Domestic Weekly Update April 20, 2010
New and Urgent in This Week’s Update
Latest from Washington, DC
Organizational Updates
Tell Congress Not to Leave Low-income Families Behind (April Action)Millions of Americans breathed a sigh of relief this weekend as Tax Week finally ended — that is the millions of Americans who don’t have other financial woes hanging over their heads. Many working families who benefit from the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) could soon be losing recently-enacted benefits. So for them, the sigh of relief will come when their low-paying jobs no longer keep them from putting food on the table or a roof over their heads. When it comes to the fight against poverty, a solid and equitable tax code can get the job done. As part of our Economic Opportunity for All campaign, we used the April 2010 RESULTS Domestic monthly conference call to highlight the tremendous benefits to low-income people and the American economy through the EITC and CTC. We also highlighted some of these benefits in last week’s Weekly Update. Recent changes to the EITC and CTC have expanded these benefits. Remember, essentially what the EITC and CTC do is provide tax refunds to low-income workers. The American Recovery and Reinvestment Act (ARRA) expanded these benefits. Before 2009, if two low-income workers married, they lost all or part of their EITC because their combined incomes took them above the phase-out level* for the credit, even though their respective incomes did not change. ARRA addressed this “marriage penalty” by increasing the phase-out level for married workers to allow them to earn a little more without losing their credit. ARRA also increased the EITC for larger families. Previously, families with three or more children received the same credit as those with two children. As for the Child Tax Credit, ARRA significantly expanded eligibility and benefits for low-income children and their families. In 2007, a family had to earn at least $12,050 to even claim the CTC, thus excluding the lowest-income families. In 2008, that threshold was reduced to $8,500 for one year. The ARRA law then reduced it to $3,000 for 2009 and 2010. Because of these changes, 6 million low-income children became eligible for the CTC. In addition, 20 million families got a bigger refund from their credit. For example, under current law, a family with two children working full-time at the minimum wage receives a CTC of about $1,750. If the ARRA changes expire, the same family will receive only $250 — a loss of $1,500. As a result of these ARRA changes, 7 million low-income people have benefitted and 3 million have been kept out of poverty. The ARRA provisions for both the EITC and CTC are set to expire at the end of this year. With this loss, 600,000 children risk falling back into poverty and another 4 million Americans risk falling deeper into poverty. If this weren’t bad enough, the economic spark they would have provided otherwise would fade along with their finances, hurting all Americans along the way. No one, of any income bracket, should stand by and watch our economy and thousands of families suffer when there is a practical solution available — simply make the ARRA changes permanent. Fortunately, RESULTS is not alone in the fight to expand and extend low-income tax credits. Bread for the World is currently circulating a set of principles for a more “equitable, moral tax code.” Numerous faith-based organizations and denominations have signed onto these principles. RESULTS agrees with these principles and is again pleased to be in partnership with Bread on this issue. The principles are: It should be an objective of national tax policy to:
The expiration date for the EITC and CTC expansions made in ARRA is rapidly approaching. Congress will only be in session for 18 more weeks before they are scheduled to adjourn on October 8. With many priorities crowding its schedule, it is important that we send a clear and loud message to Congress that low-income individuals and families cannot get left behind. TAKE ACTION: This being Tax Month, take the April Action. Write your representatives and senators and urge them to talk to House and Senate leaders to make the ARRA expansions of EITC and CTC permanent so that low-income Americans don’t lose their benefits at the end of this year. Be sure to highlight the impact losing these credits will have, such as the number of children who will fall into poverty and the $1,500 a minimum wage family will lose under CTC. Millions of Americans are counting on Congress to do the right thing — make tax policy work for everyone, not just those already on top. If you were not on the April 10 conference call, you can listen to a recording of the call on the RESULTS website. *Both the EITC and the CTC end once a certain income level is reached. The EITC “phases out” when a worker earns a certain income, i.e. the credit amount begins to decrease until it hits $0 (at about $45,000 for a family of four). For the CTC, once a single parent earns $75,000 ($110,000 for married couples), he/she is no longer eligible for the credit. The CTC amount does not phase out like the EITC; all eligible families have the same $1,000 credit for each child under 17. Sign Your Group onto the CHN Letter in Support of the EITC and CTCA recent report came out showing that 47 percent of taxpayers in the U.S. pay no federal income tax. Anti-tax advocates are using this study to yell Foul! and claim that the wealthy in the U.S. are paying too much and the poor are getting off scot free. Let’s look at what’s really going on. Let’s be clear — everybody pays taxes. Whether you are rich or poor, you pay. While not everyone pays federal income tax, we do pay other taxes — payroll taxes for Social Security and Medicare, sales tax on the goods we buy, property taxes on our homes and cars, and other state and local taxes. In fact, a new report from Citizens for Tax Justice shows that while the lowest-income Americans do pay the smallest share of their income in federal income taxes, these people pay the largest share of their income in state and local taxes, 12.4 percent v. 8.4 percent for the top 1 percent earners. In other words, when it comes to state and local taxes, the poor get dinged the most. Fortunately, the Earned Income Tax Credit and Child Tax Credit help offset these regressive taxes by targeting low-income workers for these benefits. Thus, when a low-income family loses money because they have to pay the payroll tax or a local sales tax, they can recover some or all of that loss through the EITC and CTC. This puts much needed income back in their pockets to help them meet their basic needs. However, if the ARRA expansions of the EITC and CTC expire this year, millions of families will lose all or part of that income. Let’s see that this does not happen. TAKE ACTION: In addition to the April Action (see above), sign your local RESULTS group onto the Coalition on Human Needs letter urging Congress to preserve and build upon low income tax credits for working families and students. Debbie Weinstein of CHN talked about the letter on our April monthly conference call. Read the letter and then have someone in your RESULTS group sign on in support. For example, you can sign on as “RESULTS Des Moines” or “RESULTS Miami”. Once your group has signed on, send it to other groups or organizations in your area and urge them to sign on as well. The deadline to sign on is Friday, April 30th. After that, it will be sent to every representative and senator in Congress. Be sure to also read our April 15 RESULTS blog entry on who pays what in taxes. Urge Your Representatives to Sign onto McGovern/Emerson Child Nutrition Letter2010 is the reauthorization year for federal child nutrition programs. President Obama has made a commitment to end childhood hunger in the U.S. by 2015. Enacting a strong reauthorization of these programs, including the resources necessary to fund it, is the first step in reaching this goal. In his 2011 budget, President Obama requested $10 billion over ten years for these programs. The Senate Agriculture Committee recently passed its version of Child Nutrition Reauthorization that included $4.5 billion over ten years. However, all parties are open to finding additional money to move closer to the president’s proposal. The House Education and Labor Committee is expected to draft its proposal in the coming weeks. TAKE ACTION: Join our friends at the Food Research and Action Center (FRAC) and ask your Representatives to sign on the “Dear Colleague” letter (pdf). This letter is being circulated by Representatives Jim McGovern (D-MA-3) and Jo Ann Emerson (R-MO-8), urging Speaker Nancy Pelosi to help identify funding sources for the $1 billion per year funding increase that President Obama has proposed for Child Nutrition Reauthorization. When calling, ask for the aide who works on childhood nutrition programs and say:
You can see who has already signed on to the letter as of April 16 (pdf). The deadline get signatures is this Friday, April 23. Only Two Weeks Left for Early Registration for the RESULTS International Conference — REGISTER TODAY!Have you signed up for the 2010 RESULTS/RESULTS Educational Fund International Conference yet? We are less than two weeks away from the early registration deadline of May 3. After that, the registration fee increases so be sure to reserve your spot today. This year’s conference is June 20–22 at the Washington Marriott Hotel at Metro Center in Washington, DC, and promises to be a very special conference. 2010 is RESULTS’ 30th Anniversary so our theme this year “Celebrating the Past, Shaping the Future — 30 years of RESULTS.” At the conference, we’ll be looking back at all the successes we accomplished over the years and looking forward to the ways we can create a world free of hunger and poverty. Already we have lined up some great speakers for the conference. Lester Brown, a world-renowned environmental activist and founder of both the Worldwatch Institute and the Earth Policy Institute, will be speaking on Monday, June 21. Also, Senate Majority Whip Dick Durbin of Illinois will be speaking at our lobby day morning reception on June 22. More great speakers and conference details will be announced soon. Please plan to join us for this exciting event this summer. To register for the 2010 conference, go to our International Conference page. We have all kinds of resources available to you, including:
REGISTER TODAY! This will be the event of the summer. Don’t miss it! Quick NewsHouse Ways and Means Chair Weighs in on 2010 Tax Legislation. Current House Ways and Means Chairman Sander Levin (D-MI-12) told the National Press Club this week that he expects Congress will let the Bush tax cuts of 2001 and 2003 for wealthy Americans expire at the end of this year, but extend the cuts for the middle class. He noted that during the last economic expansion of 2001–2007, the wealthiest one percent of Americans received two-thirds of the increased income during, while middle class wages stagnated. He said he also expects the estate tax, which is currently under repeal but returns in 2011, will also be dealt with sometime this year. The House Ways and Means Committee has jurisdiction over tax policy. AnnouncementsRESULTS/REF Board Nominations Now Open. The term of one of RESULTS/RESULTS Educational Fund Grassroots Board Members expires in September, 2010. Therefore, we are taking nominations for a Grassroots Board Member (3 year term). Active RESULTS volunteers can nominate other active volunteers for this position. Nominees who accept being placed on the ballot will be asked to furnish a brief biography. Balloting will be held beginning in June at the International Conference and continue until August 1. Please forward names and phone numbers of any nominees to Carly Hicks at cfhicks@results.org by May 17. Pro-bono Grant Writer Wanted. In our effort to maintain and expand RESULTS’ important domestic anti-poverty advocacy, we are looking to strengthen and grow our funding base. As such, we are looking at foundations and grants as possible funding sources. Because many times grant proposals must meet certain formats and criteria, we are looking for someone who could donate time to work with the domestic staff on this process. If you have experience in writing grants and/or would like to participate in this effort, we would welcome your help. Please contact Domestic Outreach Organizer Jos Linn for more information at jlinn@results.org or (515) 288-3622. Join Call with Marianne Williamson this Sunday. Join RESULTS Board member Marianne Williamson for a profound discussion about spirituality and microcredit, as a follow up to the Microcredit Conference last week in Kenya. Marianne just returned from the Africa-Middle East Regional Summit in Nairobi, Kenya, and will lead a conversation alongside other women from the Sister Giant conference who also attended the Summit. Come, be inspired by the stories, and learn about steps you can take to advocate for microcredit. Sunday, April 25, 9:00 pm ET, (712) 432-3100, passcode 761262. Please Submit Your Group Planning Forms. Please complete your Group Planning Form and e-mail, mail or fax a copy to Meredith Dodson at the RESULTS DC office. Upcoming Events(Click to see a complete calendar) April 21 and May 5: RESULTS/Friends of Marianne Williamson training calls, 10:00 pm ET, (712) 432-3100, passcode 761262. These calls are designed to introduce RESULTS to attendees of last month’s Sister Giant Conference in Los Angeles and other friends of RESULTS Board member Marianne Williamson. Note that the April 7 call was postponed due to many people being in Kenya for the Microcredit Summit (call dates also include March 10, March 24; you can listen to recordings of these calls on our For New Activists page). To attend the call, RSVP to Meredith Dodson. April 25: Microcredit Summit call with Marianne Williamson. 9:00 pm ET (712) 432-3100, passcode 761262. April–May: New Activist Orientation. 9:00 pm ET. Four sessions: April 5, April 19, May 3, May 17. Call (712) 432-3100, passcode 761262. This is for people new to RESULTS as an introduction to our organization and our work. Contact Lisa Marchal to sign up and for more information. April 27: Puget Sound fundraising event, 7:00 pm PT. Contact Melessa Rogers for details; (206) 618-1742, melessarogers@yahoo.com. May 23: Kitsap, WA, group fundraising luncheon, 1:00 pm PT. Contact Lene Hajek for details; (235) 857-5234, lnybyh@yahoo.com. June 20–22: RESULTS/RESULTS Educational Fund International Conference, Washington Marriott Hotel, Washington, DC. Register online TODAY! RESULTS Contact InformationMain Office: (p) (202) 783-7100, (f) (202) 783-2818, 750 First Street NE, Suite 1040, Washington DC 20002. Domestic Legislative and Grassroots Support Staff: Meredith Dodson, (202) 783-7100, x.116 (dodson@results.org); Jos Linn, (515) 288-3622 (jlinn@results.org). The RESULTS Domestic Update is sent out every Tuesday over e-mail to RESULTS volunteers and allies all over the country. The purpose of these updates is to inform and activate RESULTS activists to take action on our domestic campaigns. |