Congressional Budget Plan Hurts Poor

Author: Judge Mathis

Published: December 2, 2005

The United States budget is more than just an accounting tool, designed to help the country focus it's spending. It's more a reflection of the government's priorities, showing American citizens - and the world - just what segments of society the government cares about. The U.S. House of Representatives just passed, albeit narrowly, a $50 billion budget-cutting bill that clearly illustrates what and whom those leaders are concerned with. As is most often the case in this country, poor and low-income Americans did not make the list.

The House voted 217 to 215 to approve the bill, which would deny food stamps to more than 200,000 low-income people each month and cut basic food aid by nearly $700 million over five years. In addition, federal funding for child support enforcement efforts would be eliminated and states would be able to impose new co-payment and premium fees on Medicaid beneficiaries, while reducing the services the program provides. The bill also included provisions for an increase in student loan interest rates and fees.

These cuts are supposed to trimthe country's deficit and save over $50 billion over the next five years. The long-range effects of the cuts, however, will end up costing the government, and society, much more in the long run. The National Center for Children in Poverty predicts that the reduction in social programs will lead to increases in the number of people who are un- or underinsured, living in unsafe or unstable housing or who are homeless and families that don't know where their next meal is coming from. With the House's plan, more and more families and children will be pushed deeper into poverty. This is a direct contradiction of President Bush's promise to help 'uplift the poor', made after the devastation of Hurricane Katrina shed some much needed light on the state of poverty in this country.

The House could have easily saved the same $50 billion by lowering the prices Medicaid pays for prescription drugs or reducing the payments made to managed care plans. The House could have cancelled two tax cuts, scheduled to begin January 1, designed specifically for wealthy people. According to the Brookings Tax Policy Center, a nonpartisan think tank, these new tax cuts will be added on to existing cuts that, provide tax breaks of just over $100,000 apiece to individuals earning over $1 million a year. The Senate was able to approve their own budget reduction bill that, for the most part, stayed away from cuts that directly affected poor and working class citizens. The Senate bill also included a $5 billion tax on big oil companies - the White House threatened to reject that proposal. The House and Senate must now combine their plans, reaching a compromise that can be sent to the President for approval.

If legislators fail to deliver a plan that puts the needs of America's neediest citizens over corporate interests, then we must do our part and vote them out of office come election time. The health and welfare of Americans should be the government's top priority; our vote is our strongest weapon in ensuring that it is.

Judge Greg Mathis is Chairman of the Rainbow PUSH-Excel Board and a National Board Member of the Southern Christian Leadership Conference.