Johnette Hartnett, Ed'D'

1

National Community Tax Coalition Center for
Economic Progress March 15, 2005
TAX FACTS Building a New Model for Community
Economic Development and Asset Building for
Persons with Disabilities

• Johnette Hartnett, Ed.D.
• NCB Development Corporation
• Washington, DC

2
TAX FACTS Mission

• To set a new agenda for the 21st Century that
  will empower people with disabilities and their
  families to access mainstream financial and tax
  knowledge to improve their economic well being.

3
TAX FACTS Challenges

• High drop-out rates
• Entry level jobs
• High unemployment
• Complex tax system
• High asset poverty
• Fear of benefit loss
• 83 never claimed a deduction related to
  employment or disability

• Lack of familiarity with tax credits
• High number unbanked
• Less than half claim home mortgage deductions
• 25 have loans with financial institutions
• 46 have savings accounts

4
TAX FACTS Goals

• To build awareness, knowledge, and utilization of
  favorable tax provisions
• To expand financial education and service
  opportunities to advance self-directed economic
  security
• To link with existing community based asset
  building initiatives so to expand targeted
  outreach to persons with disabilities
• To increase the participation of persons with
  disabilities in mainstream financial services
  (checking, savings, account etc.)

5
TAX FACTS Assumptions

• Ownership of assets creates good life outcomes
• Underutilization of tax credits is due to lack of
  information and access
• Demographic change over next 30 years indicates a
  rise in disability population under 65 years
• Financial service products need retooling

• Finite resources will dictate entitlement reform
• Global aging and decreased fertility rates will
  require
• Most vulnerable populations need access to
  knowledge
• Medical bankruptcies

6
TAX FACTS Inputs and Infrastructure

• Outreach and development of 36 tax free tax prep
  sites NCBDC, IRS/SPEC and Coalition Core Groups
• Establish disability national advisory board
• Establish disability working groups within
  coalitions
• Collect data on number of persons with
  disabilities using VITA services

7
TAX FACTS Activities

• Create community partnerships with VITA sites and
  local disability organizations.
• Market information about tax filing, financial
  education and other asset building strategies to
  disability community.
• Provide train the trainer sessions environmental
  and programmatic access disability culture
• benefits counseling

• Provide national TA through series of webcasts
• Environmental and programmatic scan of tax prep
  sites for accessibility
• Educate tax prep volunteers about working with
  people of different abilities

8
TAX FACTS Outcomes

• LONG-TERM
• Increase the ability of 36 VITA coalitions in 33
  states to better serve pwd
• Increase participation of pwd in IDAs, banking
  services, home ownership, borrowing, pensions,
  and employment
• Increase the number of first-time filers on
  government benefits
• Improve the economic well- being of individuals
  and families with disabilities

• SHORT-TERM
• Build awareness of need for outreach to pwd
• Build trust between between VITA coalitions and
  disability organizations
• Attract resources for capacity building,
  technical assistance and curriculum development

9
TAX FACTS Impact

• Enhance consumer choice
• Foster Self determination
• Put more in local communities
• Reduce dependence on public benefits

10
TAX FACTS Impact

• Improved health, longevity and happiness
• Innovative new approach to and for disability
  community

• Move culture from income maintenance to asset
  ownership in 36 cities over 3 years

11
TAX FACTS Links

• Private Sector Groups
• TAX FACTS Webpage www.mastermymoney.org
• The New America Foundations AssetBuilding.org
  www.assetbuilding.org
• The Corporation for Economic Development
  www.cfed.org
• CFEDs IDA Network www.idanetwork.org

12
TAX FACTS LINKS

• Private Sector Groups, cont.
• The Center on Budget and Policy Priorities
  www.cbpp.org
• National Community Tax Coalition
  www.tax-coalition.org
• National Cooperative Bank Development
  Corporation www.ncbdc.org and
  www.mastermymoney.org

13
TAX FACTS LINKS

• Research Centers Email Newsletters
• Law, Health Policy, and Disability Center of the
  University of Iowa Disability.law.uiowa.edu
• One-Stop Toolkit www.onestoptoolkit.org
• Resources of the Week e-newsletterwww.onestoptool
  kit.org/resourceoftheweek.cfm
• The World Institute on Disability www.wid.org
• Equity e-Newsletter -- www.wid.org/publications/?p
  ageequity

14
TAX FACTS LINKS

• Federal Government Sites
• The Internal Revenue Service www.irs.gov
• Earned Income Tax Credit information --
  www.irs.gov/individuals/article/0,,id96466,00.htm
  l
• The Federal Deposit Insurance Corporation
  www.fdic.gov
• The Money Smart Program www.fdic.gov/consumers/co
  nsumer/moneysmart/index.html

15
TAX FACTS Communication

• Johnette Hartnett, Ed.D.
• Vice President
• NCB Development Corporation
• 1725 Eye Street, NW, Suite 600
• Washington, D.C. 20006
• www.ncbdc.org
• Law, Health Policy Disability Center
• University of Iowa, College of Law
• www.its.uiowa.edu/law/
• 202-218-7284
• E-mail JHartnett_at_ncbdc.org