July, 15 2020, 12:00am EDT

For Immediate Release
Contact:
Chris Fleming,Email:,chris@redhorsestrategies.com
TAX DAY: Billionaires Wealth Growth Exceeds State Budget Deficits
In about half the states, the growth in billionaire fortunes during pandemic exceeds projected gaps in recession-wracked state finances in 2020 & 2021.
WASHINGTON
In about half the states in America the growth in the fortunes of local billionaires during the pandemic exceeds--in many cases, dwarfs--the combined gaps forecast for state budgets in 2020 and 2021 caused by the medical and financial crises. This startling contrast of private gain with public pain is a graphic indicator that America's richest citizens are not paying their fair share of taxes--not contributing commensurate with their comfort--even during our national emergency.
California's 154 billionaires saw their collective net worth leap $175 billion between March 18 and June 17, three months later. (March 18 is roughly when the coronavirus shutdown began and the date that Forbes published its annual report on the wealth of billionaires.) That's almost double the Golden State's budget gap over the next two years, estimated to be somewhere between $89 billion and $95 billion. Similarly, New York's billionaire class grew $77 billion wealthier during the "pandemic spring," a bonanza almost six times the size of the projected $13.3 billion gap in the state's budget for the fiscal year that began July 1.
A chart showing all states with available data is here.
There are 23 states, among the 48 (plus the District of Columbia) for which there are relevant budget projections, in which local billionaires' wealth gain exceeds estimated budget gaps, ranging from the $85 billion advantage held by Washington State's 12 billionaires to the $740 million edge enjoyed by Missouri's five richest residents.
Altogether, the nation's 600-plus billionaires saw their fortunes balloon by a total of almost $600 billion during one of the roughest three-month patches in the nation's history, a time that saw 45 million Americans lose their jobs, over 2 million contract coronavirus and almost 120,000 die from it. Reports covering billionaire wealth growth over that period in two dozen states can be found here.
"This analysis shows how out of whack our economy has become with handfuls of billionaires in some states experiencing skyrocketing wealth growth that even exceeds the huge state revenue gaps that have opened up due to the coronavirus," said Frank Clemente, executive director of Americans for Tax Fairness. "A few very wealthy people in states are doing really well, while millions suffer. If there ever was a wake-up call to make the rich start paying their fair share of taxes this is it."
Revenue shortfalls caused by the drying up of tax receipts during the economic shutdown, plus pandemic-fueled increases in demand for healthcare and other public services, have combined to blow big holes in almost every state's budget. Unlike the federal government, which can borrow its way through a recession, states must balance their budgets each year. So those holes must be filled by spending cuts, tax increases, or some combination--all of which tend to prolong and deepen recessions.
State and local governments have already laid off 1.5 million workers, mostly from education, with more painful cuts coming to schools, roads, hospitals, public-safety agencies and more.
The growth in billionaire wealth, meanwhile, is tax free--unless and until a billionaire sells the assets that have grown in value. And even then, the profit on such "capital gains" is often taxed at about half the top rate of normal income such as comes from a salary. If the billionaire dies before selling, the profit is never taxed. Presumptive Democratic nominee Joe Biden is seeking reforms that would tax those gains of billionaires and of other wealthy Americans more fairly, raising more revenue for the kinds of public services now under threat. Biden's reforms could raise $4 trillion over the next 10 years.
The Senate GOP has balked at the House-passed HEROES Act, which would invest $3 trillion in immediate pandemic and recession relief and lay the groundwork for a more robust economic recovery. The funds would be partially allocated as follows:
- $500 billion in direct aid to state governments over the next two years for critical services.
- $375 billion in direct aid to local governments over the next two years for critical services. (Go here to see how much is going to individual communities in your state.)
- $117 billion in increased federal Medicaid funding over the next two years.
- $90 billion for public education, grades K-12 as well as public colleges and universities.
All of the above data for each state is available in one table here.
State residents would also get their fair share of the following other assistance provided by the HEROES Act:
- Extension through the end of the year of the $600 per week in enhanced unemployment benefits that currently expire at the end of July.
- Renewal and increase in direct assistance checks to individuals and families: $1,200 per each adult and child, up to $6,000 per household.
- $100 billion to protect renters and homeowners from evictions and foreclosures.
Support like this from the federal government is the only way to avoid deep cuts to state and local jobs and services that would prolong and worsen the pandemic and recession.
Americans for Tax Fairness (ATF) is a diverse campaign of more than 420 national, state and local endorsing organizations united in support of a fair tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
(202) 506-3264LATEST NEWS
'Staggering' Rise in Reports of Islamophobia During Gaza War
"People and institutions have spent the past two months weaponizing Islamophobia and anti-Arab bias to both justify the ongoing violence against Palestinians in Gaza and silence supporters of Palestinian human rights."
Dec 07, 2023
Three university students were shot and wounded in Burlington, Vermont. A New York City food cart vendor was repeatedly harassed by a former U.S. State Department official. A six-year-old boy was stabbed to death in Plainfield Township, Illinois.
Those are just three high-profile examples of what the largest Muslim civil rights and advocacy organization in the United States said Thursday is a dramatic surge in Islamophobia across the country since U.S.-backed Israeli forces launched a devastating war on the Gaza Strip two months ago in response to a Hamas-led attack on Israel.
From October 7 to December 2, the Council on American-Islamic Relations (CAIR) national headquarters and chapters received a total of 2,171 requests for help and reports of bias—a 172% increase over a similar two-month period the previous year.
"It's staggering to see this kind of spike in anti-Muslim and anti-Palestinian hate in less than two months," said CAIR research and advocacy director Corey Saylor. "Far too many people and institutions have spent the past two months weaponizing Islamophobia and anti-Arab bias to both justify the ongoing violence against Palestinians in Gaza and silence supporters of Palestinian human rights here in America."
The incredible bloodshed and destruction in Gaza—with over 17,000 Palestinians dead, about 80% of the 2.3 million residents displaced, and many homes, hospitals, mosques, and schools destroyed—have led to large-scale protests across the United States demanding that the U.S. government stop giving Israel billions of dollars in military aid.
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As Common Dreamsreported Thursday afternoon, Rep. Elise Stefanik (R-N.Y.) announced "an official congressional investigation with the full force of subpoena power" into the University of Pennsylvania, Harvard University, the Massachusetts Institute of Technology, and other schools regarding antisemitism on campus and administrators' responses.
CAIR revealed that at its national headquarters, First Amendment issues, or violations of the right to free speech and expression, are the most common cases at nearly 34%, a 63% increase from the first month of the war to the last four weeks. Those reports are followed by problems with employment (22%), hate crimes and hate speech (17%), and education and bullying (14%).
The cases include that of Jana Alwan, a Muslim woman who was riding a train in Washington, D.C. on October 18. According to a letter CAIR sent last month to the Metro Transit Police Department, an unidentified white man flashed a gun and threatened to behead Alwan, who "was wearing a keffiyeh, an identifiable scarf traditionally worn by Palestinian and Arab people."
Earlier this month, the Idara Jaferia Islamic Center in Burtonsville, Maryland, was evacuated because of a bomb threat. CAIR is calling on state and local law enforcement to bring hate crime charges against the perpetrator.
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Human rights defenders around the world expressed anguish and outrage Thursday after Refaat Alareer, a Palestinian professor who was one of Gaza's most prominent writers and activists, was killed in an Israeli airstrike in Shejaiya that also killed his brother, sister, and her four children.
Alareer, 44, was "a beloved professor of world literature, comparative literature, Shakespeare, and creative writing at the Islamic University of Gaza, where he taught since 2007," notedLiterary Hub.
According to the publication:
He was the co-editor of Gaza Unsilenced (2015) and the editor of Gaza Writes Back: Short Stories from Young Writers in Gaza, Palestine (2014). Dr. Alareer was also one of the founders of We Are Not Numbers, a nonprofit organization dedicated to creating "a new generation of Palestinian writers and thinkers who can bring together a profound change to the Palestinian cause."
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A groundswell of tributes to Alareer flooded social media following the news of his killing.
Gazan poet Mosab Abu Toha said, "Breaking, my heart is broken, my friend and colleague Refaat Alareer was killed with his family minutes ago."
"I don't want to believe this," he added. "We both loved to pick strawberries together. I took this photo of him this summer."
The American Friends Service Committee (AFSC)—Quaker peace group whoseLight In Gaza anthology featured Alareer's work—said in a statement that "Refaat was a friend, a mentor, and a father."
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Palestinian journalist Hebh Jamal wrote: "You killed my friend. Someone I kept praying would stay safe. Someone I messaged daily [because] his resilience gave me hope."
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Canadian author and activist Naomi Klein said she is "absolutely sickened by this loss."
"I was just now on his site reading his beautiful poetry," she added. "I feel such shame."
The Chicago-based website The Electronic Intifadasaid on social media it is "devastated by Israel's murder of our dear colleague, friend, and mentor."
"Throughout this genocide, Refaat never stopped writing, supporting his students, and bringing Gaza's voice to the world," the site added. "We will make sure it continues to be heard."
Journalist and filmmaker Dan Cohen wrote that "I'm in tears and sick to my stomach as I write this."
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Last month, Alareer posted one of his poems, "If I Must Die," on social media.
If I must die,
you must live
to tell my story
to sell my things
to buy a piece of cloth
and some strings,
(make it white with a long tail)
so that a child, somewhere in Gaza
while looking heaven in the eye
awaiting his dad who left in a blaze—
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not even to his flesh
not even to himself—
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bringing back love
If I must die
let it bring hope
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While welcoming the White House's willingness to tackle pharmaceutical companies' patent abuse and high prescription drug prices, progressive critics argued Thursday that U.S. President Joe Biden must do more to challenge Big Pharma's monopoly power.
The White House on Thursday announced "new actions to promote competition in healthcare and support lowering prescription drug costs for American families, including the release of a proposed framework for agencies on the exercise of march-in rights on taxpayer-funded drugs and other inventions."
Under the Bayh-Dole Act of 1980—legislation meant to promote the commercialization and public availability of government-funded inventions—federal agencies reserve the right to "march in" and authorize price-lowering generic alternatives to patented medications developed with public funding.
The federal government has never invoked march-in rights, which are staunchly opposed by the pharmaceutical and other industries and interests.
"American taxpayers pay more for research than any country in the world: Hundreds of billions of dollars on research relevant to developing new drugs through the [National Institutes of Health] and other agencies," White House domestic policy adviser Neera Tanden said at a Thursday press briefing, according toThe Hill.
"But at the same time, pharmaceutical companies charge Americans two to three times—and sometimes even more than that—for the same drugs than what they can charge in other countries," she added.
The White House said Thursday that the Department of Commerce and Department of Health and Human Services "released a proposed framework for agencies on the exercise of march-in rights that specifies for the first time that price can be a factor in determining that a drug or other taxpayer-funded invention is not accessible to the public."
The issue of greedy pharmaceutical companies charging exorbitant prices for publicly funded drugs took center stage during the Covid-19 pandemic, when corporations reaped record profits selling vaccines and other treatments developed fully or partly with taxpayer money.
U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bernie Sanders (I-Vt.)—a leading congressional critic of Big Pharma greed—called Thursday's announcement "a step forward in the right direction."
Sanders continued:
But, in my view, much more must be done. The American people are sick and tired of seeing hundreds of billions of their tax dollars going to the research and development of new treatments and cures only to end up paying, by far, the highest prices in the world for prescription drugs. In my view, the administration should reinstate and expand the reasonable pricing clause to require the pharmaceutical industry to charge affordable prices for new prescription drugs developed with taxpayer support. It should also move to substantially lower the price of the prostate cancer drug Xtandi by allowing companies to manufacture generic versions of this treatment. This is a drug that was invented with taxpayer dollars by scientists at UCLA and can be purchased in Canada for one-fifth [of] the U.S. price.
In March, patient advocates blasted the Biden administration's refusal to compel Pfizer to lower Xtandi's price, even though the lifesaving prostate cancer drug—which has a nearly $190,000 annual price tag—was developed completely with public funds.
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