Fiscal Policy

Maya MacGuineas, Director of New America's Fiscal Policy Program and President of the Committee for a Responsible Federal Budget, testified before the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, and International Security on May 25, 2006. The full text of her prepared remarks is available below in PDF format.

The Committee for a Responsible Federal Budget expressed dismay over the growing use of gimmicks to circumvent budget rules, citing both the pending emergency supplemental bill and the tax reconciliation legislation as problematic.

For the complete release, please see the attached PDF version.

Entrepreneurs and small businesses are the backbone of the American economy. They comprise 99% of all employers and create 75% of our nation's new jobs. Both sides of the aisle consistently claim to represent their interests -- yet what policies should Washington pursue to help this vital sector?

Please see the attached PDF version below. 

New research reveals that California is dead last in bringing home the country's largest resource for working-poor families. By April 17, hundreds of thousands of Californians will miss out on applying for the Earned Income Tax Credit (EITC), a source of sizeable refunds that give a financial boost to those at the low end of the pay scale. Golden State residents leave almost $1 billion in federal funds unapplied for. California families pay a big price when they leave these dollars sitting in Washington, D.C.

America's personal savings rate is abysmally low. Last year the personal savings rate was negative, the lowest annual rate since the Great Depression. Whether the objective is to promote retirement security, improve educational attainment, provide a financial cushion for life transitions, or increase national savings, the need to increase household savings is vitally clear. Public policy should take a cue from some innovative financial institutions that encourage connecting savings with the one activity that almost every household undertakes -- tax filing.

Congress is contemplating a gimmick that would circumvent existing budget enforcement rules in the Senate and increase long-term deficits.

Michael Dannenberg, Director of New America's Education Policy Program, spoke at the Center for American Progress' March 24, 2006, conference on tax reform. A complete transcript of his panel discussion is available below in PDF format.

The President’s budget projects a decline in the deficit from $423 billion in FY
2005 (3.2% of GDP) to $205 billion in FY 2011 (1.2% of GDP). The President has
proposed further savings in mandatory spending this year—a positive step.
However, the proposed savings in mandatory spending programs and the cuts in
non-defense discretionary spending programs would be more than offset by the tax
cuts and other increases in spending. Though the deficit is projected to decrease
under the proposed budget in the short-term, the President’s policies would actually

Although President Bush has presided over significant growth in federal spending, Congress routinely added to every budget he proposed in the last five years. On average, the extra spending totaled $80 billion a year, including supplemental appropriations for Iraq, Afghanistan and national disasters. By contrast, Congress routinely authorized less spending that President Clinton wanted.