Prosperity Now Newsletter: Tax Day Can Be a Step Toward Stability

,

From Our President & CEO

Dear Friends,

May is Asian American and Pacific Islander Heritage Month. The contributions of the AAPI community to our society and our economy are integral to who we are as a country, and we at Prosperity Now are proud to celebrate this diverse and vibrant community. We also recognize that the last year has been traumatic for AAPI communities across our nation and around the world, and we stand in solidarity in the continued fight against anti-Asian violence and rhetoric. This community is essential to our neighborhoods, businesses and workplaces, and we will continue to speak up on their behalf in defense of tolerance, justice and equality.

May also marks another important date—Tax Day (May 17)! We know how critical tax time is for low-and-moderate income communities, and that tax refunds can pave the way for financial stability and security. As we inch closer to the 17th and consider our pathway beyond, we will continue to champion efforts to turn the tax code “right-side up” through permanent expansion of the EITC/CTC and call for Congress to fully fund VITA in FY2022.

We are also excited about the recent progress we’ve seen on initiating Baby Bonds programs and the national attention these ideas are getting from a number of key stakeholders. We know that Baby Bonds are one of the most promising solutions to closing the wealth divide, and Prosperity Now is excited to continue advocating for federal and state-wide efforts to implement these programs.

Finally—Prosperity Now continues to grow and hire! Please visit our Careers page to learn more about our open positions. We encourage you to share widely and apply if you’re a good fit for any of the roles listed!  

In solidarity,

Gary

Spotlight

This Tax Season is Marked with Opportunity to Turn the Tax Code Right-Side Up

Community tax preparers across the country rang in the new year with great news: Congress funded the Volunteer Income Tax Assistance (VITA) Program at $30 million, the maximum federal funding allowed! Since then, the Biden Administration has taken steps that recognize the power of tax credits, and a fairer tax code, in helping families lift out of poverty. At Prosperity Now, we know that VITA programs are integral because they allow low- and moderate-income families maximize their tax refund and access critical tax credits such as the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). But it will take all of us working together, with our collective voice, to keep these impactful programs and policies strong.

Here are two quick actions you can take now with our easy-to-use Advocacy Center:

With just a few days left to file 2020 taxes, it is imperative that we fully utilize every available opportunity to create lasting change and a fairer tax code that works for everyone.

come dream. come build reimagines VITA in a Virtual World

come dream. come build (cdcb) has long been a community fixture in Brownsville, TX, the surrounding counties and the neighborhoods known as Colonias. Despite the challenges posed by persistent poverty rates and a broken immigration system that directly impacts this border community cdcb has built a package of healthy financial options (and a policy agenda) that has led to real change in Brownsville and the surrounding rural area. Because their predominately limited English-speaking community has few transportation options and limited access to technology, cdcb has made it a point to bring their services right to the people, often by providing pop-up VITA sites in churches and other services in the Colonias . But, like most organizations this past year, cdcb was compelled to shift to a 100% virtual service delivery model by the stay-at-home and social distancing orders placed to help curb the COVID-19 pandemic. Prosperity Now staff spoke to Crystal Lasoya, cdcb’s Financial Capability Program Associate, about the work she did to reimagine VITA services so they could continue to serve Brownsville and the surrounding communities. 

Crystal, a former cdcb Board Member, was asked to join the staff a few years ago, and the 2019 filing season was her first time running the VITA program. In preparation for the 2020 filing season, pre-pandemic, Crystal was charged with finding more cost-effective ways to run the program. Previously, cdcb paid their staff overtime to file tax returns, which became costly. But Crystal was determined to find additional volunteers instead, and she did, bringing on about 17; a few were retired from financial careers. Crystal found it necessary to reimagine a whole new virtual VITA program because of the pandemic. Crystal’s objective was to make sure that moving forward in this new world, her clients’ information would be safe and secure. First, she found safe and affordable digital document-sharing software, like Hightail and Docusign. Second, to inspire trust, she decided that only volunteers who had been with the program for three or more years would be allowed to continue as Virtual VITA volunteers working remotely. Unfortunately, this meant that only three   volunteers would continue, and they were quite hesitant about working remotely. But with resolve and true VITA volunteer dedication, they made it work and became stars.

In addition to the safety and security of client documents, the VITA program needed the technology necessary for volunteers to work remotely. cdcb’s laptops were outdated and unavailable after other staff took them home to work remotely. This is why cdcb applied to Prosperity Now’s Virtual VITA Technology Fund, made possible with generous support from the Citi Foundation, in June 2020. cdcb was awarded a grant that allowed them to upgrade their technology for staff and volunteers, enabling the purchase of laptops, portable monitors, tablets, printers and more. The new technology allowed cdcb to file more than 40 returns after the mass VITA site closures in 2020, for a total of 518 in that filing season. According to Crystal, that amounted to around 40 families being served who otherwise would not have been. They were able to receive refunds, credits and stimulus checks as a result. This year, cdcb is partnering with Code for America, using the GetYourRefund platform that virtually connects tax filers to VITA sites, to serve even more people in a virtual world. So far, cdcb has filed about 200 returns this filing season, nearly half of which are for new clients. While this is lower than the number of returns they usually prepare in-person, Crystal again knows these are 200 people who would otherwise not have access to VITA this year without the support of Code for America, Prosperity Now and their partnership with the local United Way of Southern Cameron County.

The success of cdcb’s virtual VITA program is largely because of Crystal’s passion for Brownsville and her determination to serve her community. She draws on recollections of her own experiences and financial mistakes as she pursues her work. Being from the region, Crystal cares about its reputation and wants to help her community grow financially. As Crystal has said, just because we come from a region of persistent poverty doesn’t mean the region has to stay that way.

Resources From Across the Community

The Economic Reality of the Asian American Pacific Islander Community is Marked by Diversity and Inequality, Not Universal Success | National CAPACD

This brief from National CAPACD dispels myths formed by aggregated income, education, wealth and employment data on the AAPI community.

Housing is Infrastructure; Opportunity Must Be its Foundation | Prosperity Now

In this blog, Prosperity Now outlines the housing components of President Biden’s infrastructure plan and how it meets the goals of the Fair Housing Act.

Biden’s Jobs Plan Promises Big Investment in Entrepreneurs and Small Businesses | Prosperity Now

In this blog, Prosperity Now policy experts explore President Biden’s proposed supports for small businesses and entrepreneurs in the American Jobs Plan.

Innovations in Financial Capability: Culturally Responsive & Multigenerational Wealth Building Practices in Asian Pacific Islander (API) Communities | National CAPACD

National CAPACD shares the innovative multigenerational and culturally responsive approaches their member organizations have when it comes to financial capability services.

3 Principles for an Antiracist, Equitable State Response to COVID-19 – and a Stronger Recovery | Center on Budget and Policy Priorities

The Center on Budget and Policy Priorities shares three principles for an equitable COVID-19 recovery, including targeting those most in need because of the pandemic and the ensuing economic crises.

Thriving After the Pandemic: Helping Chicago’s Black and Brown Communities Come Back Stronger | New America

In this report from New America and Chicago Community Trust, experts learn it will take years for Black and Brown families to recover from the pandemic and provide recommendations for leaders, policymakers and philanthropists.

Measuring the Financial Well-Being of Hispanics: 2018 Financial Well-Being Score Benchmarks | Consumer Financial Protection Bureau

The CFPB shares financial well-being score patterns for Hispanic adults as well as implications for organizations planning to use the benchmarks.

Newly Launched Community Navigator Program Could Change the Game for Small Business | Prosperity Now

This blog highlights the Community Navigator Pilot Program which could help underserved small businesses stay afloat during the pandemic by creating robust networks that connect resource providers. The program was informed by ideas shared by our President and CEO, Gary Cunningham.

Policy Updates

Universal Bank Accounts Necessary for Families to Bank on Child Tax Credit

The monthly Child Tax Credit payments authorized by the American Rescue Plan will greatly benefit working families—if they can access the money quickly and safely. In the op-ed Universal bank accounts necessary for families to bank on Child Tax Credit,  Prosperity Now’s Myrto Karaflos and Aaron Klein, Senior Fellow in Economic Studies at the Brookings Institution, argue that universal accounts can help get the tax credit payments to the families that need them most. The cost of basic banking deters many individuals, who are disproportionately people of color, from opening an account, while millions of others rely on high-cost alternatives, like payday loans and check cashers. Mandating that banks and credit unions offer low-cost accounts can help increase financial access, while also eliminating fees and delays in accessing government payments. 



Prosperity Now Experts in the Media

CNBC: Most Americans have just a few days left to file 2020 taxes. Here’s what to know, May 9, featuring Rebecca Thompson, Prosperity Now

MarketWatch: Biden administration wants to give the IRS authority to regulate the ‘Wild West’ of paid tax preparers, April 30, featuring Rebecca Thompson, Prosperity Now

Forbes: Surprising New Retirement Confidence Survey Finds Retirees Say: What Pandemic?, April 22, featuring Lillian Singh, Prosperity Now

Atlanta-Journal Constitution: After pandemic lifts, some predict unequal economic rebound, April 9, featuring Guillermo Cantor, Prosperity Now

Events & Opportunities

2020 Tax Season Debrief | Prosperity Now | June 1, 2021

Emerge Financial Health | Financial Health Network | June 8-10 & 23, 2021

Save the Date: Camp Prosperity Webinar Series | Prosperity Now | June 29, July 13 & 17

In Case You Missed It

Banking for the People: Ideas to Create an Equitable Bank System 

Last month, we published a blog titled Banking for the People, sharing insights about the promise of community-owned banks and public banking to make the bank system more equal and humane. To highlight the importance of these concepts, and the experts who are working hard to make them reality, we published a series of explanatory videos:

Elizabeth Escobar from Express Credit Union explains how community banks are designed to serve low-income people and are responsive to specific needs.


Dr. Amara Enyia from The Movement for Black Lives and The Public Banking Institute explains how public banks are suited to respond to the needs of working-class people and the poor:



Finally, we provide a simple summary of the concepts explored in Banking for the People.  



We're Hiring! 

Prosperity Now is currently hiring for multiple roles, including Associate Director of Applied Research, Digital Communications Associate, Director of Marketing and Campaigns, and Multimedia Associate. Please visit prosperitynow.org/careers to see all available positions and learn more! 

Authors
Related Content