Make the U.S. Budget Fair for Women and Children

March 23, 2003

Take Action:

The Senate has not passed the FY 2004 Budget Resolution, S.Con. Res. 23, and we need your help to make the budget fair for women and children. The Senate adjourned Friday evening and put off a final vote on the budget bill until Wednesday, March 26. The massive tax giveaway for millionaires is included in the proposed budget, and most of the discussion last week was around amendments offered by Senators trying to soften the harsh effects of the cuts.

Although Senate moderates failed in their effort to halve the $726 billion package of tax cuts to $350 billion, they did vote to put $100 billion into a reserve fund to pay for the unfolding conflict in Iraq. The fate of the final Senate budget is still up in the air until the vote Wednesday, so please contact your Senators before then. You can find out what amendments were discussed and how your Senators voted. Because there is no filibuster allowed on the Budget Resolution, our side will need 51 votes to prevail. Also, because the Senate and House will have different versions of the budget, it is important to insist that the Senate stand firm on behalf of the majority of taxpayers who will see no relief. We must insist that they oppose the tax giveaways. That is the only way that the budget conference committee, meeting during the next two weeks, will be able to craft a bill which is less harmful to women, children and low- to moderate-income working families.

Background:

Within the Republican proposed budget is the second round of George W. Bush's tax cut proposals. Combined with earlier tax cuts, this raiding of the Treasury would create a national debt of $5 trillion by 2008-and that's before the costs of war on Iraq are counted. Many analysts say that the cuts will mainly benefit very high-income earners. We must stop the Bush administration and the right-wing leaders in Congress who want to slash government programs and make their rich friends richer! If we cannot win the votes in Congress, then we need to make sure our voices are heard back home - especially in the next election.

Both the Senate and House debated the budget and tax cut package this past week and advocates for low- and moderate-income working families mounted a massive effort to let them know that more money for the wealthy will not solve our immediate economic problems. More than 2 million workers have lost their jobs over the last year; many millions more could be out of work unless our economy is turned around soon. As important, the huge loss of revenue to the government will undoubtedly result in deep cuts in human needs programs, since we know that the military-minded leadership won't be cutting the defense budget.

The House passed its Budget Resolution late Thursday night by a very close margin, 215-212 with some moderates expressing concern about the amounts of the cuts and the timing. The plan includes significant reductions in veterans' benefits and huge cuts in Medicare, Medicaid, Food Stamps, farm programs and other areas. The President's tax cut package of $1.4 trillion through 2013 is also in there - some analysts project the costs of his tax cuts to range as high as $1.9 trillion over the next ten years.

The Tax Policy Center estimates that this plan would mean an average tax break of $90,000 for everyone who earns more than $1 million. Almost half (48 percent) of taxpayers would receive less than $100 in benefits from the Bush tax cuts; 31 percent of taxpayers would get no benefits at all!

Activists for women, children and families should be horrified. Congress, if they had rejected the Bush tax cut, could have provided enough funds to cover health insurance costs for 33 million of the 75 million who were uninsured over the last two years. For just half of the tax cut, 100,000 new teachers could be hired, urgent school construction needs could be met and 9 million low-income children could receive special math and reading assistance. The list of unmet needs is long and Bush with his right-wing colleagues in the Congress appears not to care. Our voices need to be strong in letting our Congress members -- and especially the senators -- know that they are heading this country down the wrong track.

Some senators proposed a compromise - that a tax cut package of up to $350 billion-about half the Bush/House amount-be considered. The Senate failed to add this Breaux (D-LA) amendment, 38-62, with a dozen Democrats voting against it, agreeing with NOW and our many allies that even this is too much. When we face the uncertainty of war, a poor economy, high unemployment and increased welfare rolls, NOW President Kim Gandy says, "It is truly the height of fiscal foolhardiness to be passing any large scale tax cuts-especially when Congress says that they will have to then cut programs that help millions of low- and moderate-income families whose taxes aren't being cut at all."

For up-to-date details on the Bush administration's and House's irresponsible tax cuts and 2004 spending proposal, check out Fair Taxes for All, the coalition website; the Center for Budget and Policy Priorities, and the March edition of the NOW Legislative Update. The war has kept press coverage sparse but some editorials have been compelling.

Please pass this message along to your friends and remember that there will still be work to do after the Wednesday Senate budget vote.

Check to see how your Senators and Representative voted on the budget resolution as well as the various amendments. Thank our supporters and keep "educating" our opponents. Join with other groups in your state and community and voice your absolute opposition to tax breaks for millionaires at the expense of human service programs.

For those of you who want to go the extra mile, check to see which Members have seniority on the House or Senate Budget or House Ways and Means / Senate Finance Committee. The top 3 or 4 members of each committee who have been in Congress the longest will be involved in the budget conference committee and/or the tax cut negotiations during "reconciliation" and MUST HEAR FROM YOU starting now. Your personal contact could influence the outcome of this debate.