The differences between the four budget proposals recently put forth by President Barack Obama, both Republican-majority houses of the U.S. Congress, and the Congressional Progressive Caucus are “stark,” according to a new analysis—while some provisions in the GOP blueprints “completely miss the mark in responding to what Americans say they want.”
The National Priorities Project (NPP), a non-profit, non-partisan research organization dedicated to making the federal budget process transparent, released on Friday.
The report compares how each budget proposal responds (or not) to the stated policy priorities of the American people, on key issues including jobs, education, Social Security, Medicare and Medicaid, food assistance, and military spending, as well as proposed strategies for tax reform and deficit reduction.
“Our analysis shows that, in most spending categories, the Congressional Progressive Caucus and the president would do the most to address the priorities voiced by the majority of Americans,” said Jasmine Tucker, research analyst for NPP and author of the report. “In some areas, the House and Senate budget proposals completely miss the mark in responding to what Americans say they want.”
For example, on the issue of taxing the wealthy, according to the NPP analysis:
- 68 percent of Americans think wealthy households don’t pay enough in taxes.
- The Obama budget proposal raises top capital gains tax rate to 28 percent and closes the “trust fund loophole” that allows heirs to avoid taxation, raising $208 billion over 10 years. Places limits on tax deductions for top income earners and implements the Buffett Rule ensuring a minimum tax rate for the wealthy. Places limits on tax deductions for top income earners and ends the “carried interest” loophole that benefits hedge fund managers to raise $17.6 billion over 10 years.
- The House budget calls for comprehensive tax reform that would lower tax rates for individuals and families. Closes some special interest tax loopholes but does not specify which ones. Eliminates the Alternative Minimum Tax that sets a minimum tax for the wealthy.
- The Senate budget contains no proposed changes to the status quo.
- The CPC proposal raises tax rates for richest 2 percent (earning more than $250,000 per year) to Clinton-era levels, and taxes capital gains investment earnings at higher rates, yielding $1.4 trillion in additional revenue over 10 years. Places a cap on the value of itemized deductions that mostly benefit the wealthy (raising $566 billion over 10 years) and limits other tax deductions for top income earners.
Similar discrepancies exist on almost every issue.
As Tucker put it: “The differences between the four budget proposals are stark, and all signs indicate a difficult budget battle ahead as lawmakers try to resolve widely different approaches despite clear public opinion in favor of certain policies.”
SCROLL TO CONTINUE WITH CONTENT