Heating fuel

American Recovery and Reinvestment Act of 2009 - House Version

hmoroz — Thu, 29 Jan 2009 11:59:07 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Unemployment rate in early 2010, if current laws and policies governing federal spending and taxes do not change, according to the Congressional Budget Office: 9.2%

Reduction in unemployment rate in 2010 if the American Recovery and Reinvestment Act is enacted, according to the Congressional Budget Office, Mark Zandi of Moody’s Economy.com, and White House economic advisers, respectively: 1.9%, 2.1%, 1.8%

Number of individuals that expanded health insurance benefits included in the legislation will keep from losing health insurance: 8.5 million

Increase in GDP from spending $1 on extended unemployment insurance benefits, in dollars: 1.63

Increase in GDP from spending $1 on accelerated depreciation, which provides businesses a tax break for new investment, in dollars: 0.25

Number of dollars spent on highways for every four dollars spent on transit: 10

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Economic conditions are bleak. The Congressional Budget Office estimates that if the economy continues on its current course, both the length and depth of the current downturn will be the worst since the Great Depression. For middle-class Americans, this means job and wage cuts, loss of health insurance, and, simply, a daily struggle to keep up with everyday costs like mortgage payments and college tuition.

The Congressional Budget Office estimates that if current economic conditions persist the unemployment rate could reach as high as 9.2% by 2010. With 46 million Americans already uninsured, the Kaiser Family Foundation reckons that if unemployment averages just 7% in 2009 (the current rate is 7.2%), the number of uninsured will increase by 2.6 million with an additional 2.4 million individuals enrolled in Medicaid and SCHIP. Indeed, state governments are struggling to provide the increased services needed to keep the swelling ranks of unemployed, uninsured individuals from falling out of the middle class. But the current economic climate has left states with decreased revenue from income, sales, and property taxes: 45 states face budget shortfalls with combined budget gaps of $350 billion through 2011. To confront these gaping budget holes, more than 20 states have implemented or are considering cuts to health insurance programs; the same is true of K-12 and early education programs and of funds for public colleges and universities.

Beyond the decidedly dire short-term outlook, economic improvement is probably quite far off. Douglas Elmendorf, director of the Congressional Budget Office, has testified that “economic recovery is likely to be slow and protracted.” Thus, programs that address longer-term concerns – investment in infrastructure and green technology are two primary examples – are as important as an immediate, stimulative jolt to the economy.

The American Recovery and Reinvestment Act ties together measures designed to assist middle-class households struggling to make ends meet, provisions that will provide an immediate economic stimulus, and investment that can help set the stage for an economy built on energy efficiency and durable infrastructure. Economists generally agree that the legislation will save around 3 or 4 million jobs by 2010, while increasing economic output. Indeed, the Congressional Budget Office, Mark Zandi of Moody’s Economy.com, and White House economic advisers all project that the legislation will reduce the unemployment rate by around 2%. Extended unemployment insurance will allow 6.7 million people to collect benefits. Expanded COBRA and Medicaid insurance programs will keep 8.5 million individuals from losing insurance. Importantly, aid to state governments for Medicaid and education programs would shore up budget gaps and help prevent cuts to vital services.

While assisting those most at need during the economic downturn, extended unemployment insurance and state fiscal assistance also generate the most “bang for their buck" in terms of stimulus because they funnel money into the hands of the people most likely to spend it. Extended unemployment insurance generates an estimated $1.63 in economic activity for each dollar spent; aid to state governments generates $1.38. In contrast, though they act more quickly than spending measures, tax cuts generate less stimulus. The Making Work Pay, Child, and Earned Income tax credits will help keep more than 2.5 million Americans out of poverty and the American Opportunity credit will make 3.8 million more students eligible for a higher education tax break. These are important measures that will assist aspiring middle-class and middle-class Americans struggling to make ends meet. But the expansions are temporary and tax cuts, even when refundable and directed at the low-income individuals most likely to spend them, are less effective stimulus measures. Worst of all, though, are tax cuts for businesses like accelerated depreciation and carryback loss provisions that have little economic benefit.

Despite concern that the spending included in the American Recovery and Reinvestment Act will be delayed, perhaps a valid concern due to the legislation’s size and complexity, the Congressional Budget Office estimates that 85% of the spending will occur between 2009 and 2011. Indeed, funds for investment in infrastructure and energy efficiency, though perhaps more complicated to spend, are a critical step in longer term economic recovery. Beyond its stimulative value – infrastructure spending’s “bang for the buck” is $1.59 – the United States desperately needs new infrastructure to compete in the global economy. The American Society of Civil Engineers estimates that $2.2 trillion in infrastructure spending is now necessary. The $160 billion for infrastructure projects included in the legislation is a first step in addressing this deficiency. Similarly, spending on a modernized electricity grid, retrofitted low-income housing, and weatherized homes creates the framework for a future economy less reliant on fossil fuels and, indeed, based on green technology.

Quotes from Experts

Beyond this Bill

Additional Resources

“Recession and Recovery,” from the Center on Budget and Policy Priorities

“The State of the Economy and Issues in Developing an Effective Policy Response,” Statement of Douglas W. Elmendorf before the House Committee on the Budget

“Impact of Economic Turmoil on Health Coverage and State Medicaid Programs,” from the Kaiser Commission on Medicaid and the Uninsured

American Recovery and Reinvestment Act of 2009 - House Version

hmoroz — Thu, 29 Jan 2009 11:59:07 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Unemployment rate in early 2010, if current laws and policies governing federal spending and taxes do not change, according to the Congressional Budget Office: 9.2%

Number of individuals that expanded health insurance benefits included in the legislation will keep from losing health insurance: 8.5 million

Increase in GDP from spending $1 on extended unemployment insurance benefits, in dollars: 1.63

Increase in GDP from spending $1 on accelerated depreciation, which provides businesses a tax break for new investment, in dollars: 0.25

Number of dollars spent on highways for every four dollars spent on transit: 10

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Recession and Recovery,” from the Center on Budget and Policy Priorities

“The State of the Economy and Issues in Developing an Effective Policy Response,” Statement of Douglas W. Elmendorf before the House Committee on the Budget

“Impact of Economic Turmoil on Health Coverage and State Medicaid Programs,” from the Kaiser Commission on Medicaid and the Uninsured

Comprehensive American Energy Security and Consumer Protection Act of 2008

hmoroz — Fri, 19 Sep 2008 17:12:59 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage increase in annual crude oil production in 2030 if restrictions on access to drilling in the Outer Continental Shelf are lifted, according to the Energy Information Administration: 7

Projected impact of this increased production on the price of oil: “insignificant”

Percent of world’s known reserves in the United States: 1.58%

Percentage of carbon emissions in the United States from residential and commercial buildings: 39

Number of new jobs that the American Solar Energy Society found were generated by U.S. renewable energy and energy efficiency industries in 2006: 8.5 million

Estimated number of jobs created in 2030 in U.S. renewable energy and energy efficiency industries, assuming no policy changes before 2030: 16 million

Estimated number of jobs created in 2030 in U.S. renewable energy and energy efficiency industries, assuming moderate, incremental federal and state renewable and energy efficiency initiatives and favorable market conditions: 21 million

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Though the extremely high gas prices experienced this summer have eased, middle-class Americans remain strapped by a combination of difficult economic conditions that include elevated fuel costs, a tanking housing market, an endangered financial system, and widespread unemployment. The renewable energy and energy efficiency provisions adopted by the legislation – from credits for energy-efficient home appliances to green building standards and energy-conscious low-income housing – demonstrate a commitment to transforming the environment and the economy that can reduce energy costs and provide jobs for middle-class Americans struggling to make ends meet. Such measures are impotant steps in making the country more energy efficient and ensuring that the nation retains and produces more jobs in renewable energy and technology. Finally, the renewable electricity standard establishes an important incentive for electricity providers to switch to renewable energy sources, a commitment these providers have not made on their own.

The revenue-raising measures appropriately target the oil companies who have benefited grandly from high oil prices. Additionally, ethics reform is desperately needed in the Mineral Management Service after disturbing reports of oil industry influence buying in the agency.

Quotes from Experts

Beyond this Bill

Additional Resources

Clean Energy 101, from the Union of Concerned Scientists

Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, from the Appollo Alliance

Impacts of Increased Access to Oil and Natural Gas, from the Energy Information Administration

Comprehensive American Energy Security and Consumer Protection Act of 2008

hmoroz — Fri, 19 Sep 2008 17:12:59 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage increase in annual crude oil production in 2030 if restrictions on access to drilling in the Outer Continental Shelf are lifted, according to the Energy Information Administration: 7

Projected impact of this increased production on the price of oil: “insignificant”

Percent of world’s known reserves in the United States: 1.58%

Percentage of carbon emissions in the United States from residential and commercial buildings: 39

Number of new jobs that the American Solar Energy Society found were generated by U.S. renewable energy and energy efficiency industries in 2006: 8.5 million

Estimated number of jobs created in 2030 in U.S. renewable energy and energy efficiency industries, assuming no policy changes before 2030: 16 million

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Clean Energy 101, from the Union of Concerned Scientists

Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century, from the Appollo Alliance

Impacts of Increased Access to Oil and Natural Gas, from the Energy Information Administration

Warm in Winter and Cool in Summer Act of 2008

hmoroz — Tue, 12 Aug 2008 13:24:51 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of households eligible to receive federal aid through LIHEAP: 38 million

Number of households receiving federal aid from LIHEAP in Fiscal Year 2007: 5.8 million

Percentage cut in LIHEAP funding proposed by President Bush’s Fiscal Year 2009 budget: 22

Percentage of annual income that households receiving LIHEAP spend on home energy bills: 15

Percentage of annual home heating oil costs covered by LIHEAP grants in 2003: 36.7

Percentage of annual home heating oil costs covered by LIHEAP grants in 2008: 23.1

Percentage of LIHEAP households reporting an annual income at or below $20,000 in 2005: 77

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Winter home heating prices have increased almost 80% since 2001. As prices continue to rise, more and more aspiring middle-class Americans are struggling to heat their homes in the winter and cool them in the summer. The Low-Income Home Energy Assistance program is critical to helping lower income Americans who use a disproportionately large amount of their household income on energy costs cope with rising home heating. According to the National Energy Assistance Director’s Association, the majority of these households have at least one member who is elderly, disabled, or a child under five. While the number of households receiving assistance has increased along with rising energy costs in recent years, the average LIHEAP grant has declined from $349 to $305 per household. The additional appropriations made in the Warm in Winter and Cool in Summer Act will help prevent states from reducing the number of grants they issue or cutting the amount of each grant. This supplemental appropriation is critical to ensuring that rising energy prices do not continue to eat up the budgets of aspiring middle-class Americans.

LIHEAP funds can also serve as an economic stimulus in a weak economy. The program can help low-income households avoid cutting back their spending on other goods in order to afford home energy costs. In this way, necessary consumer spending can be maintained, helping to jumpstart an economy suffering from reduced spending.

Quotes from Experts

Beyond this Bill

Additional Resources

Low-Income Home Energy Assistance Program, from the Department of Health and Human Services

LIHEAP Issue Brief, from the National Energy Assistance Director’s Association

Campaign for Home Energy Assistance

Warm in Winter and Cool in Summer Act of 2008

hmoroz — Tue, 12 Aug 2008 13:24:51 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of households eligible to receive federal aid through LIHEAP: 38 million

Number of households receiving federal aid from LIHEAP in Fiscal Year 2007: 5.8 million

Percentage cut in LIHEAP funding proposed by President Bush’s Fiscal Year 2009 budget: 22

Percentage of annual income that households receiving LIHEAP spend on home energy bills: 15

Percentage of annual home heating oil costs covered by LIHEAP grants in 2003: 36.7

Percentage of annual home heating oil costs covered by LIHEAP grants in 2008: 23.1

Percentage of LIHEAP households reporting an annual income at or below $20,000 in 2005: 77

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Low-Income Home Energy Assistance Program, from the Department of Health and Human Services

LIHEAP Issue Brief, from the National Energy Assistance Director’s Association

Campaign for Home Energy Assistance

Amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2008

hmoroz — Fri, 16 May 2008 18:23:04 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Approximate total award that service members can currently receive toward their education, in dollars: 39,600

Average total charges, including tuition and fees and room and board, for four years at an in-state public college or university in 2007, in dollars: 54,356

Estimated percentage of the unemployed who will be unemployed for longer than six months by the end of 2009, according to the Economic Policy Institute: 20.8

Number of states with an unemployment rate greater than 6.0% as of April 2008, including Washington D.C.: 5

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits, in dollars: 1.64

Unemployment rate in Michigan in April 2008: 6.9%

Minimum estimated cost of the Iraq War paid by Michigan as of May 2008, in dollars: 13 billion

Estimated 10-year cost of extending unemployment insurance benefits, in dollars: 11.1 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The American economy remains at risk of recession and the employment picture is dim. In the first four months of 2008, the American economy lost 260,000 jobs and 400,000 workers were classified as “discouraged,” wanting work but believing that no jobs were available for them. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit during the economic downturn. Moreover, the unemployed are most likely to spend their unemployment benefits immediately, providing an economic jolt that will enhance the stimulus generated by the tax rebates sent out earlier this year. Indeed, extension of unemployment benefits provides $1.64 in stimulus for every dollar spent, making the policy one of the most effective stimulus measures.

The “New GI Bill” measures are also important. Our nation owes those young people who have volunteered to fight for the United States a fair opportunity to enter the middle class. After World War II, the education and other benefits of the GI Bill allowed unprecedented numbers of returning soldiers to access a middle-class standard of living, but today’s GI Bill, intended for peacetime, does not provide adequate benefits. This amendment would change that. Veterans of the Iraq and Afghanistan Wars face not only the challenges of readjustment to civilian life, frequently complicated by injury or mental illness, but the rising cost of higher education impacting middle-class Americans across the United States. The current GI bill covers only 60-70% of the cost of tuition at a four-year public university and less than two years at a private college. The Amendment to the supplemental appropriations bill would permit the equivalent of full scholarships to public institutions of higher learning to any service member who completed three years of service.

Imposing a moratorium on Administration-proposed Medicaid regulations will ensure continued health care access for aspiring middle-class beneficiaries and prevent a devastating loss of funding to states, public hospitals, and local schools already struggling during the economic downturn.

The provisions that increase accountability and transparency in federal contracting are welcome, but are not as comprehensive as those included in the Accountability in Contracting Act, passed by the House last year.

The Senate version contains welcome funding for programs that benefit aspiring middle-class and middle-class Americans.

Quotes from Experts

Beyond this Bill

Additional Resources

"Making the Case - Again - for Economic Rebound," from the Economic Policy Institute

Unemployment Insurance and the Stimulus Debate, from the Center for Budget and Policy Priorities

"A New GI Bill," from the Iraq and Afghanistan Veterans of America

Amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2008

hmoroz — Fri, 16 May 2008 18:23:04 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Approximate total award that service members can currently receive toward their education, in dollars: 39,600

Average total charges, including tuition and fees and room and board, for four years at an in-state public college or university in 2007, in dollars: 54,356

Estimated percentage of the unemployed who will be unemployed for longer than six months by the end of 2009, according to the Economic Policy Institute: 20.8

Number of states with an unemployment rate greater than 6.0% as of April 2008, including Washington D.C.: 5

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits, in dollars: 1.64

Unemployment rate in Michigan in April 2008: 6.9%

Minimum estimated cost of the Iraq War paid by Michigan as of May 2008, in dollars: 13 billion

Estimated 10-year cost of extending unemployment insurance benefits, in dollars: 11.1 billion

Overview/Summary

Middle Class Position Analysis

The Senate version contains welcome funding for programs that benefit aspiring middle-class and middle-class Americans.

Quotes from Experts

Beyond this Bill

Additional Resources

"Making the Case - Again - for Economic Rebound," from the Economic Policy Institute

Unemployment Insurance and the Stimulus Debate, from the Center for Budget and Policy Priorities

"A New GI Bill," from the Iraq and Afghanistan Veterans of America

Economic Stimulus Act of 2008

hmoroz — Thu, 07 Feb 2008 17:35:58 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of senior citizens who would receive tax rebates under this bill but not the House stimulus bill, according to the Senate Majority Leader: 21.5 million

Approximate number of workers nationwide projected to run out of unemployment benefits before finding work in the first six months of 2008 unless benefits are extended: 1.3 million

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits: $1.64

Amount of stimulus produced for every $1 in tax cuts targeted to low-income households: $1.19

Amount of stimulus produced for every $1 in tax cuts provided through a business investment write off policy: $0.24

Number of different stimulus policies implemented under President Bush that were more effective per public dollar than business investment incentives, according to an Economy.com study: 7

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. There is increasing evidence that the economy faces a high risk of recession which could throw millions of middle-class Americans out of work, reduce income and health insurance coverage, and increase poverty. A smart economic stimulus plan could prevent the downturn or soften its effects, but not just any stimulus package will do. To be effective, an economic stimulus package must direct money to those who will spend it quickly, boosting consumer demand and prompting increased production and economic growth. This Senate bill provides even more effective stimulus than the House legislation because the tax rebates are even more closely targeted to cash-strapped middle-class and aspiring middle-class Americans, who are more likely than wealthier people to spend the money they receive immediately, rather than saving it. The inclusion of seniors living on Social Security and veterans living on disability benefits is important for the same reason: not only is it an issue of basic fairness to include these groups but, because they are likely to spend the money quickly, their inclusion compounds the stimulative impact.

The extension of unemployment benefits and the expansion of funding for low-income heating assistance are extremely positive additions to the bill. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit by an economic downturn while also providing the most cost-effective boost to the economy. Unemployment is already on the rise and it takes longer to find work during an economic downturn when jobs are scarce. People who are out of work tend to spend nearly all of the money they receive in government benefits very quickly, so unemployment benefits provide the quick jolt to consumer spending that the economy needs. What’s more, extending unemployment benefits is one of the most effective stimulus measures yet conceived, providing $1.64 in stimulus for every dollar spent. Meanwhile home heating assistance eases the burden on current and aspiring middle-class families trying to pay high energy bills, freeing up cash that can be spent on other necessities.

The renewable energy tax incentives in the bill are not likely to be effective as short-term economic stimulus, but do represent an important investment in the nation’s energy future. Meanwhile, the business tax cuts, a product of negotiation between the Bush Administration and Congress, are less positive for the middle class because they provide little stimulative effect but deprive the public of significant revenue and increase deficits. Offering tax incentives for business investment frequently fails to generate substantial economic growth because many businesses use the tax cuts for investments they planned to undertake anyway, costing the public lost revenue but creating no additional economic activity. Another drawback is that it takes considerable time for businesses to make new investments and for investments to result in increased employment or purchasing. Yet to be most effective, economic stimulus should have a rapid impact on the economy. Finally, the Center on Budget and Policy Priorities points out that business incentives harm state budgets, since state and federal tax codes are linked. Many states are already facing a revenue crunch due to the economic downturn and, unlike the federal government, cannot run budget deficits. The result could be cuts in state and local services that middle-class Americans rely on, from education to road maintenance to public safety.

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Finance Committee Measure More Effective As Stimulus Than House Bill, Despite Some Problems,” from the Center for Budget and Policy Priorities

“Strategy for Economic Rebound: Smart Stimulus to Counteract the Economic Slowdown,” from the Economic Policy Institute

“Options for Responding to Short-Term Economic Weakness,” from the Congressional Budget Office

Economic Stimulus Act of 2008

hmoroz — Thu, 07 Feb 2008 17:35:58 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of senior citizens who would receive tax rebates under this bill but not the House stimulus bill, according to the Senate Majority Leader: 21.5 million

Approximate number of workers nationwide projected to run out of unemployment benefits before finding work in the first six months of 2008 unless benefits are extended: 1.3 million

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits: $1.64

Amount of stimulus produced for every $1 in tax cuts targeted to low-income households: $1.19

Amount of stimulus produced for every $1 in tax cuts provided through a business investment write off policy: $0.24

Number of different stimulus policies implemented under President Bush that were more effective per public dollar than business investment incentives, according to an Economy.com study: 7

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Finance Committee Measure More Effective As Stimulus Than House Bill, Despite Some Problems,” from the Center for Budget and Policy Priorities

“Strategy for Economic Rebound: Smart Stimulus to Counteract the Economic Slowdown,” from the Economic Policy Institute

“Options for Responding to Short-Term Economic Weakness,” from the Congressional Budget Office

Heating fuel

American Recovery and Reinvestment Act of 2009 - House Version

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

American Recovery and Reinvestment Act of 2009 - House Version

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Comprehensive American Energy Security and Consumer Protection Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Comprehensive American Energy Security and Consumer Protection Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Warm in Winter and Cool in Summer Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Warm in Winter and Cool in Summer Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2008