Suzanne Mettler and John Sides write in their NY Times article that 96% of Americans have relied on government assistance. This includes the deduction for mortgage interest and tax free employer paid health insurance. They call these submerged government social policies. In my opinion, these are the two most likely tax benefits that we will lose in order to balance the federal budget. They also note that ideology determines whether we label government policies as used by producers or moochers.
Tag: Tea Party
The Rainy Day Fund Will Be Used
The Texas Society of CPA’s reports:
There are enough leaks in the Republican dike against using the funds to burst the dam. While Gov. Perry has not changed is opposition to using the fund, this week added to the number of Republican leaders who say the funds must be used. Last week we reported that Appropriations Chair Pitts (R-Waxahachie) said he had the votes to use the fund on his committee and this week Sen. Finance Chair Ogden (R-Bryan) said “We’re going to have to use a substantial amount of the rainy-day fund if we’re going to pass a budget.” While neither of these chairmen have the final say (it takes a three-fifths vote of the legislature to use the Rainy Day fund), there is growing Republican support as budget hearings continue to spell out the results of proposed budget cuts.
I wrote the above paragraph Thursday afternoon. This morning the Tea Party Caucus Advisory committee came out with strong language opposing the use of the Rainy Day fund in a letter to legislators saying, in part, “We strongly support a budget that is balanced without the use of any portion of the State’s Rainy Day Fund and without the imposition of new taxes, new fees that are effectively increased taxes (such as increased vehicle registration fees) or other new sources of revenue (such as gambling).” According to Jason Embry writing in his First Reading blog, “This is a very significant development. The Tea Party Caucus Advisory Committee consists of 13 tea-party organizers from around the state. They serve as a liaison back to the tea parties for the Tea Party Caucus, which consists of about a third of the membership of the House and two senators. “