Womenstake

New Data Show Senate Must Act to Protect Jobs for Women (Not Tax Loopholes for Investment Managers)

by Joan Entmacher, Vice President for Family Economic Security,
National Women's Law Center

Today’s data on the employment situation show the urgent need for the Senate to act quickly on jobs legislation.

In May, fifteen million Americans were unemployed, including 6.8 million who have been unemployed for six months or more. The overall unemployment rate was 9.7 percent—and unemployment rates were even higher for several groups of women. Unemployment among women who head families was 11.6 percent; among Black women, 12.4 percent; and among Hispanic women, 10.3 percent.

The economy added 431,000 jobs in May—but 411,000 of those jobs were temporary Census jobs. There was a small increase in private sector employment—41,000—but in the women-dominated state and local government sector, 22,000 jobs were lost. With many states in economic crisis and Recovery Act funding set to expire, many more jobs will lost—unless Congress acts.

Congress Leaves for Memorial Day without Getting Help to Families and States in Crisis

by Joan Entmacher, Vice President for Family Economic Security,
National Women's Law Center

The House just passed a bill that’s still called “The American Jobs and Closing Tax Loopholes Act.” But, with Blue Dog Democrats threatening to join House Republicans in voting against the stronger bill we urged the House to pass at the beginning of the week, some critical provisions to protect jobs and vital services were dropped. And the Senate has left town without taking up the bill ― so unemployment insurance benefits will expire ― again.

The House bill does extend enhanced unemployment benefits for long-term jobless workers, at least through November. It also extends funding for the TANF Emergency Fund, which states are using to create jobs and help families in crisis, and provides funding for summer jobs.

But additional Medicaid assistance to states ― urgently needed to protect health care services for low-income women and their families and ease the pressure on state budgets, preserving jobs and other vital services ― was dropped. Funding to extend COBRA subsidies to help workers who lose their jobs hang on to health care coverage was eliminated.

Taxes Aren’t Just for the Little People, After All

by Reggie Oldak, Senior Counsel,
and Joan Entmacher, Vice President for Family Economic Security,
National Women's Law Center

Congress is taking aim at a major tax loophole that allows extremely wealthy investment fund managers (the top 25 hedge fund managers earned an average of over $1 billion each last year) to pay lower tax rates than teachers, nurses, and other hard-working Americans. 

The provision to increase taxes on "carried interests" is included in the American Jobs and Closing Tax Loopholes Act of 2010 (H.R. 4213), introduced jointly by acting House Ways and Means Committee Chair Sander M. Levin, D-Mich., and Senate Finance Committee Chair Max Baucus, D-Mont. yesterday. Both the House and the Senate are expected to vote on the bill next week, before they recess for Memorial Day.

Voters in Arizona Overwhelmingly Approve Tax Increase

by Joan Entmacher, Vice President for Family Economic Security,
National Women's Law Center

As pundits analyze the significance of Tuesday’s election results, there’s one outcome they shouldn’t overlook. Voters in Arizona—Arizona!—approved an increase in the sales tax to avoid deep cuts to education and other services. The measure, supported by Governor Jan Brewer (R), raises the state sales tax by one cent for the next three years.

And it wasn’t even close. According to the latest results available, with 88 percent of precincts reporting, the sales tax increase had 64 percent of the vote.

Needless to say, this probably doesn’t mean that most Arizona voters want to pay higher taxes. But faced with the choice of taxing themselves more—or making the deep cuts proposed by the legislature to education, health care, and public safety—the voters chose the tax increase. Politicians should take note.

Tell Congress to Help Families and States Now

by Joan Entmacher, Vice President for Family Economic Security,
and Emily J. Martin, Vice President,
National Women's Law Center

Congress is trying to use a bucket to stop a flood ― and it’s not working.

Over 15 million Americans are still unemployed, and nearly half have been out of work for six months or more. States have already cut health care, education, child care, domestic violence shelters, and other vital services ― and deeper cuts and major layoffs of teachers and others who provide these services are looming. At the same time, additional federal support for struggling families and states provided by the Recovery Act, including extended unemployment insurance benefits, COBRA subsidies for health insurance coverage, additional federal support for Medicaid and Temporary Assistance for Needy Families ― will soon run out.

While the economy is beginning to add jobs, it will take years to recover the millions of jobs that have been lost. Families and states have exhausted any reserves they had. Yet, Congress is stalling as the economic picture for state and local governments is worsening.

Tell Members of Congress to stop standing by while states are drowning!

Currently, Congress is considering a bill that would:

• Continue extended unemployment insurance benefits and COBRA subsidies, which will run out in weeks, to the end of 2010.
• Provide six months of additional Medicaid funding to states to protect health care services for women and their families and ease the pressure on state budgets.
• Extend the TANF emergency fund for a year to enable states to continue to create jobs and provide emergency assistance to the increased numbers of poor women and children.

These measures could be included in a bill to extend some expiring tax cuts, mostly for businesses, and to prevent cuts to physician reimbursement under Medicare. But some conservative members of Congress are objecting to including this emergency assistance in that bill.

Tell Congress to act immediately to provide help for families and states to get through this economic crisis!

Setting the Table for Tax Reform

by Reggie Oldak, Senior Counsel,
National Women's Law Center

The new, bipartisan National Commission on Fiscal Responsibility and Reform met for the first time yesterday. The Commission has until Dec. 1, 2010 to report to Congress on a plan that will balance the federal budget (excluding interest payments on the debt) by 2015 and "meaningfully improve the long-run fiscal outlook." In opening remarks, President Obama emphasized that "everything is on the table."

Just in time for dinner, the Congressional Research Service (CRS) has issued a report analyzing a very progressive source of revenue—the estate tax. The Economic Growth and Tax Relief Act of 2001, under the last Administration, provided for a gradual reduction in the estate tax and then elimination of the tax for one year. The House passed a bill last year that would have permanently extended the estate tax at 2009 levels—a complete exemption for estates valued at $3.5 million ($7 million for couples) or less, with the excess taxed at a top rate of 45 percent. A few super-wealthy families want an even bigger exemption and a lower rate. The Senate did not act to extend the estate tax last year, so there is no tax at all for 2010. In 2011, the estate tax reverts to 55 percent, with an exemption for estates valued at $1 million ($2 million for couples) . . . unless Congress reduces it again.

Making Tax Day Positive for Everyone

by Diana Miller, Intern,
National Women's Law Center

Today is everyone’s favorite day—April 15. This year on Tax Day, students and parents in 13 cities across the U.S. will work to educate taxpayers waiting in line at local post offices regarding our country’s education crisis. It’s called National “Invest in Education” Action Day, organized by the Alliance for Educational Justice (AEJ).

The idea is to encourage taxpayers to make Congress aware of the strong public support that exists for investing tax dollars in education reform so that every child has the opportunity to learn. The participating organizations are calling for more investment in public education to provide fair and equitable learning opportunities; high quality teachers, books, and technology; and college preparation curricula for all students.

Extending Unemployment Benefits: Déjà Vu All Over Again

by Emily J. Martin, Vice President, 
National Women's Law Center

Today is expected to be an important one in the Senate, as it passes “fixes” to the new health care law, thus completing its work on health care reform and crossing a major item off its to-do list in time for a recess scheduled to begin Friday and go through April 12. 

But meanwhile, once again, Congress has failed to finalize a yearlong extension of extended unemployment insurance and COBRA subsidies, meaning that once again tens of thousands of unemployed workers will lose benefits at the end of the month unless the Senate approves another short-term 30-day extension, already approved by the House. 

Tax Day is Coming – Claim Your Refund Now!

By Jessica Heaven, Fellow,
National Women’s Law Center

With only three weeks to go until the April 15 federal tax filing deadline, Vice President Biden and the Internal Revenue Service announced this week that tax refunds so far are up almost 10 percent from last year. The average refund for 2009 federal tax returns filed by March 12, 2010, is a whopping $3,036, which is $266 more than the average from this time last year.

The increase is due largely to new and improved tax credits made possible by the American Recovery and Reinvestment Act. To recap, this year an eligible family could receive:

• Up to $5,657 from the Earned Income Tax Credit,
• Up to $1,000 per child from the Child Tax Credit,
• Up to $2,100 from the Child and Dependent Care Tax Credit, and
• Up to $800 from the new Making Work Pay Credit.

Yes, Virginia, You Have an Advocate at the IRS

by Reggie Oldak, Senior Counsel,
National Women's Law Center

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose mission is to ensure that tax problems not resolved through normal channels are promptly and fairly handled. Each state has a Taxpayer Advocate to assist that state’s taxpayers.

Nina E. Olson, the National Taxpayer Advocate, heads the TAS. Yesterday, she testified before the House Ways and Means Oversight Subcommitee about problems people have in dealing with the IRS. As we approach the April 15th deadline for filing our taxes, you might not be surprised to hear that she said the current IRS telephone service is "inadequate". 

Of special note, however, is that she also said the agency is not doing enough to meet the needs of low-income taxpayers. We know that low-income taxpayers are disproportionately women. Ms. Olson pointed out that low-income taxpayers have other characteristics that not only limit their ability to earn income but also impair their ability to comply with documentation requests in tax disputes.