Tax Day is like #Christmas when #WorkingTaxCredits Help People in Poverty

Today is a big day in Congress for working families in poverty! Congressional leaders in the House of Representatives voted on a major tax package that could prevent 16 million people from falling into or deeper into poverty. U.S. Representatives voted on making permanent the expiring provisions of the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). YOU can help by calling your senators to ask them to support it as well!

I'll be honest. When I first heard about the Earned Income Tax Credit, I wasn't too inspired to take action on it even though it was supported by a couple of my favorite anti-poverty advocacy groups, Bread for the World and RESULTS. I didn't rally behind it right away because I didn't know what it really meant to an individual. Even though I believed in the theory, I didn't really understand what a tax credit could mean for a family on the edge until I met Maxine Thomas at a RESULTS regional conference. 

Maxine lives in Indianapolis where she is a volunteer with RESULTS. She's a mother of five who works full time. She's also a member of the RESULTS “Experts on Poverty” program, a group of volunteers who speak with legislators about their firsthand experiences with poverty. She talked to us about what a little extra money at tax time means to her children. I heard her story verbally, but this is an excerpt from her comments from an article in The Hill. 

"Just as I excitedly await the holiday season, there is another time of year that I look forward to: tax time. Tax season has become like another celebration for my family because of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).

I work full time, but I still find myself in the rut of not being able to afford the costs of everyday life. As the saying goes, I have to rob Peter to pay Paul. It is my reality. How do I decide which bill to prioritize when they are all important? A roof over our heads, electricity, heat, and water — these are all essential. 

Throughout the year, I’ve learned to make payment arrangements to prevent my utilities from being disconnected. I've learned how to stretch a dollar bill by counting out 100 pennies so that I never forget the importance of every single cent. It’s not easy, but the EITC and CTC provide us with the crucial support we need to get by. Every penny counts.

Every year at tax time, my husband and I can catch up on paying bills and feel free from those worries when we take our kids to the mall and let them choose a new pair of shoes. I’m able to breathe a deep sigh of relief knowing that I can finally replace worn-out clothing and make sure they have what they need. There is nothing quite like watching the joy on my kids’ faces as they run and play in a new pair of shoes they were able to pick out themselves. It’s a wonderful feeling for all of us."

My daughter's birthday boots

I thought about my own daughter who asked for a pair of boots for her birthday. I waffled, thinking that she wanted some pair of fashion boots she might have seen on a friend at school, but she led me to the shoe department at Target and showed me a pair of very practical brown boots. The desires of Maxine's kids are not any different than my girl's. Our kids are not fancy or spoiled. They just want shoes that fit and that they can pick out all by themselves. A simple pair of shoes gives kids a sense of self-worth and pride. For moms like Maxine, the tax credits are the thing that makes it possible to provide this basic thing for children.

The EITC is a refundable federal income tax credit for low-income working individuals and families. The EITC is designed to "make work pay" by supplementing low-wage work with additional income. The intention is to move a family with a full-time, low-income working wage to living above the poverty line. The goal is to benefit both the worker and any children and dependents that may rely on their limited income. For critics who complain about "poor people" being lazy, this anti-poverty tool is perfect because it rewards people who work! According to 2014 U.S. Census Bureau data, the Earned Income Tax Credit and the Child Tax Credit lifted 9.8 million Americans out of poverty. 

These tax credits help so many people make ends meet, but important improvements are due to expire in 2017. If Congress does nothing, 50 million people will lose part or all of their tax credits. About 16 million people, including 8 million children, will fall into poverty or deeper into poverty. If Congress does not act to make these provisions permanent, it will have an impact on families like Maxine's.

Don't let your senators give up this chance to make current EITC and CTC benefits permanent. Key negotiations are taking place today and ALL members of Congress, regardless of their party, need to hear this message! Take a moment to reach out to your senators using this link from Bread for the World. Urge Congress to make the expiring EITC and CTC provisions permanent before leaving for Christmas so that kids in poverty might have their "Christmas" at tax time.

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P.S. I am happy to add to this post to report that the EITC and CTC tax credits were indeed made permanent on December 18, 2015. Congrats to all the volunteer advocates and staff at RESULTS and Bread for the World who worked so hard on this in the last years!

World Food Prize winner David Beckmann speaks in Chicago

Last night, I took advantage of a great opportunity to see and hear David Beckmann speak in Chicago. Rev. Beckmann is the president of Bread for the World- a Christian anti-hunger advocacy group – as well as this year’s World Food Prize winner. He spoke at the beautiful Fourth Presbyterian Church on Walnut downtown..a beautiful venue I’ve always wanted to take a peek into. It was a great chance to gather with other poverty fighters and hear reflections from someone who’s been doing this at least 4 times as long as I have.

Overall, Beckmann gives us a hopeful message. In this time of recession and frustration, he put into perspective how far we have come in fighting poverty around the world. Here are some highlights from his talk.

Reflections on Mozambique: In his travels to Mozambique he went to a village where he was greeted warmly by 50 people singing praises to God. This was a village where people raised only cassava on their small plots and ate the gooey food from it to survive. The village had no cars and only bikes. It was clear that they lived in extreme poverty, but not clear how any foreign aid had provided help. One of his colleagues asked them “How have they improved their lives in the last years?” The answers were highly significant: We have peace. We have a school now and even the AIDS orphans go to primary school. People with AIDS have access to retroviral medicines. We have information about AIDS and how to prevent it, no longer assuming it was a cause of witchcraft. Beckmann was struck by the reach of the US government to strongly impact their daily lives and by the work of the people at the local level & Mozambique government. Mostly, he was profoundly encouraged by the progress there, which in fact can be repeated many other places.

World progress against poverty: 26,000 kids die EVERY day from preventable causes, ½ of those from hunger related causes. But in 1960, 55000 kids died each day. This is remarkable progress made just in the last 2-3 decades. He sees this as evidence of God moving in our time. A God who liberates people in a great exodus from poverty. This is happening NOW.

“Give-a-damn”: Our progress has been sporadic. We did cut global poverty in ½ around the Johnson-Nixon eras. In the 1990’s it was cut by ¼. But it was not sustained progress. The difference between the times when we progressed and when we did not was “Give-a-damn.” We haven’t had a presided since Johnson that made poverty reduction a priortity.

Why politics and policy?: Why do we have to use the government instead of charitable food banks? Beckmann says you can’t food-bank your way to the end of poverty. We tried that. Food banks are a good thing and almost every church and synagogue has food collection for the hungry. But we are still hungry as a people. All our efforts result in food banking results in $5 billion worth of food for people per year. The Earned Income Tax Credit and the Child Tax Credit (credits for low-income Americans) are worth more than twice as much as all the food banking done in a year.

Tax Credits: All the national talk and debate is about tax credits for the wealthy, but there are two credits for the working poor that may expire at the end of the year. The Earned Income Tax Credit should be a no-brainier. Conservatives like it because it rewards work. The more people work, the more they get. It is one of the biggest anti-poverty programs the US has today. If this reauthorization for EITC and the Child Tax Credit is not approved, then 1 million more kids will be pushed into poverty.

Biblical Examples of Policy change: Jesus cared about the effect of policies and law. He resisted laws that marginalized people, like the Sabbath law that prevented healing. St. Paul used his Roman citizenship for the purposes of God. Moses went to Pharaoh to change slavery.

Consequences of Inaction: 1 in 4 American kids live in a household that runs out of food. Permanent damage is being done to these kids that they (and we) will see the effects of for the next 50-60 years.

What can we do today?: It is time to call the faithful off the couch. The chances of getting things done are actually better than they have been. This is what we can do today, especially with the election right around the corner
1) Drive someone to the polls who couldn’t normally get there
2) Pick a candidate good for poor people and send them $50
3) Join Bread for the World and get engaged in citizenship on behalf of people in poverty. It’s not easy, you’ll have to use your head AND your heart.

Successes of Bread for the World:
1) In the last 10 years, we’ve tripled the development assistance to poor countries. The benefits are most clearly seen in Africa where 17 countries have cut poverty by 1/3. The work was done by Africans, but when they were organized and ready, we have the money available to help them
2) Foreign aid reform: Bread has been working on foreign aid reform for a few years pushing for effectiveness, responsibility, coordination, etc. When Obama took office, the administration was clear with Bread that it was not a priority and they couldn’t take time for it. So, Bread and its allies went to Congress with a foreign aid reform bill, which passed the Senate foreign relations committee. At that point, the administration took notice and said “Wait, give us a chance to do this.” And three weeks ago, Obama announced a clear, coherent policy of foreign aid. It’s a GOOD plan incorporating Bread’s ideas and some of the administration’s own.
3) Sustaining WIC programs to provide food for pregnant women and infants. Beckmann shared a touching personal story of finding out how Bread’s fight to sustain these programs when they were under attack during Reagan’s administration helped his own family. Long after that fight was over and won, he discovered that one of his adopted sons was born of a mother who struggled in poverty and was able to care for herself during pregnancy only because of these programs that Bread had fought for. His son is bright and strong, but may not have been if the mother had no access to government assistance.

Beckmann’s talk was inspiring and moving. To hear more about his account of how Christians are called to change the politics of hunger, pick up his book (available now on Amazon.com) “Exodus from Hunger” and if you are so moved, go to www.bread.com to join Bread for the World

Virtual Rally for Low-Income Tax Credits

Join the NCTC Virtual Rally for Low-income Tax Credits!

Our friends at the National Community Tax Coalition (NCTC) are trying a unique action to generate support for the EITC and CTC in Congress. They are holding a virtual rally that you can take part in. The rally simply involves a piece of paper, a camera, and your computer. Step One: Print off the “EITC and CTC Expansions Mean...” banner and fill it out. Step Two: Photograph yourself holding it up. Step Three: E-mail the photo (and the release to use it) to NCTC. They will be including the photos in state-by-state briefing books to members of Congress later this month. This is a quick, easy and creative way to show support for these important tax provisions. Also, urge your local VITA sites to participate as well. Go to NCTC’s Action page for more information on how to be a Virtual Rally Participant!


http://tax-coalition.org/take-action/advocacy-alerts/EITC%20and%20CTC%20Expansion

Call in to help the Working Poor: Bread for the World

A Call-in Action from Bread for the World:


Our country is focused on taxes this week, so let’s make sure that when Congress works on tax policy, the needs of low-income people aren’t forgotten.

ACTION NEEDED:
Please call your senators and representative at 1-800-826-3688 by 5 p.m., Friday, April 16, and urge them to protect and strengthen key tax credits — the Earned Income Tax Credit (EITC) and the Child Tax Credit.

These tax credits make a big difference for low-income workers and their families.

(Note: This toll-free number will connect you to the Capitol switchboard. Please ask for your senators’ and representative's offices so you can leave your message.)

Explain your message further by adding either or both of these points:

The EITC and CTC are critical to helping working families make ends meet and feed their families. The costs of basic needs have risen while wages have remained largely stagnant.

If Congress does not act to extend the most recent expansions to the EITC and CTC made in the American Recovery and Reinvestment Act of 2009:
-7 million low-income people could lose EITC benefits
- 6 million children will lose the CTC benefit completely, and 10 million children will receive a smaller credit
- More than 1.5 million people -- including nearly 800,000 children -- will fall back into poverty.