Legislation RSS Feed

Neighbordhood Stabilization Act of 2008

hmoroz — Fri, 09 May 2008 14:46:16 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Estimated economic activity generated by the Neighborhood Reinvestment Act, in dollars: 38 billion

Estimated employment generated by the act, in dollars: 120,000

Estimated real estate tax collections that will result from the act, in dollars: 225 million

Cost of the Neighborhood Stabilization Act between 2009 and 2013, as estimated by the Congressional Budget Office, in dollars: 8.4 billion

Estimated total decline in house values and tax base from foreclosures originated in 2005 and 2006 on nearby properties, in dollars: 202 billion

Number of rental homes that are available and affordable for every 100 extremely low-income families: 38

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The Neighborhood Stabilization Act addresses two important problems plaguing aspiring middle-class Americans: the community breakdown that can result from vacant foreclosed homes in neighborhoods across the country and the lack of affordable housing. Middle-class Americans who are current on their mortgages and face no personal risk of foreclosure are nevertheless harmed when a foreclosed home down the street brings down property values, erodes the local tax base, and threatens to become a magnet for crime. The Center for Responsible Lending has shown that approximately 40.6 million homes will experience devaluation because of nearby subprime foreclosures and that homeowners living near foreclosed properties will lose approximately $5,000 on the value of their homes. At the same time, one of the causes of the foreclosure crisis was a lack of affordable housing and the targeting of low-income neighborhoods by subprime lenders. By funneling federal money to local agencies to serve lower- and extremely low-income individuals, the Neighborhood Stabilization Act will help neighborhoods recover from the harm done to their communities by foreclosures while helping to ensure that neighborhoods can accommodate aspiring middle-class Americans. The bill’s allocation of funds to metro areas and urban counties further ensures that the communities hardest hit by the foreclosure crisis receive much needed relief. Providing funds for rental properties, along with protections for renters of foreclosed properties, recognizes that the foreclosure crisis affects aspiring middle-class and middle-class renters as well as homeowners.

Quotes from Experts

Beyond this Bill

Additional Resources

“Subprime Spillover”, from the Center for Responsible Lending

“Out of Reach”, a guide to rents and the lack of affordable housing from the National Low Income Housing Coalition

Center for American Progress on Neighborhood Stabilization

Genetic Information Nondiscrimination Act of 2008

hmoroz — Wed, 07 May 2008 13:53:02 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Projected cost of sequencing the complete genome of an individual within the next ten years, in dollars: 1,000

Total cost of the 13-year Human Genome Project, including studies of human diseases and experimental organisms, development of new technologies for biological and medical research, and other scientific activities, in dollars: 3 billion

Percentage of cancer genetics specialists who would not bill their own insurance company for colon, breast, or ovarian cancer genetic testing due to fear of genetic discrimination: 68

Percentage of Americans who are concerned that results from a genetic test that can tell patients whether they are at increased risk for a disease like cancer could be used in ways that would be harmful to them: 90

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Although cases of discrimination based on genetic testing are rare, as genetic testing becomes more widespread the risk that middle-class Americans who depend on health insurance could be denied insurance coverage or be terminated from a job solely for being at genetic risk for a disease is troubling. The legislation will facilitate the individualized approaches to health care that mapping the genome has made possible. Additionally, the bill would bolster popular support for genetic research by alleviating Americans’ fears of discrimination. Limiting the act’s prohibitions to use by employers and insurance companies would not stifle innovation in genetic research.

Quotes from Experts

Beyond this Bill

Additional Resources

Genetic Discrimination Resource Site, from the National Human Genome Research Institute at the National Institutes of Health

Dr. Francis Collins on the Threat of Genetic Discrimination to the Promise of Personalized Medicine

Protecting the Medicaid Safety Net Act of 2008

hmoroz — Mon, 28 Apr 2008 12:38:59 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of jobs the State of California alone stands to lose as a result of lost federal Medicaid funding from the new regulations, according to Families USA: 46,700

Year when the Departments of Health and Human Services, Education and Agriculture published a report concluding that schools were the best conduit for enrolling poor children in Medicaid: 2000

Date on which the Department of Health and Human Services acted to eliminate federal funds for outreach and enrollment of children in Medicaid through schools: 12/28/2007

Number of people – predominantly mentally ill individuals – who received psychiatric and other rehabilitation services under Medicaid in 2007: 1.46 million

Estimated amount of money the federal government would save in 2009 by ceasing to cover these services: $360 million

Approximate number of hours it takes to spend $360 million on the war in Iraq: 25

Overview/Summary

Middle Class Position Analysis

The Middle-Class Supports. More than 55 million Americans, predominantly low-income people and people with disabilities, rely on Medicaid for their health care coverage. By halting dramatic restrictions in federal funding for Medicaid, this legislation not only ensures continued health care access for these aspiring middle-class beneficiaries but also prevents a devastating loss of funding to states, public hospitals, and local schools which are already struggling during the economic downturn. In reality, the Medicaid regulations imposed by the Bush Administration do little to reduce Medicaid costs – they simply transfer these costs from the federal government onto states, hospitals, and local governments. In an effort to cope with the added cost burden, services that benefit the middle class, from trauma care at hospitals to public education, are put at risk.

Quotes from Experts

Beyond this Bill

Additional Resources

“Medicaid: Overview and Impact of New Regulations”, from the Kaiser Commission on Medicaid and the Uninsured

“Administration’s Medicaid Regulations Will Weaken Coverage, Harm States, And Strain Health Care System”, by Allison Orris and Judith Solomon from the Center for Budget and Policy Priorities

Plain Language in Government Communications Act of 2008

hmoroz — Fri, 25 Apr 2008 12:24:33 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Response rate to a Veterans Benefits Administration (VBA) letter to veterans asking them to update their beneficiaries, written before the VBA switched the letter to plain language: 43%

Response rate to the VBA letter after the agency switched the letter to plain language: 65%

Amount saved by the VBA’s use of plain language in the same letter in staff time spent researching valid beneficiaries when veterans’ have not updated their beneficiaries, in dollars: 5 million

Amount of time to answer questions about a Federal Communications Commission regulation not written in plain language by experienced people affected by the regulation, in minutes: 2.43

Amount of time to answer questions about the same regulation written in plain language, in minutes: 1.5

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Middle-class Americans should be able to easily understand communications from their government. Yet legalese is not confined to legislation and internal government memoranda. Americans who rely on Social Security benefits or veterans’ benefits to make ends meet, anyone who fills out tax paperwork, and any American who uses medication must interpret the convoluted technical language of benefits and tax documents and medicine warning labels. The audience-focused approach of the plain language standard would make benefits available to more Americans by making both application for federal benefits and eligibility requirement less confusing. Public access and transparency are key elements of good government and using plain, understandable language in government communications is a modest step toward both. The federal government would benefit because individuals and small businesses are more likely to comply with notices and instructions that they are able to understand easily and quickly. Additionally, the standard would reduce the customer support services that federal agencies must employ to explain obscure instructions. In general, the legislation would save time, money, and errors both inside of government and outside, benefiting middle-class Americans who rely on government services that are run effectively and efficiently.

Quotes from Experts

Beyond this Bill

Additional Resources

Examples of Plain Language, from PlainLanguage.gov

Center for Plain Language

Ensuring Continued Access to Student Loans Act of 2008

hmoroz — Thu, 24 Apr 2008 15:36:42 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Minimum number of student lenders in the Federal Family Education Loan Program: 2,000

Percentage growth in undergraduate federal borrowing between 1996-1997 and 2006-2007 school years: 51

Percentage increase in the number of undergraduate subsidized Stafford loan borrowers between the 1996-1997 and 2006-2007 school years who do not have to pay interest on their loans while attending school: 47

Percentage increase in the number of undergraduate unsubsidized Stafford loan borrowers between the 1996-1997 and 2006-2007 school years who must pay interest on their loans while attending school: 113

Percentage of total funds used to finance postsecondary education composed by private loans in the 1996-1997 school year: 3

Percentage of total funds used to finance postsecondary education composed by private loans in the 2006-2007 school year: 12

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. With 66% of students at four-year colleges holding student loan debt, the credit crunch has generated concerns that aspiring middle-class and middle-class college students and their parents will be unable to obtain the loans they rely on to afford college. Federally backed student loans, which are cheaper than private student loans, provide these students with a financial gateway to higher education. Increasing the amount of Stafford loans that students are able to borrow would help students cope with tuition costs that they would otherwise have to fund with more expensive private loans. The delay in PLUS loan repayment authorized by the bill, along with the exemptions for delinquency on mortgage and medical bill payment, recognize that the declining economy in general, and the collapsing housing market and rising health care costs in particular, are squeezing many middle-class American families. In conjunction with the act’s other provisions, the authorizations of funding for lenders-of-last-resort and for purchases of student loans by the government minimizes the risk that the marketplace for federally backed student loans will collapse.

Quotes from Experts

Beyond this Bill

Additional Resources

Trends in Student Aid, from College Board

"House Panel Addresses the Would-Be Student Loan Crisis", from Inside Higher Education

Student Aid on the Web, from the Department of Education

Civil Rights Act of 2008

hmoroz — Wed, 16 Apr 2008 11:04:56 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

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United States-Colombia Trade Promotion Agreement Implementation Act

atraub — Fri, 11 Apr 2008 10:44:25 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Foreclosure Prevention Act of 2008 [Revised Bill]

atraub — Thu, 10 Apr 2008 14:37:17 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Amount of mortgage-related assets that the Federal Reserve assumed as collateral for a loan it made to facilitate the sale of Bear Sterns to J.P. Morgan Chase: $30 billion

Amount this bill provides in tax refunds for businesses that claim a loss: $6.1 billion

Amount this bill provides to state and local governments across the country to shore up neighborhoods devastated by mortgage foreclosures: $4 billion

Estimated number of foreclosures prevented if Congress lifted the ban on loan modifications by bankruptcy courts, a provision this bill does not include: 600,000

Amount of home equity saved if Congress lifted the ban on court-supervised loan modifications that would otherwise be lost because of foreclosures of neighboring properties: $72.5 billion

Amount that lifting the ban on court-supervised loan modifications would cost middle-class taxpayers: $0

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. With two million families facing the loss of their homes over the next two years and large sectors of the U.S. economy destabilized by mortgage defaults, the foreclosure crisis and the wider turmoil it has caused are among the greatest threats to middle-class Americans today. This bill responds to that threat, although not in the most effective way. The bill is stuffed with costly and irrelevant provisions, while the positive steps it does include fail to go far enough to help struggling families. The single most effective measure proposed to address the crisis – a change in bankruptcy law that would prevent hundreds of thousands of foreclosures – was killed as an amendment. Meanwhile some provisions that did make it into the final bill could even make the foreclosure problem worse.

Positive measures in the bill include FHA modernization, which will enable more homeowners to refinance problematic mortgages. The block grants for communities hard hit by the crisis to reclaim foreclosed properties and turn them into affordable homes is another very positive step, but here too the amount of funding may be too little to revitalize neighborhoods in need. Funding for mortgage counseling is also beneficial, but inadequate. And while enhanced mortgage disclosures are helpful, they are no substitute for a genuine ban on deceptive lending practices along the lines enacted by some state governments. The tax exempt bonds for state agencies to refinance subprime loans is a modest effort which will inevitably bail out lenders, whose lax standards helped cause the crisis, along with struggling homeowners.

While provisions to help homeowners and devastated communities are stingy, home builders and other businesses facing economic losses due to the downturn reap $6.1 billion in tax breaks. This provision has little to do with helping prevent foreclosure and is not even a cost-effective means of economic stimulus. The property tax deduction for non-itemizers is similarly problematic. While many middle-class families might see a small tax break under this provision, the credit is not substantial enough to help families who face foreclosure or are having serious difficulties making mortgage payments and is not targeted at these homeowners. To make matters worse, the deduction is limited to people who live in areas that have not raised property taxes. This creates an incentive for states and municipalities to cut services that middle-class families rely on rather than raising the revenue needed to preserve them. Finally, the tax credit for buying a foreclosed home might, as the Washington Post point out, actually encourage more home foreclosures.

The alternative energy tax breaks, added at the last minute, are similar to those included in the House’s Renewable Energy and Energy Conservation Tax Act. Providing the public investment necessary to jump start the development and promotion of renewable energy sources and ultimately mitigate global warming sweetens what is otherwise a unsatisfactory effort to deal with the home mortgage crisis. Middle-class Americans will ultimately see some benefit from this bill – but they deserve better.

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Housing Legislation Highly Disappointing” from the Center for Budget and Policy Priorities

Mortgage Lending page from the Center for Responsible Lending

Helping Families Save Their Homes in Bankruptcy Amendment of 2008

hmoroz — Fri, 04 Apr 2008 13:47:08 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Percentage of securitized subprime loans from the fourth quarter of 2006 that are projected to end in foreclosure: 50

Percentage increase of foreclosure filings from February 2007 to February 2008: 60

Estimated number of foreclosures that a mortgage restructuring provision for primary residences would prevent: 600,000

Number of homes that will experience devaluation because of subprime foreclosures that take place nearby: 40.6 million

Average decline in property values for homeowners living near foreclosed properties, in dollars: 5,000

Amount of wealth the Center for Responsible Lending estimates would be saved by similar legislation that would otherwise be lost because of foreclosures of neighboring properties, in dollars: 72.5 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports the Durbin Amendment and Opposes this vote to kill the amendment. The federal government and the mortgage industry’s failure to address the subprime mortgage and foreclosure crisis adequately could result in as many as 1.9 million Americans losing their homes in 2008 and 2009. Despite national awareness of the dire situation throughout 2007, foreclosure filings increased 60% from February 2007 to February 2008. Extending the same bankruptcy protections to primary residences that currently apply to luxury yachts and vacation homes is not only fair, but would prevent 600,000 families from losing their homes to foreclosure. Strengthened bankruptcy protection is also beneficial to middle-class families who are not themselves facing foreclosure: protecting these 600,000 families from foreclosure would save neighbors of foreclosed properties $72.5 billion in wealth that would otherwise be lost to reduced property values. Because the Helping Families Save Their Homes in Bankruptcy Amendment restricts eligibility for bankruptcy mortgage restructuring to homeowners who are unable to afford currently existing mortgages, mortgage interest rates should not increase: only homes in danger of foreclosure will qualify and the risk of foreclosure is already calculated into current interest rates. The “homestead floor” of $75,000 for homeowners over the age of 55 who are in bankruptcy allows older middle-class Americans to protect a minimum amount of investments they have made in their homes, while preventing wealthy Americans from using large estates to shelter money from creditors.

Quotes from Experts

Beyond this Bill

Additional Resources

Testimony of Mark Zandi, Chief Economist of Moody’s Economy.com, before the Senate Judiciary Committee

Center for Responsible Lending on Court-Supervised Loan Modifications

Harvard Law Professor Elizabeth Warren on Bankruptcy Reform and the Housing Crisis

Amendment To Avoid Subjecting Thousands of Families, Family Businesses, and Family Farms and Ranches to the Estate Tax of 2008

hmoroz — Fri, 21 Mar 2008 15:26:43 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Maximum value of estate exempt from the estate tax in 2001, in dollars: 675,000

Top estate tax rate in 2001: 60

Maximum value of estate exempted by the Salazar Amendment, in dollars: 5,000,000

Top estate tax rate mandated by the Salazar Amendment: 35%

Top estate tax rate in 2009 if the Salazar Amendment is not enacted: 45%

Percentage of estate tax revenue that will come from the top 10% of the income distribution in 2007: 90

Amount of revenue that the estate tax will raise from the 14,000 estates subject to the tax in 2007: $19 billion

The effective tax rate – calculated based on the share of an estate actually paid in tax – that results from a 35% statutory estate tax rate with a $3.5 million per person exemption: 14%

Income and payroll tax rate for a family of four with an income of $60,000: 18%

Overview/Summary

Middle Class Position Analysis

Middle Class Opposes. Although the Salazar Estate Tax Amendment is revenue-neutral, and so will not increase the budget deficit, estate tax revision that significantly decreases the tax rate and increases the exemption still adversely affects the middle class. The estate tax applies only to Americans lucky enough to inherit substantial fortunes – approximately .5% of deaths result in taxable estates – and the amendment’s changes to the estate tax in 2009 would benefit only 3 of every 1,000 estates worth millions of dollars. The tax preserves the American tradition of rewarding hard work, not inherited privilege and wealth. The revenue neutrality of the amendment could require spending reductions for already underfunded federal programs that benefit the middle class or will oblige those who work for their money to pick up a bigger share of the tax bill while allowing accumulated wealth to be passed on for generations.

Quotes from Experts

Beyond this Bill

Additional Resources

The Estate Tax: Myths and Realities, from the Center on Budget and Policy Priorities

Testimony of Lily L. Batchelder, Associate Professor of Law & Public Policy, Before the Senate Finance Committee

Estate and Gift Taxes Background Documents, from the Tax Policy Center

Legislation RSS Feed

Neighbordhood Stabilization Act of 2008

Legislation

The middle class

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Genetic Information Nondiscrimination Act of 2008

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Protecting the Medicaid Safety Net Act of 2008

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Plain Language in Government Communications Act of 2008

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Ensuring Continued Access to Student Loans Act of 2008

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The middle class

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Civil Rights Act of 2008

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United States-Colombia Trade Promotion Agreement Implementation Act