Category Archives: Taxes

NETWORK Urges House to Vote No on Tax and Oversight Package

NETWORK Urges House to Vote No on Tax and Oversight Package

Laura Peralta-Schulte
November 29, 2018

Today, NETWORK sent the following letter to all members of the House regarding the Tax and Oversight Package that may be voted on as early as today. We oppose the package because it adds over $55 billion in debt and fails to make our tax code more just. Read the text of the letter below:

Dear Representative:

NETWORK Lobby for Catholic Social Justice was founded by Catholic Sisters over 40 years ago and has 100,000 activists around the country.  We writes today in strong opposition to the newly released partisan Tax and Oversight Package scheduled to be taken up on the House floor as early as today.  The bill, unfortunately, mirrors many of problems found in the Tax Cuts and Jobs Law:  it was created in secret, it is loaded with benefits for corporations and wealthy individuals, and it adds over $55 billion in debt. We urge you to oppose this bill.

This fall, NETWORK’s “Nuns on the Bus” campaign toured 21 states over the course of 27 days to educate voters about the problems with the TCJA.  In state after state, we heard stories from people who are struggling and concerned about the viability of Medicare, Social Security and other vital programs.  Working people know the tax law rewarded the wealthy and the well-connected who are already not paying their fair share.  We should not be exacerbating that mistake.

Rather than giving more benefits to the extremely wealthy, Congress should be repealing its 2017 tax breaks for the wealthy and corporations in order to protect Social Security, Medicare and Medicaid, and to generate enough revenue to make new investments in helping working families like expanding working family tax credits, creating affordable housing and green-energy jobs and providing healthcare for all.

Now is the time to stop business as usual in Washington.  Americans don’t want to see an end-of-year Christmas tree of gifts for all sorts of wealthy special interests.  It is time for Congress to put the interest of the common good over those of the wealthy few.  We urge you to vote no on the Tax and Oversight bill.

Sincerely,

Laura Peralta-Schulte,
Senior Government Relations Advocate

Remarks from Nuns on the Bus in South Bend

Nuns on the Bus in South Bend

Jessica Brock
October 19, 2018

The following remarks were delivered by Jessia Brock, attorney, at the Nuns on the Bus Rally in South Bend.

Good afternoon.   Your presence here is so important.  Thank you for being here.  Your voice needs to be heard.  And your vote is your voice.

My name is Jessica Brock.  I am an attorney here in South Bend, and my law practice has primarily served people living below the federal poverty line.  Most of my clients rely on income from SSI or Social Security Disability.  They rely on Medicare or Medicaid for healthcare coverage.  And they rely on other human needs programs like housing vouchers and food stamps in order to make ends meet, put food on their tables, and keep their families safe. I see on a daily basis how these programs make the difference, quite literally, between life and death.  One unexpected and expensive life event  – like the illness and death of a loved one or flooding like we experienced in February – can put a family barely making ends meet in serious financial trouble, and it is often difficult if not impossible to recover from such a setback.

In South Bend, almost 1/5 of the population lives below the federal poverty line.  That means there’s no wiggle room in the household budget – certainly no money for big, unexpected expenses.  The poverty rate here for whites is about 17%, for people of color as a whole it’s about 33%.  For African Americans in South Bend it’s about 42%.  Not only do we have income inequality.  We have racial inequality.

Republicans passed an immoral tax law in 2017, which prioritizes tax cuts for the highest income brackets and biggest businesses on the dime of basic human needs.  In 2017, the federal deficit went up 17%, and Republicans are blaming this on Social Security, Medicare, and Medicaid.  The truth is the immoral tax law is to blame for the deficit increase as well as increased government spending approved by the Republican-controlled Congress.  We do not have reasonable revenue for responsible programs.

People here are already struggling to meet basic needs.

  • There are women, survivors of domestic violence, in South Bend who are unable to afford to change the locks on their homes in order to protect themselves and their children from their abusers.
  • There are older adults in South Bend who cannot afford to pay for their burial.  They may have a family burial plot, but they can’t afford to pay for the cremation/burial and transportation to be buried with their loved ones.
  • We lost my father unexpectedly to brain cancer this April.  A simple funeral can easily cost $10,000.  All of the expenses were due upfront.  That’s a financial burden many cannot handle.

The truth is that Social Security and Medicare are paid for through separate payroll taxes.  They do not add to the national debt.  In fact, Social Security has a $2.5 trillion surplus right now.  The sad truth is that we are using the Social Security trust funds to finance our overspending on programming that does not meet basic human needs like being safe in our homes, having food to put on the table, healthcare, and dying with dignity.  We are robbing human needs programs in order to cut taxes for the rich and for big business.

There seems to be little we can agree on these days, as our leaders have played on our fears in an effort to divide us.  But there is much we have in common.  We all want to be safe.  We all need to eat and sleep.  We all want to be healthy, and we will all get sick.  We will all encounter unexpected, traumatic, and expensive life events that can quickly change our financial stability.

At times, it can seem like there is nothing we can do.  But that’s not true.  We can vote.  It’s free.  It doesn’t matter who you are, each vote counts the same.  Your vote is your voice.

Vote!  If you think that the government shouldn’t take from the poor to benefit the rich.  Vote!  If you want reasonable revenue for responsible programs.  Vote!

It’s We The People.  It’s us.  And we have a job to do.  No one can do it for us.   Let’s get out and vote!

View more photos from this event here.

Studying the Damaging Effects of the Republican Tax Law

Studying the Damaging Effects of the Republican Tax Law

Laura Peralta-Schulte, NETWORK Senior Government Relations Associate
October 17, 2018

On December 22, 2017 President Trump signed the Tax Cuts and Jobs Act into law. The new law significantly rewrites the tax code to make wide-reaching, regressive changes to our federal tax system, largely benefiting corporations and the highest-income households with little relief for middle and lower-income households. The law also permanently eliminates the individual mandate of the Affordable Care Act, hurting the viability of our healthcare system. These major changes did not receive a public hearing in either chamber before passing on a nearly party-line vote. Republican Congressional leadership put the bill on a fast track to President Trump’s desk from day one.

NETWORK opposed the Tax Cuts and Jobs Act because it violated basic principles of tax fairness and encouraged even greater economic inequality. The bill violated NETWORK’s Principles of Tax Justice, which state that any changes to our tax policy must: make the tax code more progressive, raise revenue to support programs that invest in people and communities, and decrease inequality. The law fails to do these, in fact, it adds $1.9 trillion to the federal deficit over ten years, draining the treasury of valuable revenue for human needs programs.

Since passing the law, President Trump and House Republicans, like Speaker Paul Ryan, have used the increase in the deficit as justification for proposing deep cuts to programs including Medicaid, Medicare, the Affordable Care Act, Social Security, and the Supplemental Nutrition Assistance Program. It is clear that the Trump Administration and the Congressional Republicans would like to cut funding for these programs to pay for their tax law.

Despite increased annual corporate profits this year, corporate tax revenue is more than $100 billion lower than last year because of the law’s corporate tax rate cut. These corporate tax cuts are not trickling down. Nine months since the law went into effect, working families have not received the economic benefit they were promised. 4.4% of workers have gotten a pay hike or bonus connected to the tax law— only about 7 million out of 155 million— and most increases were a one-time bonus, not a permanent wage increase.

The provisions of the Tax Cuts and Jobs Act put our country on a dangerous path to higher economic inequality and decreased investment in our communities. We must put an end to these policies that enrich those who are already thriving and make changes to help those struggling while generating reasonable revenue for responsible programs.

 

Congressional Votes on the Tax Cuts and Jobs Act by State

See how your Members of Congress voted on last year’s tax law here and hold them accountable for their votes!

The Consequences of the 2017 Tax Law

The Consequences of the 2017 Tax Law

Tralonne Shorter and Ashley Wilson
Published in the October issue of Connection Magazine

In February, touting the benefits of the Republican Tax Law, Paul Ryan tweeted “A secretary at a public high school in Lancaster, PA said she was pleasantly surprised when her pay went up $1.50 a week… she said [that] will more than cover her Costco membership for the year” with a link to an article “Workers are starting to notice larger paychecks following tax overhaul.”  Assuming this teacher gets paid over the course of 52 weeks – which isn’t a given in many teaching contracts – this unnamed teacher would receive $78/year from the tax bill. A basic Costco membership is $60.

In comparison, a Republican Member of Congress, Rep. Vern Buchanan (Fla.) bought a yacht valued between $1 and $5 million on the same day the House passed the Tax Cuts and Jobs Act.  The Center for American Progress estimates that just through one provision of the tax bill, Rep. Buchanan will receive a $2.1 million tax cut.

So, the so-called “benefit” from the Tax Cuts and Jobs Act isn’t exactly distributed with justice in mind. The authors of this law – and those who voted for it – made their decisions based on how they (and their wealthy donors) would personally benefit. And, they attempted to appease their constituents by making a false claim that everyone would receive great benefit.

Nuns on the Bus is on the road this fall – before the midterm elections – because the Republican Tax Law robs our nation of reasonable revenue for responsible programs. The law increases our federal deficit by giving handouts to the wealthiest individuals and corporations in our nation and claiming that everyone gets a tax break.

In fact, we know that not only do we not all benefit – the Republican Tax Law actively undermines the common good. Instead of shaping inclusive tax policies that promote equitable growth, the Republican Tax Law also exacerbates the racial wealth gap. Going forward, as we begin to feel the effects of the tax law and Congress debates additional cuts to federal programs, Congressional leadership will disinvest in the common good, especially programs that support individuals and communities of color.

Now, Republican leadership is again using their flawed argument to justify outrageous federal budget cuts to health, housing, labor and other human needs programs. These cuts are an attack on the common good of our nation! We know that when people at the economic margins of society do better, we all do better. To make the situation worse: while claiming we must cut human needs programs because of lack of revenue, President Trump continues to push for increased spending on border wall, Pentagon spending, and other programs that we don’t need.

When it comes to human needs programs, Republican leadership thinks our national purse is empty, but no fiscal constraints exist when immigration or war get considered. The vicious cycle of tax cuts for the wealthiest, spending cuts for human needs programs, and increased funds for border security and war have gotten us into a bit of a mess.

Explaining the Republican Budget Cuts

President Trump’s FY 2019 budget proposal called for at least $57 billion in cuts to non-defense programs. Those cuts to programs that contribute to the common good are counter to the bipartisan spending caps agreement that Congress reached just a short time before President Trump’s proposal. Further, President Trump is also pushing Congress to cut $3 trillion over 10 years to entitlement programs like the Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), Medicare, Medicaid, and other critical programs.

Here’s how just some of the funds compare between President Trump’s most recent budget proposal and President Obama’s final budget proposal:

 

Program President Obama
(FY 2017)		 President Trump
(FY 2019)		 Net Change
Federal Supplemental Educational Opportunity Grants (FSEOG) $733 Million $0 -$733 Million
Federal Work Study $983 Million $200 Million -$783 Million
Department of Education $69.4 Billion $63.2 Billion -$6.2 Billion
Housing and Urban Development $48.9 Billion $39.2 Billion -$9.7 Billion
Centers for Medicare and Medicaid (Program Operations) $2.9 Billion $2.4 Billion -$500 Million
Low Income Home Energy Assistance Program (LIHEAP) $3 Billion $0 -$3 Billion
Supplemental Nutrition Assistance Program (SNAP) $82 Billion $73 Billion -$9 Billion

 

Let’s make sure we’re clear on this: These cuts President Trump is proposing aren’t “savings.” Instead, they are cuts to essential programs that will put already vulnerable individuals at greater risk. This threatens the stability and wellbeing of our communities.

In President Trump’s first year, Republican leadership showed us their priorities. Instead of working to improve the health of our nation, they attempted to repeal the Affordable Care Act (numerous times) and finally dismantled the individual mandate. Instead of working to reduce poverty, they proposed budget cuts that would risk the livelihoods of some of our nation’s most vulnerable people. And, instead of using principles of tax justice to make sure everyone pays their fair share, they rammed through legislation that benefits the wealthiest in our nation.

This is the opposite of mend the gaps – they make them wider. The faithful way forward is to promote tax justice, promote reasonable revenue for responsible programs, and work for the common good.

As you cast your vote this November, ask yourself, “Which candidate will help mend the gaps in economic inequality? Which candidate demonstrates concerns for the common good? Which candidate will undo the damage of the 2017 tax law?” and vote for that person.

Travel Log: Las Vegas Canvassing

Travel Log: Las Vegas Canvassing

Sister Quincy Howard, OP
October 10, 2018

We started our second day in Vegas after a late night of heavy drinking and gambling (I’m joking, of course).  We were warmly greeted by the Culinary Workers Union 226 at their headquarters, joining a large room crowded with culinary workers diligently prepping canvassing materials.  Their morning briefing before heading out was raucous and full of energy—a great primer for a quick rally with the nuns to follow.  Sister Bernadine Karge, OP and Sister Simone were joined by two female union members to address a crowd of 150 or so unionized workers.  They spoke powerfully about human dignity, the need to respect workers, especially women (54% of their union members are female) and the importance of communal action and unity to bring about change.  The idea of solidarity and shared responsibility is especially crucial for a union that consists of 50,000 members from 173 countries that speak 40 languages.

Since over half (55%) of Union 226 members are Latinx, Sister Chris Machado, SSS and I had the opportunity to canvass with two Spanish-speaking women from Mexico and Cuba.  Most of the union workers had taken a political leave of absence—one of the contract provisions won through years of hard-fought negotiations.  Maria and Martha were both proud to take a leave—along with a pay cut—in order to put in their share of hours canvassing.  They want to promote candidates who will, in-turn, support workers’ rights and strengthened collective bargaining.

During their familiar routine going door-to-door, they explained that the names and addresses were of residents who did not, or rarely, voted in past elections.  As non-partisan participants, for myself and my fellow Nuns on the Bus, our primary push was to stress the importance of voting on November the 6th—that their vote and who we elect makes a difference. Most knocks had no response, so we left the materials at the door and Maria and Martha would return to follow-up.  Each time Maria saw that a resident was a registered Republican she would make the Sign of the Cross before approaching the door—but she did it anyway.  Needless to say, they are sometimes turned away with harsh words, but these workers are a persevering bunch.  They are driven for the sake of their families and inspired by their fellow union members who they consider their sisters and brothers.

 

To view more photos of the canvassing event, visit our Flickr album.

Blog: Harmful Attacks on the EPA

Harmful Attacks on the EPA

By Eric Gibble
October 24, 2011

The unfounded attacks on the EPA ignore the lives saved and productivity created by the agency.

Tax rates are now at the lowest levels since the 1950’s. Yet the rich have not created jobs with their massive tax breaks. Millions are still unemployed. Millions more struggle to make ends meet in the face of higher health care costs, rising mortagae payments, growing food prices, and increased energy fees. We now see the theory of the “trickle-down” economy has fundamentally failed the American people.

Now that tax rates cannot be blamed, where will opponents target their anti-government rhetoric?

The Environmental Protection Agency has now become that scapegoat. It is being labeled as a job-killing machine by the politicians, ruthlessly going out of its way to impose regulations that have destoryed the American economy. Or so, that’s what we have been made to believe. In the 2011 budget, the House was able to reduce the EPA by 16% from 2010 spending, bringing it to $8.7 billion.

On Sept. 23, the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act of 2011 passed the House. This act would repeal or block new and pending clean air protections, from standards that would curb mercury emissions from power plants to limits on pollution that travels across state lines, and remove proposed ozone and greenhouse gas standards. This is a direct attack on the productivity and lives on the American people.

They have ignored the fact that by 2020, the Clean Air Act would prevent:

  • 230,000 premature deaths
  • 2.4 million asthma attacks
  • 200,000 heart attacks
  • 5.4 million lost school days.

The Political Economy Research Institute at the University of Massachusetts Amherst concluded that “new air pollution rules proposed for the electric power sector by the Environmental Protection Agency will provide long-term economic benefits across much of the United States in the form of highly skilled, well paying jobs through infrastructure investment.”

According to the nonpartisan Office of Management and Budget, investments could create an estimated $4 to $8 in economic benefits for every $1 spent on compliance with the Clean Air Act since 1970. New enforcements would create 1.46 million jobs between 2010 and 2015 due to installing new pollution controls with skilled, high-paying workers.

These irrational attacks are senseless. The air we breathe is being sacrificed in the name of big business with little proof that deregulation, like taxes, actually brings job creation.

Blog: Blast from the Past: The Reality of Tax Breaks

Blog: Blast from the Past: The Reality of Tax Breaks

Eric Gibble
Oct 24, 2011

As those in Congress continue to debate solutions to stabilize our economy, we must be cognizant and reflective about past policies that have failed the American people. After all, those who forget history are doomed to repeat it. One of the solutions on the table is to cut taxes for the super-rich in order to spur job creation.

Our government is cutting essential services utilized by the people to put themselves back on their feet and lead a healthy, stable life. We should be providing for those who have too little. Yet our nation is putting more in the pockets of those who have more than enough. This idea goes against our core American, and Catholic, values.

We know that tax cuts have done little to help the middle class and the most vulnerable in our society. But that wasn’t what we were hearing in 2001 when the Heritage Foundation was supporting the first round of tax cuts. According to the conservative think tank’s 2001 “The Economic Impact of President Bush’s Tax Relief Plan” report:

  • They said President Bush’s tax plan would boost economic activity and over 1.6 million would be working at the end of FY 2011.
    What really happened?  In 2001, 6.8 million Americans, at a rate of 4.7%, were unemployed. Currently, there are 14 million Americans unemployed at a rate of 9.1% according to the U.S. Bureau of Labor Statistics. The numbers are clear – 1.6 million jobs were not created.
  • They said the plan would reduce excess tax revenue and effectively pay off the publicly held federal debt by FY 2010.
    What really happened? Our public debt now exceeds $14 trillion, and the Bush tax cuts of 2001 and 2003 account for 13% of it. By 2019, the tax cuts are projected to account for 50% of our debt according to the Center on Budget and Policy Priorities the tax cuts are projected to account for 50% of our debt according to the Center on Budget and Policy Priorities.
  • They said $568 billion in new revenue would be created.
    What really happened? The Congressional Budget Office expects revenue to be just 14.8 percent of G.D.P. this year. Revenue has averaged 18 percent of G.D.P. since 1970 and a little more than that in the postwar era.

While we experienced events like the Sept. 11 attacks and the 2008 financial meltdown that had a devastating effect, the Bush tax cuts certainly did not relieve the resulting economic downturn. For the sake of maintaining our social safety net programs like SNAP that deliver critical aid so that those in poverty can feed themselves, we must let the flawed Bush-era tax cuts expire next year.