News
Report: Childhood hunger is growing in Suburbs
Childhood hunger has changed. Hunger is no longer strictly an urban and rural phenomenon. It affects nearly every American community. This includes communities that might otherwise think child hunger is a problem that happens ‘somewhere else.’ Our perceptions have to change -- and with our perceptions, our policies.
Fair Share Education Fund released Childhood Hunger in America’s Suburbs: The Changing Geography of Poverty, a new report detailing the changing geography of childhood hunger at a time of growing suburban poverty. View the full report, here.
The report measured the number of students newly eligible for the National School Lunch Program – a leading indicator of poverty or food insecurity – between the years 2006-2007 and 2012-2013. It found that the 2008 Great Recession made the risk of childhood hunger significantly worse.
Of students newly eligible for the National School Lunch Program, 48 percent are from the suburbs, 25 percent are from the cities, 15 percent live in rural areas and 12 percent live in small- or mid-sized towns. Of public school students now eligible for free or reduced-price lunch nationwide, nearly one-third now live in the suburbs. Nearly 6.5 million children were eligible for free or reduced-price lunch in 2012-2013, more than the number of children from rural areas and small- and mid-sized towns combined.
“Even though food insecurity in the aggregate is still greater in the cities than in the suburbs, the number of students eligible for free or reduced price lunch grew at a much faster rate in the suburbs than anywhere else,” said Gideon Weissman of the Frontier Group, who co-authored the report with Fair Share Education Fund's David Elliot. “The result is that the suburbs now look like the rest of America when it comes to issues such as hunger and poverty. Hunger and poverty in the suburbs is catching up to hunger and poverty in the cities, small- and mid-sized towns and rural areas.”
Mass. State Legislature Holds Hearing on Bill to Close Tax Loophole
On Tuesday, June 9 a public hearing was held before the Joint Committee on Revenue regarding a measure that would close the “water’s edge” loophole. This tax loophole allows companies to avoid taxes they would otherwise owe by shifting profits to offshore tax havens around the globe.
Nathan Proctor, State Director of Massachusetts Fair Share, testified before the Committee:
“Over the last year, Massachusetts Fair Share has collected more than 7,000 comments and signatures from Massachusetts residents in support of closing a loophole which allows companies to avoid taxes by stashing cash in offshore tax havens like the Cayman Islands. And in just the last 5 days I have collected an additional 1,119 new signatures from Massachusetts Residents for this hearing, which I am delivering today to support H.2477 (Rep. Cutler) and S.1524 (Sen. Montigny).”
House bill sponsor Rep. Josh Cutler (Duxbury) also testified about how he, as a small business owner, sees this as an issue about basic fairness:
“As a small business owner, I know that local businesses aren’t setting up foreign subsidiaries to skirt tax codes, they’re paying their fair share for the services we all benefit from. We think it’s time to level the playing field and help our Bay State businesses.”
Back in 2008, Massachusetts enacted combined reporting that forces multi-state companies to report on their affiliates across the country. This helped stop companies from hiding profits earned in Massachusetts in other states which don’t collect corporate income tax. But companies could still hide those profits beyond the “water’s edge” in offshore tax havens. The two bills, H.2477 and S.1524 would effectively close this loophole by requiring companies to report their offshore profits in known tax haven countries.
State Director Nathan Proctor testifies before Joint Committee on Revenue in favor of closing the “waters edge” loophole. Photo by Daniel Gutowski.
Our testimony focused on public frustration with the “water’s edge” loophole that disadvantages small business and taxpayers. It has been estimated that foregone tax revenue due to the water’s edge loophole amounts to $79 million dollars that could be used to fund public projects or decrease taxes for small businesses and property owners. We noted the many signatures that have poured in that support the two bills. His testimony concluded with a resolute call for common sense:
“As Massachusetts lawmakers, especially during the budget season, you have a lot of tough choices. This one is easy. Everyone should play by the same set of rules.”
Dierdre Cummings, Legislative Director of MASSPIRG, and Phineas Baxandall, the Senior Policy Analyst of U.S. Public Interest Research Group, also testified. Cummings argued that Oregon and Montana have passed similar resolutions that have demonstrated success without any of the “chicken little, the sky is falling” impacts some industry lobbyists are claiming will take place if this measure is passed.
Dr. Baxandall focused on some of the counterarguments to the bill. First, corporate lobby groups frequently argue that the bill would force companies to be double taxed, an argument that Baxandall said was “doubly wrong.” Currently, corporations have the option to deduct foreign taxes as well as the option to file under the worldwide corporate tax option. Another common counterargument is that closing the loophole would cause an unnecessary burden that would complicate corporate taxes, but the law would actually simplify tax accounting because companies would be required to report their profits honestly rather than spending time figuring out how to rig the system. Since the only companies that would need to change they way to report their tax returns are those large enough to operate subsidiaries across the globe, it seems hard to believe that companies with teams of lawyers and accountants that created these complex tax avoidance structures would be overburdened if we made this small change.
Eileen McAnneny, president of Massachusetts Taxpayer’s Foundation represented opposing views. McAnneny said that Oregon and Montana were poor comparisons because Massachusetts has more multinational corporations that would relocate, but the evidence shows that companies would not leave as she had feared.
Dan Bucks, Montana Director of Revenue stated in a letter to Massachusetts State Representative Jay Kaufman and Massachusetts State Senator Michael J. Rodrigues:
“Administratively, there have been no noticeable costs or challenges associated with the implementation or enforcement of the law. As Director of Revenue for eight years, I received no complaints from corporate taxpayers about the law, its implementation or its impact.”
Bucks noted that the fiscal impact of the law had been positive with additional tax revenue, increased employment, and no complaints from corporations. McAnneny also claimed that the law would force companies to pay for costly accounting to report their earnings, but these companies already have teams of accountants and lawyers that would most likely have an easier job under the new law. McAnneny’s claims largely fit in line with the counterarguments that Baxandall previously debunked, and were largely excuses for upholding a loophole that supports big business, hurts Massachusetts taxpayers and puts local businesses at a disadvantage as they aren’t hiding their money in the Cayman Islands.
From the economic analysis as well as the success of Oregon and Montana, it is clear that the law would benefit the Massachusetts public by increasing tax revenue, making the tax code more fair without negatively hurting the economy. The claims made by corporate lobbyists show a disregard for fairness as well as public interest.
If the legislation presented an unnecessary accounting or financial burden, companies in Montana and Oregon would complain or relocate. As we at Fair Share like to say, it’s a common-sense law that makes sure that everyone pays their fair share.
Head Start celebrates 50 years.
In 1965, President Lyndon B. Johnson first launched Head Start. Intended to be a cornerstone program of his War on Poverty, Johnson said, "Five- and 6-year-old children are inheritors of poverty's curse, and not its creators. Unless we act, these children will pass it on to the next generation, like a family birthmark. I believe that this is one of the constructive, and one of the most sensible, and also one of the most exciting programs that this nation has ever undertaken."
In the ensuing 50 years, more than 32 million children have benefited from Head Start. Head Start alumni have grown up and changed our country in countless ways – they’ve become teachers, mayors, Members of Congress, musicians, business owners, and everything in between. Head Start is more than just an early education classroom, it’s a social, educational and health support system that benefits the whole family.
President Obama added: "Supporting our children in their earliest years with high-quality care and education is one of the best investments we can make as a Nation -- and for 50 years, Head Start has helped to lift up millions of America's children and their families in communities across our country. The oldest and largest Federal program to deliver high-quality early learning opportunities to low-income children, Head Start was founded on the idea that every child -- no matter who they are, what they look like, or where they grow up -- deserves the chance to reach their full potential. Since 1965, it has given meaning to the simple truth that in America, where you start should not determine how far you can go."
Hillary Clinton Unveils Plan on Immigration
As immigration reform debates fizzled in Congress, Hillary Clinton laid out her committment to immigration reform that would include a path to citizenship.
“The American people support comprehensive immigration reform—not just because it is the right thing to do, but because it strengthens families, our economy, and our country. Congress must pass comprehensive immigration reform that provides a path to citizenship, treats every person with dignity, upholds the rule of law, protects our borders and national security, and brings millions of hardworking people into the formal economy," Clinton said.
"If Congress continues to refuse to act, as president I would do everything possible under the law to go even further," added Clinton, showing support for President Obama's executive actions.
Clinton said it was unrealistic to act as though all 11 million undocumented immigrants now in the U.S. could be deported. She said the idea was "beyond absurd. That's not going to happen."
You can see the speech here.
Fair Share believes it’s time to bring undocumented workers out of the shadows and allow them to join the legal, regulated workforce, with a fair shot and fair wages and the same rules as everyone else. We can fix our immigration system with a common sense, comprehensive set of reforms that ensures everyone plays by the same rules. Not only will it be more fair, it will increase investment in our economy. Learn more.
Brookings: Expanding Opportunity Through Infrastructure Jobs
In the face of dour news about stagnant wages, rising inequality, and a vanishing middle class, metropolitan areas are raising local minimum wages, experimenting with new apprenticeship programs, and considering a range of other development tools to tackle their workforce challenges. Collectively, these strategies represent crucial steps to boost incomes and improve economic mobility during the recovery. In the same way, infrastructure investment is supporting more and better jobs throughout the country, drawing from a variety of efforts across the public and private sector.
However, the federal transportation program is headed toward another financial cliff, and Washington is once again scrambling to find a patchwork solution for the crumbling roads, bridges, and facilities whose maintenance is central to economic growth. An oft-cited statistic, for instance, notes that every $1 billion in highway spending can directly and indirectly create up to 13,000 jobs a year. With continued uncertainty at the federal level, many states and localities are delaying construction projects and remain trapped in a cycle of deferred maintenance that hurts thousands of employers and workers alike.
The need to invest in U.S. infrastructure has never been clearer, making it all the more critical to take a fresh look at infrastructure’s importance to the labor market, both to drive long-lasting growth and to expand economic opportunity across the entire workforce—two elements often missing from the current narrative on infrastructure and jobs.
Video: The Grin - Exposing Anonymous Companies
Fair Share works with the FACT Coalition and Global Witness to end the use of anonymous shell companies.
"An assault on our financial security. An assault on our democracy" Fair Share critizes riders to budget bill
WASHINGTON, D.C. – Fair Share, a national grassroots advocacy group, today spoke out against riders to the congressional spending bill as “outrageous assaults on the financial security of American families and the integrity of our democracy.”
One rider would reverse crucial reforms in the Dodd-Frank Wall Street Reform and Consumer Protection Act, ultimately endangering taxpayers who would get stuck with the bailout if and when banks fail. Another could allow wealthy individuals to give as much as $1.5 million to a political party during a two-year election cycle – a 10-fold increase over current limits that Fair Share said are already “absurdly weak.”
“These riders constitute outrageous assaults on the financial security of American families and the integrity of our democracy,” said Meredith Small, Fair Share program director. “Budgets are never perfect, but this is a raw deal for the average American family. These riders have nothing to do with funding government. We call on Congress to remove these riders.”
Under the bill, banks would be permitted to continue gambling in the derivatives market under the banner of taxpayer-insured Federal Deposit Insurance Corporation (FDIC) banks. Derivatives, including a specific type referred to as “swaps,” are highly risky investments that contributed to the 2008 economic meltdown, which in turn pushed the nation into recession.
According to an analysis by Public Citizen, the rider authorizing increased donations to political parties would, depending how the Federal Election Commission interprets this change, allow an individual donor to give $777,600 per year to a national party or $1,555,200 per election cycle. A couple could give $3,110,400 to a national party in a two-year election cycle.
“The American people want Congress to address real problems,” Small said. “Allowing more big money to flood our elections is not what we had in mind. Congress should be beyond embarrassed. Congress should be ashamed.”
For more information, contact David Elliot 202-607-7036.
It's time to Promote Middle and Working Class Families
FOR IMMEDIATE RELEASE Nov. 5, 2014
CONTACT: David Elliot 202-607-7036
Nov. 5, 2014 – Fair Share released the following statement today in response to the GOP takeover of the U.S. Senate:
“Although we are disappointed with the outcome of Tuesday’s elections overall, the challenges our country faces remain unchanged. We need a Congress that will put the economic needs of middle- and working-class families first. This means supporting public education, including pre-K opportunities for more children, and ending wasteful and unfair corporate tax loopholes. These are not Democratic challenges or Republican challenges – they are American challenges. Indeed, on election day, a Wall Street Journal exit poll showed that more Americans are concerned about our economy than any other issue. Fair Share stands prepared to work with the GOP leadership to enact economic policies that are favored by a majority of Americans.”
This election cycle, Fair Share endorsed 63 candidates across the country in gubernatorial, U.S. Senate and U.S. House races. Among its endorsed candidates, Fair Share engaged in field work on behalf of Gwen Graham, who won Florida’s 2nd congressional district, defeating U.S. Rep. Steve Southerland, and on behalf of Colorado Gov. John Hickenlooper, who narrowly won re-election.
To see Fair Share’s slate of endorsed candidates, go here:
http://www.fairshareonline.org/2014-endorsements
In 2014, Fair Share is working for a fair share economy, to close corporate tax loopholes, end harmful cuts to education, expand access to pre-K to everyone, pass comprehensive immigration reform for a fair economy, and get big money out of politics. Fair Share is also conducting a national campaign to promote awareness of and end childhood hunger. Learn more at www.fairshareonline.org
Fair Share stands for an America where everyone gets their fair share, does their fair share, and pays their fair share; and where everyone plays by the same rules. Find out more at wwwfairshareonline.org.
Fair Share Applauds Obama Action on Inversions; Calls on Congress to Finish the Job
Washington, D.C. – Fair Share today applauded the Obama Administration’s plans to discourage corporations abroad to avoid U.S. taxes, but noted that only comprehensive reform in Congress will stop the damaging of America’s corporate tax base and the loss of billions of dollars that could help rebuild the middle class and put the nation’s economy back on track.
In recent weeks, Fair Share has collected more than 8,000 petition signatures calling on Congress to act and taking corporations such as Burger King to task for not meeting their very American obligation to pay their fair share of taxes. Fair Share will continue to press Congress to act to close inversions and other corporate tax loopholes when it reconvenes in November.
“Both President Obama and Treasury Secretary Jack Lew has noted that these transactions may be legal but they are wrong,” said Sean Garren, Fair Share legislative director. “These tax dodges are costing women, children and the American middle class billions of dollars in revenue we need to make our economy and our country strong again. Although the Administration’s action announced this week is a great first step, only Congress can pass the comprehensive, lasting reform we need to put a stop to this madness.”
Since January 2013, 19 corporations have announced plans to reincorporate overseas for tax purposes – 14 of them having done so this year alone. Overall, 76 companies have inverted since 1983, according to the Congressional Research Service. A flood of corporate inversions are expected to take place in the next two months alone.
“We have to act quickly and decisively to stem this tide,” Garren said. “The Obama Administration has taken a good first step. Now it’s time for Congress to finish the job.”
Fair Share stands for an America where everyone gets their fair share, does their fair share, and pays their fair share; and where everyone plays by the same rules. Find out more at www.fairshareonline.org
Koch Brothers at Work: New TV Ad Connects Money In Colorado Politics, Tax Breaks for Job Outsourcing
CONTACT: Wendy Wendlandt 213-448-3442, w2@fairshareonline.org
David Elliot, 202-607-7036
DENVER – A TV advertisement airing today points out the connection between Cory Gardner and the Koch Brothers, including Koch -funded special interest groups that have spent millions of dollars to obtain tax breaks for companies that ship good American jobs overseas.
The ad takes Gardner to task for voting for policies that encourage companies to outsource American jobs. The ad also points out that the Koch Brothers have rejected climate change science, a position which helps protect the billions of dollars they have made off of their oil company holdings. Viewers can see the ad and learn more about the Koch Brothers’ connection to Cory Gardner by visiting www.coloradofairshare.org.
Colorado Fair Share has worked for years to remove big money from politics, and has stepped up its work since the controversial U.S. Supreme Court Citizens United decision. The group in 2012 helped spearhead a petition signature drive to qualify Amendment 65 for the statewide ballot. Voters approved the amendment, which called upon Congress to overturn Citizens United, with 74 percent of the vote.
“In 2012, Charles and David Koch spent $60 million to oppose President Obama and others who don’t share their radical agenda,” said Wendy Wendlandt, acting director of Fair Share. “Now they’re spending millions to buy influence in Colorado. Why? Because they are promoting an agenda that favors special interests at the expense of all of us.”
While the U.S. economy slowly recovers from the Great Recession, some special interests, with the support of the Koch Brothers and Gardner, are using their lobbyists and campaign contributions to rig the tax system in their favor, using tax havens in foreign countries or accepting public subsidies to their already profitable businesses. Research by Citizens for Tax Justice shows that many of the nation’s “Fortune 500” companies, such as General Electric and Boeing, are paying no federal income taxes. At the same time, many of these very companies were shipping American jobs overseas.
Colorado Fair Share is part of Fair Share, which stands for an America where everyone gets their fair share, does their fair share, and pays their fair share; and where everyone plays by the same rules. Fair Share includes Arizona Fair Share, California Fair Share, Florida Citizen Action Network/Florida Fair Share, Iowa Citizen Action Network, Massachusetts Fair Share, Pennsylvania Fair Share, Progress Ohio and Virginia Fair Share.