First Ladies – and How to Put Ladies First in the Budget Debates

We had the privilege of going to the White House this week to hear President Obama deliver remarks on the economy and taxes. There were lots of pretty cool parts (including a peek at the portraits of the First Ladies!), but the real highlight was the President’s speech exhorting Congress to end the Bush-era tax cuts for the richest two percent. Here’s why we think that is such a great idea:

• We can’t afford to continue tax breaks for the households who need them the least. That will cost about $1 trillion over the next ten years.
• Ending the tax cuts on income above $250,000 means that 98 percent of Americans won’t see their taxes go up.  
• Giving lavish tax cuts to the wealthiest Americans didn’t lead to strong job growth or shared prosperity, but it did increase the deficit – a lot.

We have a few thoughts on better ways to spend $1 trillion than on more tax breaks for the wealthy. We both love a good bargain, so we like options that provide a two-for-one kind of deal. That’s why we’d put a good chunk of the savings towards aid to state and local governments, which could then hire back some of the workers they’ve cut in recent years. This would get important workers, like teachers and police, back on the job and help turn around the public sector job losses that have been a serious drag on the recovery.

It would also ease some of the strain on state budgets – both through the aid and through the taxes the workers would pay – because a great way to increase revenue and help reduce the deficit is to get more people back to work. Strengthening safety net programs like SNAP and unemployment insurance for families who are still struggling would also boost the economy by putting more money in people’s pockets, which increases demand and helps create jobs.

Any of these investments would especially help women, who are more likely to rely on the safety net and for whom the public sector cuts have been particularly painful. They also offer good bang for the buck – just the kind of bargain we like.