(BPRW) NATIONAL URBAN LEAGUE’S MAIN STREET TAX INITIATIVE: A BOLD, EQUITABLE PLAN TO LIFT COMMUNITIES OUT OF POVERTY AND STIMULATE ECONOMIC GROWTH | Tech Zone Daily

(Tech Zone Daily) WASHINGTON, D.C. — As the policies of the Trump administration and the chaos of their reckless application threaten to crater the economy and deepen inequality, the National Urban League unveiled a blueprint for an innovative approach to U.S. tax policy that contribute to income and wealth inequality.

The Main Street Tax Initiative is a bold, comprehensive and equitable plan to lift undercapitalized communities out of poverty and stimulate their economic growth.

“The post-pandemic policies of the previous administration slashed child poverty and reduced year after year,” National Urban League President and CEO Marc H. Morial said. “But the policies of the current administration threaten to squander the strong economy it inherited – and the chaotic and uncoordinated way these policies are being implemented has created an uncertainty that is, in itself, perhaps the direst threat.”

The ten-point Main Street Tax Initiative  represents a transformative path for every American to pursue the promise of the American dream:
 

1. Create Direct Tax Cuts and Incentives to Support Low- and Moderate-Income Workers. Most of us live on our salaries—but billionaires live on their undertaxed wealth.
    
2. Make the New Markets Tax Credit Provision Permanent. The NMTC is a vital tool to build more affordable housing, attract billions in private investment, finance community revitalization, and encourage economic stability in communities that need it most.
    
3. Expand the Low-Income Housing Tax Credit. This would significantly boost the supply of affordable housing units; generate a substantial impact on communities; provide stability for working families; and help to address significant affordable housing needs.
    
4. Create an Affordable Housing Tax Credit for the Construction of New Homes. Increasing the supply of affordable housing and incentivizing private investment will lead to increased homeownership for low-income families, job creation, revitalization of low-income communities, improved education, and reduced crime rates.
    
5. Restore the State and Local Tax (SALT) Deduction. Since 1913, the SALT deduction equalized the combined federal, state, and local tax burdens across the country, but the TCJA SALT deduction cap impacted middle-class homeowners due to rising property taxes and incomes and made home ownership unattainable for some in certain states.
    
6. Extend and Expand the Child Tax Credit and Reverse the Earned Income Tax Credit’s Measure of Inflation. The new measure of inflation will cause EITC benefits to grow at a slower pace in future years. Well-developed tax credits that uplift working families can drastically reduce child poverty and increase educational attainment, contributing to stronger communities, higher earnings as adults, and a healthier economy overall.
    
7. Establish the ‘Fair Deal for America Tax.’ This would apply to an extremely small group of ultra-wealthy individuals with wealth above $1 billion, who would pay a modest 1% annual surtax on their accumulated wealth to address wealth concentration inequities, ensure a fairer contribution to the nation’s revenue base, and take meaningful steps towards closing the racial wealth gap
    
8. Extend or Make Permanent the Standard Deduction Increase. The increase helped low- and moderate-income families reduce the tax they owed, made itemizing not as beneficial for many, and reduced the need for tax return preparers and to keep track of expenses or save receipts as with itemizing deductions. If it’s not made permanent or extended, it will likely result in a tax increase for many of these families.
    
9. Incentivizing Corporate Investment in Certain Stressed and Rural Communities. Extend the Opportunity Zones provision enacted to encourage long-term investment in undercapitalized communities by providing tax incentives for new investment. If not extended, these communities could see a decrease in economic growth.
    
10. Prioritize Growth of Pass-Through Businesses. Small businesses are about 99% of businesses, employ about half of all workers, and allow Americans to control their income, create jobs, and have financial independence. The Qualified Business Income deduction supporting these small businesses should be extended.