have decreased by 18 percent. 

Defense spending (EXCLUDING the cost of the wars) increased by 47 percent. Including the cost of the wars Defense spending is up by 80 percent. 

Spending on mandatory programs (such as Medicare and Social Security) is up by 32 percent. 

Non-defense discretionary spending has remained flat. 

The big corporations and rich people who got us into this financial mess have continued to enjoy subsidies, loopholes and low tax rates.