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ENGEL ON OBAMA PROPOSED BUDGET

Washington, DC -- There is some positive news in the proposed budget from the President. Unfortunately it comes at the expense of those who need it more. The Alternative Minimum Tax reform will be extended for three years which will keep it from snaring some 30 million taxpayers at a cost of approximately $2,400 each. Pell Grants for education will be extended, but with limitations on their use. And, there is a two-year patch assuring doctors that their Medicare reimbursement rates will not be reduced.

But, nearly one million NY families receive LIHEAP funding every year. For families, during extremely cold winters and those with large snowstorms like we saw this winter, this funding is critical. Seniors should not be forced to heat their homes during single digit temperatures with money that would go for food or medical expenses.

New York families will lose nearly a quarter of a billion dollars in this proposal with more than one third them elderly, and another third disabled.

During these hard economic times the needs of families are greater than ever, and now is not the time to cut their funding for home heating.

These people are paying because the Bush tax cuts for the wealthy were extended, leaving a budget shortfall. They are also paying because of Republican demands that expenses be cut when any reputable economists will tell you that with the economy we have, government should spend money to bring the economy back because cutting expenses only keeps us in the hole.

A budget should not cut wide holes in our social safety net, and target programs which are beneficial to our middle class. I applaud the president’s call for reinstating the Bush tax cuts on the wealthy and eliminating tax breaks for Big Oil.

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