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Congressional
Action
House
Passes Draconian Spending Cuts Bill: This
week, the House passed a spending cuts package
(H.R. 5652) which would impose immediate deep
cuts to critical domestic programs. The bill
uses the excuse of deficit reduction to impose
enormous hardships and drastic cuts on those who
can least afford them rather than closing tax
loopholes and increasing taxes on the wealthiest
Americans and large corporations. And, it shifts
the planned across-the-board cuts scheduled for
January entirely away from the Pentagon and onto
public services.
This
irresponsible budget plan would slash funding
for state and local governments, further cut
vital public services, cost millions of jobs,
and send our economy into a downward tailspin.
Just this week, the Wall Street Journal reported
that sharp cuts already instituted by state and
local governments are responsible for a full
percentage point of unemployment, causing the
rate to be 8.1% instead of 7.1%.
The package passed largely along party lines
would cut Medicaid by nearly $25 billion through
changes in the provider tax, reductions in DSH
payments to safety net hospitals, repeal of
state maintenance of effort requirements and
reductions in payments to territories.
Unemployment benefits would be cut off until
applicants are nearly broke. And, 5.5 million
low-income children whose working parents do not
have Social Security numbers would be denied the
refundable child tax credit.
The list of mean-spirited cuts goes on. H.R.
5652 would cut $33 billion from food stamps and
cut off free school meals for 300,000 children
at a time when food insecurity is peaking, yet
it preserves farm subsidies when producers are
reaping record profits. Another $79 billion
would be cut from federal employee pensions on
top of the previously enacted cuts of $75
billion.
AFSCME
strongly opposes H.R. 5652. The President has
stated that he would veto this bill, and it is
dead on arrival in the Senate. While this
package will not advance further, it is yet
another reminder of the rising stakes leading up
to critical decisions Congress must make this
fall. At the end of this year the Bush tax cuts,
funding for unemployment benefits, the
alternative minimum tax (AMT) fix, the 2%
reduction in Social Security payroll taxes and
reimbursement rates for Medicare providers will
expire. Also, FY 2013 funding will need to be
finalized, across-the-board spending cuts are
scheduled for January 2013, and the debt ceiling
will need to be raised. In order to sustain
critical public programs and promote job growth,
revenues increases are imperative. We will keep
you updated as these important issues are
addressed.
GOP
Leaders Block Vote to Prevent Doubling of
Student Loan Rates:
Coming on the heels of a House vote prior
to recess, the Senate attempted to vote on a
bill to stop the doubling of interest rates on
federally-subsidized Stafford loans from 3.4% to
6.8% before the current rate expires on July 1,
2012. Unfortunately, all Senate Republicans
blocked the vote. The Senate bill (S. 2343) is a
responsible fix to the student loan problem. It
would prevent 7.4 million students this year
from paying higher interest rates by closing a
tax loophole that only benefits wealthy
individuals seeking to dodge their tax
responsibilities. AFSCME strongly supports S.
2343. This is must-pass legislation, and we will
keep you updated on its progress.
Rebuild
America Act:
Representatives Rosa DeLauro (D-CT) and Bruce
Braley (D-IA) announced this week that they are
introducing a House version of the Rebuild
America Act (S. 2252), which Senator Tom Harkin
(D-IA) developed and introduced in the Senate in
March.
The
Rebuild America Act is a comprehensive bill
intended to strengthen and expand America's
middle class. Among its provisions are funds to
hire teachers, police, firefighters and other
local government employees. These provisions are
especially important in light of a growing
awareness that the continued hemorrhaging of
public sector jobs is holding back declines in
local unemployment rates. The Rebuild America
Act also includes funds to rebuild the nation's
roads, bridges and other infrastructure,
modernize schools, expand and improve child care
opportunities, and expand job training in
growing sectors of the economy. In addition, the
legislation includes an increase in the minimum
wage to $9.80 over three years, and strengthens
overtime protections for white collar workers.
It also would improve Social Security benefits
and strengthen the private pension system.
Finally, the Rebuild America Act restores
fairness to the tax code by including, among
other provisions, a Wall Street trading and
speculators tax, the so-called "Buffett
Rule" ensuring that the wealthiest
taxpayers pay at least as much as middle-class
families, and an increase in the capital gains
tax rate.
We
urge you to contact your Senators and
Representative and ask them to co-sponsor this
important legislation. To
call them directly (toll free), call (866)
258-3330.
House
Panel Adopts Flawed Violence Against Women Act
Reauthorization: This
week, the House Judiciary Committee passed its
version of a five-year renewal of the Violence
Against Women Act (VAWA). While the continuation
of the VAWA historically has been
uncontroversial since it was first enacted in
1994, GOP leaders on the committee added changes
that would harm immigrants while rejecting
amendments that would have strengthened
protections for lesbian, gay, bisexual and
transgender victims of abuse. The bill (H.R.
4970) passed on a largely party-line vote 17-15,
with Rep. Ted Poe (R-TX) the only GOP member
joining the Democrats in opposing it.
H.R.
4970 could go to the House floor for a vote as
early as next week. Last month, the Senate
passed its VAWA reauthorization bill (S. 1925),
which does not contain the harmful House
provisions.
Affordable
Care Act Helps Medicare Beneficiaries Save Over
$3.2 Billion: Thanks
to the Affordable Care Act (ACA), Medicare
beneficiaries saved $3.2 billion on their
prescription drugs from the enactment of the law
in 2010 through March 2012. In the first three
months of 2012 alone, nearly a quarter of a
million people saved an average of $837 on their
prescription medicines. The ACA provides a 50%
discount on brand-name prescription drugs and
this year a 14% discount on generics. In
addition, from January through March this year,
8.9 million people in traditional Medicare
received at least one preventative health
service at no cost to them. This lifesaving help
for Medicare beneficiaries would end if the
changes to Medicare proposed by House Budget
Committee Chairman Paul Ryan (R-WI), and adopted
by the House along party lines become law.
452
Million in Medicare Fraud Alleged: New
enforcement tools in the Affordable Care Act led
to a nationwide crackdown by the Medicare Fraud
Strike Force which resulted in charges against
107 individuals in seven cities for their
alleged participation in Medicare fraud schemes
involving approximately $452 million in false
billing. This coordinated enforcement effort
targeted the highest amount of false Medicare
billings in a single takedown in Strike Force
history.
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