Groundwork Collaborative Sounds Alarm on Debt Limit Deal

May 31, 2023

ICYMI: Groundwork Collaborative Sounds Alarm on Debt Limit Deal Giving Ultra-Wealthy and Big Corporations a Free Pass

As Congress considers the announced debt limit deal, Groundwork Collaborative Executive Director Lindsay Owens has been sounding the alarm about the harmful provisions included. From spending caps to work requirements and hampering the IRS’ ability to go after wealthy tax cheats, Owens was quoted in the New York Times and appeared on Democracy Now to talk about how this deal gives the rich and wealthy corporations a free pass while workers and families pick up the tab.

The New York Times [5/27/23]

“Lindsay Owens, the executive director of the liberal Groundwork Collaborative in Washington, criticized the deal for forcing budget cuts in domestic programs — and in particular, for reducing enforcement money for the I.R.S.

“‘Conceding to Republican demands to hamstring the I.R.S.’s ability to go after wealthy tax evaders is a losing proposition for Democrats,’ she said. ‘It undermines an important policy initiative, drains a good source of revenue and requires the caucus to vote down a policy that is incredibly popular with the public.’”

The New York Times [5/29/23]

“Still, the spending reductions from the deal will affect nondefense discretionary programs, like Head Start preschool, and the people they serve. New work requirements could choke off food and other assistance to vulnerable Americans. Many progressive Democrats warned this week that those effects will amount to their own sort of economic damage.

“‘After inflation eats its share, flat funding will result in fewer households accessing rental assistance, fewer kids in Head Start and fewer services for seniors,’ said Lindsay Owens, the executive director of the liberal Groundwork Collaborative in Washington.”

Democracy Now [5/30/23]

“…it’s really important to know that given the high inflation that Americans are experiencing right now – flat funding isn’t so flat. It’s actually an inflation-adjusted cut which means that we will not be able to offer the same amount of services we did last year after inflation takes its share…

“…Congress tucked in a variety of other pretty harmful proposals including the Mountain Valley pipeline being green lit, including bringing student loan payments back on line beginning in September…

“If the Supreme Court knocks down the Biden administration’s effort to offer broad-based student loan forgiveness, as early as September 1st, Americans will have to start paying those student loans again.

“So there are a number of problematic provisions that Congress tucked into this proposal that they’ll be voting on later this week that…really set us back in terms of the economic health of this country.”