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Posts Tagged ‘fiscal cliff’

Piggy Bank with back to school messageIn this installment of our ongoing Budget 101 blog series, we’re exploring what was in the “fiscal cliff” package passed by Congress over the New Year’s holiday. Late last night, the House of Representatives passed the Senate bill to pull us back from the fiscal cliff — the combination of tax and spending changes that were set to go into effect today and could have sent the U.S. economy back into a recession. But the deal, which President Obama is expected to sign, dealt only with the tax changes and merely delayed the spending cuts known as sequestration.

AAUW commends lawmakers from both parties for coming together to reach a true compromise (look up how your senators and representative voted). Like any compromise, the deal is far from perfect, but it includes several AAUW-supported provisions that will help women and their families, such as

  • Returning to the Clinton-era tax rates for high-income earners while continuing the current rates for individuals earning less than $400,000 and families earning less than $450,000
  • Extending the American Opportunity Tax Credit, an AAUW-supported $2,500 tax credit to help college students and their families pay for tuition and related expenses
  • Ending the payroll tax holiday and returning to the previous rate of withholding, therefore protecting Social Security’s long-term solvency
  • Extending federal unemployment insurance for another year, benefiting those unemployed for longer than 26 weeks
  • Delaying the automatic, across-the-board spending cuts for two months, giving Congress more time to find a way to protect key programs like K–12 funding, Pell Grants, and family planning from sequestration

Although the automatic spending cuts have been delayed, they are still dangerous. In the next two months, Congress will need to find a solution to avoid deep cuts to important investments such as education, funding for civil rights enforcement, women’s health programs, and workforce training programs.

obama fiscal cliffThe 113th Congress, which begins on January 3, is in for a bumpy next few months. The sequestration delay is projected to end at roughly the same time the United States hits its newly set debt limit (early March), setting the scene for a pitched political fight. This will likely be followed by another battle when the current appropriations bill that is funding the government expires in late March.

AAUW is a nonpartisan organization, but we’re also multi-partisan, representing a variety of political affiliations and viewpoints. Despite our differences, AAUW members come together to get things done and serve our communities. Congress should do the same. AAUW members will continue to press Congress to support budget policies that further the principles of fairness and fiscal responsibility and protect women and their families.

Make your voice heard! Sign up for AAUW’s Action Network and speak up for women and families.

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Piggy Bank with back to school messageWelcome back to the Budget 101 blog series, where we explore the federal budget and how it affects Americans’ lives. In this installment, we’ll look into the possible cuts to important domestic programs that would occur if we go over the “fiscal cliff.”

AAUW believes that any agreement made in Washington must take a balanced approach and not include further cuts to critical nondefense discretionary (NDD) programs that expand educational and workforce training opportunities, defend civil rights, protect women’s health, and promote gender diversity. NDD programs have already been cut to reduce the deficit, and AAUW strongly believes future cuts should come from other budget areas, such as Pentagon spending. An analysis by a nonpartisan organization found that there is no room to make additional NDD cuts “without threatening the government’s ability to provide crucial benefits and services and perform core public functions.”

If we go over the fiscal cliff and the dramatic cuts known as “sequestration” happen, women and girls will feel the impact. For example

  • K–12 funding would be reduced, meaning fewer teachers, larger class sizes, and reduced resources for school mental health counseling, anti-bullying programs, and other safety programs.
  • Higher education programs would be cut, affecting Pell Grants and student aid opportunities and limiting students’ ability to access postsecondary education. Although Pell Grants are exempt from the first round of sequestration and would therefore not face automatic cuts, the program actually needs additional funding just to continue serving current participants.
  • Women seeking workforce training would be hurt. Department of Labor programs fund the Women’s Bureau, One-Stop Career Centers, and other efforts that provide grants to help unemployed workers retrain for their industry or enter nontraditional fields. Cutting these programs means workers won’t get that training, and our economy will continue to suffer.
  • Women and girls’ civil rights protections would be in danger. The sequester would automatically cut funding for federal civil rights agencies, reducing their ability to enforce the law. An across-the-board cut would mean that the Equal Employment Opportunity Commission would have fewer resources to enforce fair pay protections and that the Department of Education’s Office for Civil Rights would have less agency to enforce Title IX’s protections against gender-based discrimination.
  • Critical civil rights data would be lost. For example, AAUW relies on the American Community Survey and other surveys for our research on the gender pay gap; women’s underrepresentation in science, technology, engineering, and math (STEM); and other issues that hinder gender equity and civil rights in our society. Policy makers need this information to make informed decisions.
  • Women’s health would be endangered, as funding cuts would reduce the number of women able to access the Title X Family Planning Program. This program, which was signed into law by President Nixon, provides reproductive health services to low-income women. Cutting it would make it difficult for those women to access necessary medical care.
  • Programs that promote gender diversity in STEM would be threatened. Despite substantial progress since the enactment of Title IX in 1972, women remain underrepresented in STEM careers. Cutting programs that encourage girls’ engagement would likely lead to further stagnation or even declines.

AAUW is a nonpartisan organization, but we’re also multi-partisan, representing a variety of political affiliations and viewpoints. Despite our differences, AAUW members come together to get things done and serve our communities. Congress should do the same. Decisions about our nation’s budget and deficit will only get harder if a solution is deferred. Take action and tell your representative and senators to protect these important programs!

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Piggy Bank with back to school message

Welcome back to AAUW’s Budget 101 series, where we examine tax and budget issues in the news. So far, we’ve gone over the federal budget, the impact of Bush-era tax policies, the payroll tax “holiday,” unemployment insurance, and what happens if we go over the “fiscal cliff.” In this post, we’ll talk about what Congress and the White House should do to avoid the cliff.

For several years now, AAUW has advocated for commonsense budget policies that promote fairness and fiscal responsibility. We believe that any outcome to the current debate must 1) focus on job creation, 2) be balanced in its approach to spending cuts, and 3) include additional revenues. Specifically, AAUW supports returning to the Clinton-era tax rates for high-income earners while continuing the current rates for the middle class. This policy will ensure a balanced approach to deficit reduction without creating devastating results for America’s middle class. Additionally, AAUW strongly prefers that Congress avoid further extensions of the payroll tax cut holiday, which breaches Social Security’s guaranteed funding stream and forces the program to rely on transfers from the U.S. Treasury’s coffers, setting a problematic precedent that may undermine Social Security’s long-term solvency.

AAUW is a nonpartisan organization, but we’re also multipartisan, representing a variety of political affiliations and viewpoints. Despite our differences, AAUW members come together to get things done and serve our communities. Congress should do the same. These decisions will only get harder if a solution is deferred.

Since our founding in 1881, AAUW has been breaking through educational and economic barriers to empower women. Our member-adopted Public Policy Principles support “public budgets that balance individual rights and responsibility to the community.” Like most Americans, AAUW members applaud financial success and responsibility but also value fairness and community. When the top 2 percent of earners and the wealthiest corporations get tax breaks the country can’t afford, the middle class has to make up the difference — otherwise we simply add more to the budget deficit and national debt.

AAUW has long been committed to speaking out for women and their families. We support budget policies that further the principles of fairness and fiscal responsibility — these ideas are not mutually exclusive. Congress should act, and act now, to avoid the fiscal cliff.

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