Discretionary spending will be near historic lows as a percent of the economy in 2020 and 2021 even with the added funding that the new bipartisan budget agreement (the Bipartisan Budget Act of 2019), now awaiting the President’s signature, provides for those years. And even if the 2021 funding levels grow with inflation in later years, discretionary spending will fall to its lowest level on record as a share of the economy (in data going back to 1962) within a few years (see chart).
As the Senate begins allocating available resources among its appropriations subcommittees following enactment of the new bipartisan budget agreement, IRS enforcement warrants special attention given the major cut it’s faced over the past decade.
Most states provide costly, poorly targeted income tax breaks to seniors regardless of their income, reinforcing the unequal distribution of income and wealth that was driven in part by years of discrimination and other barriers for people of color.
The Trump Administration announced this week that it won’t let Utah receive the Affordable Care Act’s (ACA) enhanced federal funding for expanding Medicaid unless it makes Medicaid coverage available to not just poor but near-poor adults, as the ACA requires.
As part of a recent executive order that the Trump Administration claims would “improv[e] … transparency in American healthcare,” it’s seeking to increase the tax advantages for two products — health care sharing ministries and direct primary care arrangements — that don’t provide the same benefits and consumer protections as comprehensive health insurance.
The Trump Administration is rejecting Utah’s request to receive the Affordable Care Act’s (ACA) enhanced federal funding to provide Medicaid coverage for only part of the population of poor and near-poor adults that states can cover by expanding their Medicaid programs under the ACA.
The federal government is responsible for conducting a fair and accurate census every ten years, but that’s in jeopardy for 2020. Years of inadequate and delayed federal funding and the Trump Administration’s failed efforts to add an untested citizenship question to the form threaten to reduce participation. Therefore, states should take steps now to help ensure a full and accurate census count.
The Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) is the primary source of nutrition assistance for many low-income families and individuals. SNAP enables low-income households to spend more on food than their limited budgets would otherwise allow and makes it easier to put enough food on the table.
On Medicaid and Medicare’s 54th birthday, tens of millions of beneficiaries face direct harm from litigation seeking to overturn the Affordable Care Act (ACA) — which strengthened both programs and updated how they operate, transforming Medicaid’s eligibility rules and Medicare’s payment systems.
Today is the 54th anniversary of the enactment of Medicaid, a program that helps millions of families and individuals across the country, as our state-by-state fact sheets show.
Medicaid helps low-income seniors, children, people with disabilities, and families get needed health care. Medicaid coverage improves families’ financial security by protecting them from medical debt and helping them stay healthy for work. Medicaid coverage also has long-term health, educational, and financial benefits for children.
This week at CBPP, we focused on the federal budget and taxes, food assistance, health, Social Security, and the economy.
On the 29th anniversary of the landmark Americans with Disabilities Act, it’s worth noting that major pending tax legislation would improve the economic circumstances of millions of people with disabilities. Some 4 million working people with disabilities and more than 2 million children with functional limitations would benefit from the Working Families Tax Relief Act’s improvements to the Earned Income Tax Credit (EITC) and Child Tax Credit.
The federal tax code can affect racial disparities in both income and wealth and, while the current code narrows those disparities somewhat, the 2017 tax law marked a step in the wrong direction, our new report explains (see graphic). Certain types of federal tax reforms, however, would advance racial equity, the report shows.
Social Security is a critical source of income for African American people of all ages and has reduced economic disparities between African American and white families. That’s especially important given recent findings from an Urban Institute study that we commissioned, on African American economic security and the role of Social Security, which details the economic barriers that African American workers face.
SNAP’s “Broad-Based Categorical Eligibility” Supports Working Families and Those Saving for the Future
As a result of broad-based categorical eligibility, more than 40 states effectively use less restrictive income and asset tests in SNAP, which allows them to better support low-income working families, promote asset-building among those households, and improve state administration while lowering administrative costs. Nonetheless, the Trump Administration on July 23 issued a proposed regulation to essentially eliminate the policy through executive action.
Historical racism and continuing racial prejudice and discrimination have helped to shape factors that determine households’ tax liability, and changes in tax policy and administration can widen or narrow racial disparities.