The Federal Budget
President Obama's budget proposal for the coming year
UCC Collegium of Officers' Response and Analyses of the Proposal
February 15, 2012
|
The Statement from the UCC's Collegium of Officers
President Obama released his proposed budget for
the 2013 fiscal year, which begins October 2012 and runs through Sept 2013.
While we do not agree with all its provisions, we believe it moves the country
in a positive direction.
We recognize the constraints facing the nation
and the President. A number of factors including the weak economy, high levels
of unemployment, unfunded wars, corporate tax loopholes, and cuts in income
taxes skewed to favor the wealthiest Americans have reduced tax revenues to
historic lows and created a large federal budget deficit. These limit the
ability of the federal government to perform its essential roles to help those
in need and promote the common good. (See General Synod resolution “For
the Common Good.”)
We are grieved that in a country of great wealth,
many of our nation’s households are struggling. Flawed economic policies and a
political system too captured by moneyed interests have driven the growth of
inequality and the decay of our nation’s industrial and economic infrastructure.
As people of faith, we must continue to call for
a federal budget that reflects our values of justice and integrity. We have a
particular call to stand with the most marginalized in our society, and with all
those who struggle in these difficult economic times. The Fiscal Year 2013
budget presents us with opportunity and challenge. Let us embrace a call to live
together in community, sharing in the common purpose of caring for our neighbors
here in the United States and around the world.”
|
| Analysis of
the President's budget, fiscal year 2013 (Oct. 2012 - Sept 2013) |
Job Creation. Unemployment has been at record levels for
over three years now and, despite some recent improvements, researchers report there
are still nearly four unemployed workers for each job opening. We continue to view job creation as the
nation’s priority. The President’s budget calls for $350 billion in job
creation measures including money for transportation projects and school
modernization. While this amount is too small to reduce unemployment to the
levels that were typical before the recession, it is an important and welcome help.
Deficit reduction.
Given the fragile state of the national
and international economies, experts believe that extreme deficit reduction at
this time would be detrimental. However, given the unsustainable level of the
federal deficit, it must be reduced in future years. This perspective is
reflected in the budget proposal. In 2013, the deficit would be one-third
smaller than in 2012 and will continue to shrink in future years.
Revenues. To
reduce the deficit and help pay for needed programs, the budget also
calls for some
tax increases. These will fall on those households and corporations that
have benefited the most in recent years. The President calls for the
Bush tax cuts of 2001 and
2003 to end for households with incomes above $250,000 ($200,000 for
singles). Additional
money would come from reversing cuts in the estate tax that were enacted
over
the past two years and closing some tax loopholes for oil and gas
companies.
Expenditures. We do have concerns about the large spending
reductions proposed for important social programs. The Budget Control Act of
2011 passed by Congress last summer limits both military and non-military discretionary
spending and these cuts – totaling some $1 trillion over 10 years -- are reflected
in the budget proposal. The President also proposes cuts in a group of entitlement
programs including the Earned Income Tax Credit, Food Stamps (Supplemental
Nutrition Assistance Program), Unemployment Insurance, military retirement and
veterans’ benefits. Important safety net
programs are already stretched thin and, in some cases, current spending is inadequate.
We will need to continue to advocate for strengthening the frayed safety net.
We believe that God calls upon all of us – as individuals, communities of faith, and a society acting together through our
government – to protect the vulnerable and promote the dignity of all people. The Fiscal Year 2013 budget
presents us with both opportunity and challenge. Let us embrace a call to live
together in community, not agreeing on everything, but sharing in the common
purpose of caring for our neighbors here in the United States and around the
world, and sustainably caring for our environment. We call on the
Congress and the Administration to shape a federal budget that promotes the
common good, values each individual and his or her livelihood, helps lift
the undue burden on the poor, and calls for the wealthiest to share fairly in
building our nation’s future.
Faith-based Allies' Assessments of the Budget
|
Interreligious Working Group on Domestic Human Needs
Ecumenical Faithful Budget Campaign: here and here
Coalition on Human Needs, posted on the Huffington Post website
