Jobs, Taxes & Benefits

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Women: Both Sides are Talking to You about the Budget

Both Republicans and Democrats have evaluated President Bush’s budget in terms of its effect on women. (Perhaps this is because the women’s vote is essential to the 2004 election.) Predictably, Republicans argue that the 2005 fiscal budget will benefit women, while Democrats maintain that it will harm them.

Each party reads the budget through a different lens. Read on to discover each side’s point of view.

Budget delayed

Not going to file your taxes on time? You’re not alone. Congress will miss its April 15th deadline for passing the 2005 budget. But unlike overdue taxes, there’s no penalty for the House and Senate, except a little embarrassment.

Infighting among Republicans kept the budget from being completed before the April recess, but Congressional Quarterly reports that GOP budget writers plan to quickly resolve differences once the Congress reconvenes April 20, 2004.

Republicans can’t agree on whether or not to include pay-as-you-go (PAYGO) rules, which would require new tax cuts or spending to be offset by a revenue increase or spending cut. Sixty votes would be needed to bypass the rule.

Most House Republicans are against PAYGO, but some Senate Republicans think it’s a smart way to combat the deficit. Woman Senator Olympia Snowe of Maine was one of four Republicans who voted with Democrats to adopt PAYGO. Majority Leader Bill Frist (R-Tenn.) says he expects PAYGO rules to appear in some form in the final budget resolution.

How Democrats read the budget

On March 17, 2004 House Democratic Leader (a.k.a. House Whip) Nancy Pelosi outlined the ways in which Democrats see the Bush budget as detrimental to women.

Joined by other Democratic Congresswomen and women police officers and firefighters, Pelosi explained that the 2005 budget reduces funding to childcare and education and hurts first responders.

In her public letter to President Bush, Pelosi outlines Democrats’ complaints in more detail: Democrats are worried because the budget cuts funding for the Small Business Administration by $79 million. Democrats and Republicans agree that this agency helps women and minority-owned small businesses to grow and prosper.

Education is also a priority for both parties, but Democrats say that Bush has failed to fund his promises. They point out that the budget does not include $9.4 billion needed for education reforms such as reading and math programs.

Democrats also claim that the Bush budget does little to provide affordable healthcare. Both sides peg healthcare as a women’s issue, but Democrats say the millions of women and children who are uninsured do not benefit from Health Savings Accounts, which they say only helps the “healthy and wealthy."

Democrats make similar claims about the tax cuts. In her letter, Pelosi argues that the budget includes a tax cut that will drain the treasury of $1 trillion but results in only $100 in savings for most families. Democrats feel that the majority of Bush’s tax cuts aid the wealthy and do little for working families.

How Republicans read the budget

Most Republicans are in favor of the spending cuts in the fiscal 2005 budget. They feel that cutting spending on domestic programs is the best way to reduce the deficit and, like Democrats, that shrinking the deficit is essential to a strong economy.

A Republican National Committee website for women called Winning Women contends that Bush is supportive of women who own small businesses. Though the site does not respond directly to Pelosi’s complaint about cuts to the Small Business Administration, Winning Women explains that the Bush has worked to open 15 new women’s business centers during his term.

Republicans look at the budget’s approach to education from a different point of view as well. Instead of focusing on the lack in funding, Republican leadership emphasizes that No Child Left Behind is in place and gaining ground. Further, Winning Women argues that Bush’s tax cuts help women to pay for their education. The cuts increase the value and flexibility of Education IRA’s, or Education Savings Accounts. Republicans feel that savings accounts are a viable option for many women who want to improve their education. Democrats argue that women in poverty have little use for an Education Savings Account.

In general, Republicans believe that tax cuts will aid the average woman. Bush’s economic plan provides a tax credit for employers who provide childcare, a raise in the maximum Dependent Care Credit (meaning parents can deduct more of their childcare expenses), and increases the child tax credit. The Bush budget also reduces the marriage penalty, a tax cut that many Democrats support.

Who is right?

Republicans remind us that a single mom is getting a bigger refund because of the bigger child tax credit; Democrats tell us that the Bush budget cuts programs that combat violence against women. Republicans say their health and education savings accounts are the smartest way to help women with their healthcare and schooling costs; Democrats argue that mothers will be harmed by the budget cuts to Head Start, Even Start, and hearing testing for newborns. Who is right? Both? Neither?

Each party has a different approach to the different problems affecting women: education, healthcare, childcare, and jobs, just to name a few. Which approach most closely matches your beliefs and values? Are the tax cuts aiding you in your daily struggle? Would greater funding to public schools and programs be helpful? Are savings accounts a good approach to dealing with issues in healthcare and education?

Discuss these issues with other WomenMatter readers in on of our online forums. If jobs, taxes, and benefits are Life Issues for you, sign up for an e alert, and we’ll update you on this topic. And remember to register to vote and contact your representatives.

Article Posted on: 4/9/2004

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