Payne Strongly Opposes Budget Reconciliation Bill

Payne Strongly Opposes Budget Reconciliation Bill
November 23, 2005

Tenth District Congressman Donald M. Payne (D-NJ) expressed his disappointment and concern over the proposed cuts to vital social programming in the Republican Budget Reconciliation Bill, which was approved by the Republican-controlled Congress on November 18, 2005, by a margin of 217 - 215. Inappropriately titled, "The Deficit Reduction Act", this bill will deny children, seniors, rural Americans and hurricane victims of necessary social services.

After voting against the measure, Payne said, "Hurricane Katrina exposed a festering and often neglected wound in American society. Poverty afflicts approximately 36 million people in the United States which includes 13 million children. These staggering numbers show the importance of social programs like Medicaid, Medicare and food stamps."

While both houses of Congress must reconcile the differences between their versions of the budget savings package, it is still very evident that cuts are going to be made. The US House of Representatives aims to make cuts totaling $49.9 billion which include a $700 million slash in the food stamp program and a $4.9 billion reduction in payments to states for child support enforcement. The US Senate also passed legislation that calls for $35 billion worth of cuts in such services as Medicaid and Medicare.

"In a globalized society, America cannot afford to fall behind," Payne said. "Jobs are being lost due to outsourcing and companies' fledgling profit margins. It is necessary to seek advanced training to keep pace with the ever-changing global job market. Education is the vehicle that will allow many individuals to make that transition. However, thanks to the GOP budget cuts, the price of education will become costlier to students. Not only is the price of tuition rising but also the mounting costs of student loans are pushing some Americans out of institutions of higher learning. Under the GOP budget bill, the cuts in subsidies to student loan lenders will force $8 billion in new charges on to students and their families."

The House of Representatives is also still brazenly pursing a $56.1 billion tax cut which would include an extension of the reduced tax rate for capital gains and dividends. This is another prime example of how the GOP is obviously disconnected from the reality of class in America. By prolonging the reduction in the capital gains tax, Congress will continue to show deference to the most affluent taxpayers.

"I find it morally reprehensible that Congress is poised to cut billions of dollars in social programming while shamelessly giving the wealthiest in our country an additional boost," Representative Payne said. "America is at a crossroad. We could either continue to show favor to the wealthy few, or turn the corner and re-focus our efforts towards those who need it most."

http://www.house.gov/apps/list/press/nj10_payne/pr_051123.html