AFGE Carolyn Federoff, VP AFGE Local 3258 and MA AFL-CIO

www.AFGE.org

Carolyn Federoff, VP AFGE Local 3258 and MA AFL-CIO

entitlement. An absolute right to a (usu. monetary) benefit, such as social security, granted immediately upon meeting a legal requirement.

Black’s Law Dictionary, Seventh Edition, 1999

Tax Entitlements cost almost $1.1 trillion in 2011

Center on Budget and Policy Priorities, “Achieving Further Deficit Reduction Solely Through Spending Cuts . . .,” Robert Greenstein, January 9, 2013, see Figure 1.

Which kids receive quality child care?

100% of eligible families receive child care assistance through tax credits18% of eligible families receive child care assistance through vouchers or placement

Tax Entitlements cost almost $1.1 trillion in 2011

Center on Budget and Policy Priorities, “Achieving Further Deficit Reduction Solely Through Spending Cuts . . .,” Robert Greenstein, January 9, 2013, see Figure 1.

In 2010, middle-income households received a proportionate share of Social Security, Medicare

and Medicaid

Center on Budget and Policy Priorities, “Achieving Further Deficit Reduction Solely Through Spending Cuts . . .,” Robert Greenstein, January 9, 2013, see Figure 3.

Wealthy households receive a disproportionate share of tax entitlements

Center on Budget and Policy Priorities, “Achieving Further Deficit Reduction Solely Through Spending Cuts . . .,” Robert Greenstein, January 9, 2013, see Figure 3.

Housing Subsidies through the tax code

Center on Budget and Policy Priorities, “Reforming Tax Expenditures Can Reduce Deficits While Making the Tax Code More Efficient and Equitable,” Chuck Marr and Brian Highsmith, April 15, 2011, based on example at page 5.

Tax credits more equitable than deductions or exclusions

Marginal Tax Bracket

By reducing income taxes, a $10,000 mortgage interest deduction provides a housing subsidy of:

While a $2000 tax credit provides a level housing subsidy for all tax brackets:

15% $1500 $2000

25% $2500 $2000

35% $3500 $2000

Center on Budget and Policy Priorities, “Reforming Tax Expenditures Can Reduce Deficits While Making the Tax Code More Efficient and Equitable,” Chuck Marr and Brian Highsmith, April 15, 2011, from Table 1.

Tax Entitlements cost almost $1.1 trillion in 2011

Center on Budget and Policy Priorities, “Achieving Further Deficit Reduction Solely Through Spending Cuts . . .,” Robert Greenstein, January 9, 2013, see Figure 1.