Asset Building Policy
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Transcript of Asset Building Policy
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ASSET BUILDING POLICY
Jeremie GreerDirector of Government Affairs Corporation for Enterprise Development April 24th, 2013
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About CFED
CFED (Corporation for Enterprise
Development) empowers
individuals and families to build
and preserve assets by
advancing policies and strategies
that help them go to college, buy
a home, start a business, and
save for now and for the future.
Identify Good Ideas: CFED’s researchfinds ideas with potential for making theeconomy work for everyone, particularlythose on the margins.
Develop Partnerships: CFED works in partnership with diverse organizations across the country to promote lasting change.
Bring Ideas to Scale: CFED brings together community practice, public policy and private markets to achieve the greatest economic impact.
We combine the vision of a think tank with real-world experience to:
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Agenda
1. Define the problem
2. Political/Budget Environment
3. CFED Policy Priorities
4. “All Politics is Local”
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Driving policy change for more than 10 years
2005
2002
2009
20122007
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Families are living on the edge
Liquid Asset Poorlack savings to cover basic
expenses for three months if job loss, a medical
emergency, or other crisis leads to a loss of stable
income
26% of households earning between
$55,000 and $90,000 are liquid asset poor
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Savings and wealth gap for households of color
Households of Color
White Households
63%
35%
Liquid Asset Poverty
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Liquid Asset Poverty in Oregon
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Political Environment
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Drivers of the Deficit
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Drivers of the Deficit
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Sequestration
On March 1, the president issued a sequestration order requiring $85 billion to be cut from the federal budget
Cut to nondefense spending of $42.7 billion Reduced from $54.7 billion, or to 5.0 percent
Medicare cuts ($11.1 billion) comprise about 26 percent of the total nondefense cut
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Agency Effects of Sequestration
Department/Agency Percent Cut
Total Cut (dollars in millions)
Health and Human Services 5.0% $15,877
Agriculture 5.0% $1,944
Labor 5.1% $3,149
Housing and Urban Development 5.0% $3,013
Education 5.0% $2,479
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CFED Policy Priorities
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Budget
Program FY 2012 Appropriations
FY 2014 President’s Budget Request
Asset for Opportunity $19.9 Million $19.4 Million
LIHEAP $3.5 Million $2.8 Million
Community Services Block Grant
$681 Million $350 Million
CDFI Fund $222 Million $225 Million
WIA Adult Employment and Training
$771Million $791 Million
CDBG $2.9 Million $2.8 Million
GEAR UP $304 Million $302 Million
Rural Development 502 Direct Loans
$900 Million $360 Million
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Savings Priorities
Reauthorize and reform the Assets for Independence Act Create new child savings opportunities through the federal
government Integrate child savings into existing federal funding streams Reform asset limits in SNAP, TANF, and SSI Expand tax time savings opportunities—protect the EITC,
CTC, and paper savings bonds Expanding access to retirement savings for low and
moderate income individuals Expand and protect tax incentives for savings for low
and moderate income individuals
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Financial Inclusion Priorities
Integrate asset building into existing federal funding streams
Enhance accessibility to financial products for the un/under banked (e.g.Bank-on USA, Savings Bonds, etc…)
Curb predatory lending practices Enhance access and impact of financial
capability and education initiatives
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Homeownership Priorities
Take the Manufactured Housing agenda to the next level of advocacy
Explore CFED’s role in the larger housing finance reform discussion
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Entrepreneurship Priorities
Expand access to capital for microenterprises and self-employed individuals
Identify and address barriers to success for special populations of entrepreneurs—immigrants, racial/ethnic minorities, women, low-income and first-time entrepreneurs
Eliminate barriers to microenterprise growth throughout the business lifecycle
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Assets for Independence
Low Hanging Fruit Aligning eligibility with
other Fed. Programs Diversifying eligible
matching sources. Expand eligible uses
(i.e. children’s savings) Revise first-time home
buyer to include women escaping domestic violence.
Burden Too Heavy $75 Million (current
appropriation is 20 million)
Higher match rate Series of smaller
changes that make bill longer
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Asset Limits Reform
.
Lift Asset Limits in Public Benefit ProgramsAsset limits are a relic of entitlement policies that, in some cases, no longer exist. Personal savings and assets are precisely the kind of resources that allows families to move off public benefit programs.
36 states have eliminated Asset Limits in SNAP
6 states have eliminated asset limits in TANF
24 states have eliminated Asset Limits in Medicaid, all must do so by 2014
Note: Ryan Budget seeks to eliminate state flexibility on SNAP asset limits.
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The US Tax Code is central in helping individuals grow assets and accumulate wealth Mortgage Interest Deduction Special Rate for Capital Gains Credits for Children and
Earned Income Business related credits and
deductions
Comprehensive Tax Reform
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$1–5,000
$5,000–10,000
$10,000–15,000
$15,000–20,000
$20,000–25,000
$25,000–30,000
$30,000–35,000
$35,000–40,000
$40,000–50,000
$50,000–60,000
$60,000–70,000
$70,000–80,000
$80,000–90,000
$90,000–100,000
$100,000–150,000
$150,000–200,000
$200,000–500,000
$500,000–1,000,000
$1,000,000 or more
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$
—
$ 0
$
4
$ 1
2 $
26
$ 4
7 $
81
$ 1
28
$ 2
71
$ 5
09
$ 7
02
$ 9
70
$ 1
,219
$
1,6
04
$ 2
,864
$
4,8
89
$ 7
,908
$
16,
489
$ 9
5,82
0 FY2009 Distribution of Asset Building Subsidies,Average Benefit by Income Bracket
Annual Income
Annu
al S
ubsid
y
Source: CFED and Annie E. Casey Foundation. 2010. Upside Down: The $400 Billion Federal Asset Budget
Distribution of federal asset-building tax subsidies
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$1–5,000
$5,000–10,000
$10,000–15,000
$15,000–20,000
$20,000–25,000
$25,000–30,000
$30,000–35,000
$35,000–40,000
$40,000–50,000
$50,000–60,000
$60,000–70,000
$70,000–80,000
$80,000–90,000
$90,000–100,000
$100,000–150,000
$150,000–200,000
$200,000–500,000
$500,000–1,000,000
$1,000,000 or more
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$
—
$ 0
$
4
$ 1
2 $
26
$ 4
7 $
81
$ 1
28
$ 2
71
$ 5
09
$ 7
02
$ 9
70
$ 1
,219
$
1,6
04
$ 2
,864
$
4,8
89
$ 7
,908
$
16,
489
$ 9
5,82
0 FY2009 Distribution of Asset Building Subsidies,Average Benefit by Income Bracket
Annual Income
Annu
al S
ubsid
y $26
Source: CFED and Annie E. Casey Foundation. 2010. Upside Down: The $400 Billion Federal Asset Budget
Distribution of federal asset-building tax subsidies
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Recommendations for Comprehensive Tax Reform
.
• Continue to ensure access to the Earned Income Tax Credit and Child Tax Credit for working families
• Provide a stronger savings incentive.
Make existing Saver’s Credit Refundable Expand the Saver’s Credit to non-retirement accounts, such
as college savings or short-term savings accounts • Support Volunteer Income Tax Assistance (VITA) sites and other
free or low-cost tax preparation strategies.
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“All politics are local”Thomas Phillip “Tip” O'Neill
Former Speaker of the House of Representatives
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A&O Network
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Assets & Opportunity Network Structure
Network Steering Committee Guides direction of Network
Lead Organizations36 State Organizations and 39 Local Organizations
General Members900+ General Members representing 49 states and DC
General Members
Lead State and Local
Organizations
Network Steering
Committee
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Lead State & Local Organizations in the A&O Network
OREGON Lead State
Organization:
Lead Local
Organizations:
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Join the Assets & Opportunity Network as a General Member!
Stay informed Share your experiences Participate in intensive learning
opportunities Engage in national dialog on
asset-building solutions Access responsive technical
assistance Be eligible for event scholarships Build your communications skills
To join or learn more, go to assetsandopportunity.org/network
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Representing Oregon in Congress:Your Delegation!
Appropriators Sen. Jeff Merkley
Banking Sen. Jeff Merkley
Health and Human Services, Labor and Education Rep. Suzanna Bonamici (D-OR)
Tax Sen. Ron Wyden (D-OR) Rep. Earl Blumenauer (D-OR)
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Jeremie Greer
Director of Government Affairs
202-870-6821
www.cfed.org
www.assetsandopportunity.org
Thank You