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Kids and Deficits

Kids and Deficits. Ron Haskins The Brookings Institution March 16, 2009. “Recent and proposed fiscal policies – the tax cuts, proposals to make them permanent, and the medicare prescription drug bill – will hurt economic prospects for most of today’s children and all future generations.”

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Kids and Deficits

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  1. Kids and Deficits Ron Haskins The Brookings Institution March 16, 2009

  2. “Recent and proposed fiscal policies – the tax cuts, proposals to make them permanent, and the medicare prescription drug bill – will hurt economic prospects for most of today’s children and all future generations.” William G. Gale and Laurence J. Kotlikoff, 2004

  3. 1960 – 2007: Federal Spending on Children and Other Major Items (% of GDP) Source: The Urban Institute and The New America Foundation, 2008. Authors' estimates based on the Budget of the United States Government, Fiscal Year 2009 and past years. Note: Children's spending includes tax expenditures.

  4. Two Estimates of the Nation’s Budget Deficit, 2009-2019 Source: Alan J. Auberbach and William G. Gale, "The Economic Crisis and the Fiscal Crisis: 2009 and Beyond," February 19, 2009, (available at (ww.taxpolicycenter.org); Office of the President, A New Era of Responsibility: Renewing America's Promise (Washington, D.C.: Office of Management and Budget, 2009), p. 114. Note: The Auberbach/Gale estimate assumes that tax provisions are extended, that discretionary spending rises with inflation and population growth, and does not include the Social Security surplus.

  5. President Obama’s Stimulus PackageMarch 2009 Assistance: 13% or $99B Transportation & Infrastructure: 15% or $117B Energy: 7% or $61B Education: 7% or $48B Aid to State/Local Govt: 19% or $153B Health: 5% or $38B Other: 3% or $23B Tax Relief: 31% or $247B Source: Several Sources, but especially, Center for Law and Social Policy, “Preliminary Summary of Key Provisions of the American Recovery and Reinvestment Act Aimed at Improving the Lives of Low-Income Americans” (Washington, D.C.: Author, February 13, 2009).

  6. Selected Provisions that Increase the Deficit in 2019 Proposed in President Obama’s 2010 Budget Provision Cost in 2019 Tax Provisions: Making Work Pay 68.0 Expand EITC 4.4 Child Tax Credit; Expand Refundability 9.1 Expand Saver’s Credit 9.4 American Opportunity Tax Credit 11.3 Subtotal $102.2 Education: Pell (but offset) 17.8 Access and Completion Incentive Fund - Subtotal $17.8 HHS: Nurse Home Visiting Program 1.8 TANF Supplemental Grants 0.3 Create Home Energy Trigger 0.4 Subtotal $2.5 Labor: Trade Adjustment Assistance 0.7 New Trigger for Extended Unemployment 2.1 Subtotal $2.8 Other: Appropriated Programs, Health Care Reform ($634 billion), Child Care, Head Start, Promise Neighborhoods, Community Development Block Grant, New Voices Neighborhoods, Housing, Prisoner Re-Entry, Youth Build, Social Innovation Fund, Social Security Administration, Revise Asset Tests for Means-Tested Programs Source: Office of the President, A New Era of Responsibility: Renewing America's Promise (Washington, D.C.: Office of Management and Budget, 2009), p. 114.

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