Fact Sheet on the FY2014 Republican Budget
The House Republican budget reduces jobs and slows economic growth, slashes critical investments in our future, and breaks our promises to seniors while protecting tax breaks for special interests and the very wealthy.
REDUCING JOBS AND SLOWING ECONOMIC GROWTH
- Putting Americans back to work is the fastest and most effective way to reduce the short-term deficit – but the Republican budget turns its back on American workers.
- Because their budget fails to replace the sequester in 2013, we still stand to lose 750,000 jobs this year, according to the Congressional Budget Office (CBO).
- According to initial estimates by the Economic Policy Institute, the House Republican budget would cost 2 million jobs in 2014 alone, relative to current policy.
PROTECTING TAX BREAKS FOR SPECIAL INTERESTS AND THE VERY WEALTHY
- The House Republican budget increases tax breaks for the wealthiest in the country at the expense of middle-income taxpayers, who will pay an average of $2,000 more per family.
- It fails to reduce the deficit by one dime by closing special interest tax breaks, like those for big oil, corporate jets, and overseas tax havens.
SLASHING CRITICAL INVESTMENTS IN OUR FUTURE
- This budget guts our investment in things that are important to helping our economy grow: our kids’ education, transportation and infrastructure, and science and research.
- Non-defense discretionary spending – the part of the budget that goes to fund the National Institutes of Health, air traffic controllers, food safety inspectors, Head Start – is cut by more than twice as much as it would be cut if the sequester went into effect and stayed in effect for ten years. In 2014, that means $55 billion below sequester.
BREAKING OUR PROMISES TO SENIORS
- The GOP budget cuts $810 billion in Medicaid. That cuts almost a full third of Medicaid in 2023 – and remember, two-thirds of Medicaid spending goes to individuals with disabilities and seniors.
- House Republicans would immediately reduce the prescription drug benefit by re-opening the coverage gap, or “donut-hole,” and it increases costs to seniors for preventive care services. Reopening the donut hole alone will increase costs for Medicare beneficiaries with high prescription drug costs by an average of over $13,000 from now through 2022.
- Over the long-term, this budget ends the Medicare guarantee, giving seniors a voucher and shifting the risks of rising health care costs onto the elderly, who have a median income of less than $22,500 a year.
BALANCING THE BUDGET WITH REVENUE AND HEALTH SAVINGS THEY VOTED AGAINST
- It is a total hoax for House Republicans to say at the same time that they are both repealing Obamacare and balancing the budget in ten years.
- This budget includes the $716 billion in Medicare savings from Obamacare – despite all the demagoguery from the GOP on this issue.
- House Republicans also take all the revenue from health care reform – $1 trillion over ten years – but repeal the parts that made coverage more affordable for 27 million people and established important patient protections.
- Additionally, they include revenues enacted as part of the fiscal cliff deal – even though the majority of the House Republican caucus voted against that legislation.
The question is not whether we should reduce the deficit, but how. Republicans claim they are ‘reigniting the American Dream’ – but only for those who have already succeeded, while smothering it for everyone else. For the vast majority of working Americans, this budget only makes it harder to make ends meet.