Behind the Curtain: The Deficit-Exploding Reality of the GOP Budget
Behind the Curtain: The Deficit-exploding Reality of the GOP Budget
WASHINGTON, DC - Amid frantic scurrying by House Republican to find enough votes to pass their deficit-exploding budget plan, Democratic Chief Deputy Whip Diana DeGette (D-CO) charged that the GOP leadership was sacrificing America's future in order to pay for tax cuts for the wealthy:
"Today, the House Republican leadership will try to pass the so-called "Deficit Reduction Act of 2005." But calling this plan deficit reduction' certainly does not make it so," said Rep. DeGette. "Instead, their reckless combination of budget cuts to health care, education and other critical services and tax breaks to the wealthy will add $52 billion to our already unmanageable deficit. America can do better than sacrifice its future to pay for tax cuts for the wealthy."
The Republican budget proposal cuts $54 billion in spending and adds $70 billion in tax giveaways to the rich. The House leadership plans to follow this with an additional $36 billion in tax cuts, adding a total of $52 billion to the deficit in order to reduce taxes on those with the most money in our country.
Making America Less Competitive by Hiking Student Loan Costs
Higher education, the critical component in maintaining Colorado's economic competitiveness, is getting less and less affordable. Last year, the University of Colorado system increased tuition by 17 percent, one of the largest increases in the country. More than 120,000 students in Colorado currently receive financial aid. In the 1st Congressional District alone students received more than $366 million in education loans in 2004. Under the Republican plan to cut $14.3 billion from student loan programs, students receiving loans would have to pay as much as $5,800 more over the lifetime of their loan.
"Coloradoans already facing higher gas prices and higher home heating bills and, thanks to last year's near-record tuition increase at CU, higher tuition are going to find themselves paying even more for their kids' college education," said Rep. DeGette. "This budget slashes $14.3 billion from student loan programs, making college even more expensive for the 120,000 students in Colorado receiving financial aid."
The Deadbeat Parent Relief Act: Cutting Child Support Enforcement
Inexplicably, the Republican plan also slashes federal funding for child support enforcement by $4.9 billion over five years. Much of this saving will come from reducing funding for state enforcement programs from 66 percent of program costs to 50 percent. The Congressional Budget Office (CBO) estimates that this will actually reduce the collection of child support payments by $24.1 billion over 10 years. Colorado would lose $316 million over that period. This would mean less money for single parents trying to pay for their children's education, medical bills and other essential needs.
"It is appalling that Republicans are asking single parents in Colorado already struggling to pay for essentials like fuel and health care to make do with less just so that the can give tax cuts to the wealthy," said Rep. DeGette. "There is no justification for using tax cuts as an excuse to give deadbeat parents a break."
Asking the Sick to Pay More for Health Care
The GOP budget would eliminate more than $11.9 billion from Medicaid, which provides health care to the poor. In Colorado, 430,000 people use this program. Over five years, Colorado would lose $94 million in Medicaid funding. The plan would also allow states to require people on Medicaid earning as little as $12,830 a year to pay part of the cost for prescription drugs and emergency room visits.
"For God knows what reason, Republicans decided that the best way to pay for tax cuts for the rich is to take money away from providing health care to poor families," said Rep. DeGette. "By eliminating health care, or increasing the financial burden on poor in order to dissuade them from seeking care until they are desperately ill, this plan will ultimately place a far greater financial burden on Colorado taxpayers in emergency room bills and higher state taxes. It simply does not reflect the values of Coloradoans to take away services from those who need them to give more to those who don't."
Food Stamps
The poor not only lose health care under this bill, but food is taken away from them as well. It would cut $844 million from food stamps by placing severe limits on who can receive benefits. The CBO estimates that 225,000 citizens will lose food stamps as a result of these changes, including many low-income families with children. As a result, as many as 40,000 kids will also lose free school lunches. Each month, an average of 240,000 people rely on food stamps in Colorado.
http://www.house.gov/apps/list/press/co01_degette/051110.html