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Coalition Calls for Equitable Taxation as Part of Pandemic Response

Posted on June 18, 2020

A coalition of progressive policy groups, nonprofits, and scholars are calling for an “equity-centered, people-first” response to the COVID-19 pandemic that includes “equitable taxation” policies and workers' rights.

In a June 16 news release, the North Carolina Justice Center announced that it has joined "fellow Southerners in a shared vision for the region's COVID-19 response" that is "equitable, accountable, and transparent." Coalition members have agreed to a list of values that will shape their efforts, including equitable taxation, according to the release.

The coalition's website, SouthStrong.org, defines equitable taxation as part of "an economy that works for all, fueled by a revenue system that asks those who make the most to contribute the most."

"In the last two months, the COVID-19 pandemic has laid bare the social and economic inequities shouldered by people of color and workers making low wages," according to the coalition. “Combating this public health threat and mitigating the economic fallout will require coordination among neighboring states and bolstering of public services. Given the South’s history of poor, limited worker protections and structural racism carried out by a host of discriminatory policies and practices, equitable and targeted access to these public resources must be a priority."

Alexandra Sirota, director of the North Carolina Justice Center's Budget and Tax Center, told Tax Notes June 17 that "the bottom line of equitable taxation in the South is [that] for too long our state tax codes have asked more from people who have low income and are living in poverty and less from the very wealthy. And that upside-down tax code across the South is making it more difficult over the long term for a truly inclusive public infrastructure in communities."

For too long, policies in the South "have pitted states against each other in a race to the bottom," according to Sirota. “We need to have a vision for a South that is equitable and inclusive and delivering on well-being for every person. By setting forward a set of values but also a set of concrete ideas on how to get there, we can better work together across the region to show that the South can promote opportunity and well-being for every person."

At this point the groups do not have a shared set of policy ideas because each state has different policy levels and different policy contexts to work in, according to Sirota.

Sirota said the groups and scholars agree that there are equitable sources of revenue and ways to make sure that big corporations and higher-income earners are contributing alongside everyone else.

If the coalition sees bills introduced that run counter to the idea of putting people first, Sirota said, “the hope is we’ll be better able to make those choices clear.”

Other policy groups that have joined the coalition include the Economic Policy Institute, the Florida Policy Institute, the Georgia Budget and Policy Institute, the Kentucky Center for Economic Policy, the Commonwealth Institute for Fiscal Analysis, and the West Virginia Center on Budget and Policy.

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