CalNonprofits Articles

CalNonprofits often chooses to take positions on issues that affect California’s nonprofit sector as a whole, or affect significant portions of the sector. Recently, our Board has taken stands on two important issues that we want to share with you:

First, we are pleased to announce our support of AB 43 (introduced by Assemblymember Mark Stone), which would create a refundable Earned Income Tax Credit (EITC) for low and middle-class families in California.

The Earned Income Tax Credit is one of the most important ways to support working families. Twenty-five states have already established their own EITC to magnify the impact of the federal EITC. Studies focused on state EITCs adopted in other states have estimated that each additional dollar received by a tax filer can generate a further $1.50-2.00 in local economic activity.

The U.S. Census Bureau reported California’s poverty rate at 23.4%, the highest rate among all 50 states. Low and middle-income households, for the most part, have been left out of recent economic gains. The bottom three-fifths of households have experienced stagnating income gains while the top one-fifth have experienced gains of 52.4%.

By establishing a state EITC, California can take a step toward closing this income gap. CalNonprofits supports AB 43 because it offers an effective policy tool for reducing poverty and for improving the communities that our member organizations serve and represent.

Second, CalNonprofits, along with other nonprofits such as Housing California, California Partnership and Bend the Arc, is endorsing Make It Fair, a campaign committed to closing the corporate loopholes in Proposition 13 while protecting homeowner and renters and investing the new funds in the local services our communities need.

Proposition 13 has been debated since it was passed by California voters in 1978 in an effort to protect homeowners from high property taxes. As a result of its passage, property taxes were lowered to a constitutional maximum of 1% and local property tax revenues fell by more than 60%. As counties and cities saw their revenues plummet, they were forced to make drastic cuts in public safety, county infrastructure, in schools, and in services to the vulnerable in our communities. Cuts in all these areas translated disproportionately to cuts in funding to community nonprofits that provide these services. At the same time, loopholes in the law allowed many commercial property owners to avoid reassessment of their property, thereby paying less than other similar and competing commercial property owners, distorting local economies and reducing revenue to local government to invest in growth and needed services. It’s time to close these loopholes and restore the billions of dollars to our communities and the nonprofits that both serve them and speak for them.

For more information about this campaign, please contact info@MakeItFairCA.com


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