ERIC Number: ED395077
Record Type: Non-Journal
Publication Date: 1996-Feb-1
Reference Count: N/A
Assessing the Plans To Balance the Budget: What Are the Effects on Low-Income Programs?
Shapiro, Isaac; And Others
This analysis of how plans to balance the budget are likely to affect the public considers the latest Republican offer and the Democratic administration's offer of January 18, 1996, as well as pending action on the fiscal year 1996 appropriations bills. The analysis finds that the latest Republican offer, in conjunction with pending and enacted appropriations bills, would cut low-income discretionary programs (programs that are not entitlements) by 19%, in comparison with all other discretionary programs that would be cut by an average of 5% and all other non-defense programs, which would be cut an average of 10%. Discretionary programs for low-income people account for 12% of all discretionary funding, but would absorb 33% of all discretionary cuts. A similar imbalance marks proposals to restrain entitlement programs. Tax cuts in the Republican plan would be of little help for low- and moderate-income households, and the wealthiest 1% of taxpayers would actually gain. The total reduction proposed by the administration would be smaller, but would still exact disproportionate reductions from means-tested entitlements, although to a substantially smaller degree than that proposed by Republicans. Both budget proposals would increase income disparities that already exist. (Contains four figures and five tables.) (SLD)
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Center on Budget and Policy Priorities, Washington, DC.