Federal Issues

The federal government contributes significantly to our state's economy through federal spending in Georgia for things like Social Security and Medicare. In addition, the federal government provides over forty percent of the money in the state budget, helping to support, for example, education and health care. Federal issues are growing increasingly urgent. The federal government is running a significant budget deficit while fighting wars and cutting taxes. This course is not sustainable. Over the next several years, reality will require critical decisions about federal spending and taxes. To keep you informed, we will post links on this page to useful analyses of timely issues by reliable experts. Check with us to stay current.

Hot Links on Federal Issues

July 31, 2006: A new United States Treasury Department study on the cost of extending the President's tax cuts refutes many of the exaggerated claims about the economic and revenue effects of the Administration's tax cuts that have been made by the President and other senior Administration officials. The Treasury study finds that even under the most favorable assumptions, making the tax cuts permanent would have a barely perceptible impact on the economy. Under the study’s best-case scenario, the modest economic impact of the tax cuts would offset less than 10 percent of the cost of making the tax cuts permanent. For more information visit www.cbpp.org/7-27-06tax.pdf.

July 17, 2006: The Center on Budget and Policy Priorities issued a report that raised questions as to whether the Georgia TANF program should be considered a model for the nation. This report raised serious questions about whether Georgia has achieved its higher work participation rate by doing a better job to help parents move from welfare to work or by restricting poor families’ access to assistance. For more information visit www.cbpp.org/7-17-06tanf.pdf.

July 11, 2006: The Center on Budget and Policy Priorities issued a report that analyzes the Mid-Session Review authored by the White House Office of Management and Budget. The report found that the recent revenue increases do not materially effect the long run fiscal outlook. Nor do they change the fact that the Administration and Congress have enacted large tax reductions that have significantly increased the deficits. For more information visit www.cbpp.org/7-10-06bud.pdf.

July 11, 2006: The Center on Budget and Policy Priorities issued a report that examined a broad range of key economic indicators that shows that the economic recovery has not been particularly strong. Relative to economic recovery periods in the past, the current recovery, on average, has been somewhat weaker than average. For more information visit www.cbpp.org/8-9-05bud.pdf.

June 29, 2006: Citizen for Tax Justice issued state-level reports estimating how much the tax cuts will cost households in the long run. For example, 99% of Georgians will end up paying $4.12 – in future federal tax hikes or cuts to federal spending – for every $1 in tax cuts they received from 2001 to 2006. Only the top 1% of Georgians, with over $1.1 million in annual income, will come out ahead, with $24,256 in net gains from the tax cuts. For more information visit www.ctj.org/pdf/debtga.pdf.

Publications — Federal Budget Analysis

Effects of the President’s Federal FY 2008 Budget Proposal on Georgia

This report highlights the impact on Georgia of the President’s Federal FY 2008 budget proposal. (03/21/2007)

GBPI Press Release – Federal Budget Cuts Will Hit Georgia Hard.

(02/24/2006)

The U.S. House of Representatives Budget Reconciliation Bill: What's at Stake for Georgia

This report provides an analysis of the U.S. House of Representatives Budget Reconciliation Bill and its impact on federal spending programs in Georgia. (12/08/2005)

Effects of the President’s Federal FY 2006 Budget Proposal on Georgia

An analysis of the President’s budget proposal and the effect on Georgia. (2/22/2005)

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