Tag Archives: tax

Blog: Congress Takes Historic Step to Tax Stock Buybacks

Schumer uttered those words as the Senate was on the brink of passing the Inflation Reduction Act—the compromise reconciliation bill that resulted from prolonged, heated negotiations amongst Democrats.  The version that will go to President Biden includes something brand-new in U.S. economic policy: a one percent excise tax on stock buybacks, which reached an astonishing $882 billion last year.

News Release: Committee Tax Plan Falls Short of Need to Advance Racial and Economic Justice

Today, the House Ways and Means committee released its draft plan for the Build Back Better economic package. It includes many crucial spending items, and some positive tax provisions. But, overall, it fails to meet the moment. Among other things, the package leaves out revenue-raising proposals from the Biden administration that would advance racial and economic justice. We need more dramatic change to the status quo, which benefits Wall Street and the super-rich and harms the rest of us. 

Letter to Regulators: Letter to the IRS and Treasury on Tackling Systemic Tax Abuses by the Private Equity Industry

The 18 organizations urge the Internal Revenue Service (IRS) to prioritize rebuilding its auditing and enforcement capabilities in order to tackle systemic tax abuses, including in particular those by the private equity industry. The private equity industry has generated greater untaxed revenues over the past decades by structuring their funds to avoid taxes and through a strategy of misclassifying certain earnings, exploiting tax loopholes like carried interest, and utilizing complex and opaque business structures to shield earnings from IRS scrutiny. We applaud President Biden’s plans to fund the IRS and tax enforcement more robustly and believe that these needed changes are a strong argument for such additional resources.

News Release: Opportunity Zones will worsen affordable housing crisis, displace Black and Brown residents

The Opportunity Zone tax break is likely to exacerbate the affordable housing crisis and displace residents of color and lower-income residents while rewarding rich real estate investors with a lucrative tax break, according to a new report by the Alliance of Californians for Community Empowerment Institute, Americans for Financial Reform Education Fund,  Kansas City Tenants, and New York Communities for Change.

Report: Wall Street’s Big Opportunity: A Corporate Tax Break Masquerading as Community Development

The Opportunity Zone (O-Zone) tax break was created by the 2017 Republican tax cut legislation. It was promoted as a way to incentivize investment in economically disadvantaged areas but it is marred by poor design and flawed implementation so that it will most likely provide tax breaks for investments in already booming cities and gentrifying neighborhoods. The program incentivizes investments that aim to maximize returns in lower-income areas where residents are vulnerable to economic displacement pressures.