News Release

* Bush’s Housing Policies * Budget * Kerry’s Corporate Tax Cut


President Bush is speaking about housing today in New Mexico. Norton is president of the Housing Preservation Project. She said today: “Affordable housing is very much an issue here in New Mexico. Bush is touting this ‘American Dream Down Payment Act.’ But at the same time, he is proposing a budget that is cutting housing assistance. The administration is pushing for significant cuts in the Section 8 voucher program which provides for subsidies for low-income rents in private housing.”
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SHEILA CROWLEY, [via Kim Schaffer]
President of the National Low Income Housing Coalition, Crowley said today: “While President Bush plans to travel to New Mexico and Arizona this week to tout his record on housing and homeownership, a complete look at the President’s housing initiatives shows a history of disregard for the housing situations of working families. In his 2005 budget, the President has proposed cutting billions of dollars that currently go towards helping families afford rental housing, which could mean 250,000 families in 2005 and as many as 600,000 families by 2009 could lose their affordable housing…. While the President’s Zero Down Payment Initiative is expected to help 150,000 families a year move into homeownership, it appears that what those families will save in down payment, they will make up for in increased premiums over the life of their mortgage. The premiums are expected to generate $184 million in revenues that will be used to reduce the deficit, created in large measure by tax cuts for wealthy elites.”
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Irons is a senior economic analyst and Taylor is senior budget policy analyst with OMB Watch. Taylor said today: “The House budget resolution that just passed is focused on cutting spending that benefits ordinary Americans to balance continued irresponsible tax cuts. Short-term federal budget deficits over the next five years pale in comparison to the long-term structural deficits, which, without changes, will be unsustainable….. The problem is one of revenue and an inequitable tax system that does not provide adequate funding for the programs and services that government is expected to provide….”
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Professor emeritus of economics at Bryn Mawr College and author of the book Accumulation and Power: An Economic History of the United States, Du Boff said today: “The idea of reducing corporate income taxes by five percent, as John Kerry is reported to be proposing today, is a bad idea under any circumstances — corporate tax payments have fallen below 8 percent of all federal tax revenues from 13 percent in 1980 and 23 percent in 1960…. Kerry says that he will move to cut down outsourcing by ‘eliminating tax loopholes that push jobs overseas.’ While outsourcing clearly is a source of job loss … it is by no means the biggest source. The main reason for the loss of 3 million jobs in the private sector of the economy over the past three years is the slow growth of the American economy coupled with rising productivity that allows employers to squeeze out more and more work from their existing employees rather than hire new ones. Add to that an ineffective — and perverse — fiscal policy in the form of repeated tax cuts for the rich, and we have the foolproof formula for a very bad labor market….”
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For more information, contact at the Institute for Public Accuracy
Sam Husseini, (202) 347-0020