Born at Bellagio: A Fair Share Tax Coalition

A child of a widowed mom fulfills an early dream to become a teacher in a struggling Milwaukee school. But she quickly determines that problems aren’t fixed in the classrooms; they are resolved in budgets set by distant lawmakers.

And those budgets rely on taxes. Which is, in shorthand, how Kristen Crowell, herself a single mom living what she calls “the scrappy working-class life,” became Executive Director of Fair Share America and a fair tax superheroine.

Fair Share America aims to inform, lead, and implement a national tax and revenue strategy to help create transformative change in the U.S. economy and society by helping working families thrive as well as increasing taxation transparency and garnering resources to meet a budget stressed by climate change.

Some 300 organizations from 20 states have signed up to participate in the Fair Share America coalition so far, and Crowell and her team are aiming the increase that number to 1,000 by January.

Credit: Tax Foundation

U.S. tax rates are progressive, but deductions and credits can reduce the overall tax burden. Many Americans feel taxes are so complex — the 2023 Internal Revenue Code is 4,193 pages long — that only corporations and wealthy individuals can afford the professional help needed to successfully navigate deductions, a 2023 Pew Research Center survey showed.

At the same time, individual income taxes are by far the government’s single largest source of revenue, says the Office of Management and Budget. So how much is collected impacts every government program.

The ambitious and complex task envisioned by Fair Share America requires across-the-board planning and collaboration. That’s where The Rockefeller Foundation comes in.

Fair Share America Was Born

Holding not only one but a series of convenings made the difference, noted Danielle Goonan, Managing Director, The Rockefeller Foundation. The first session in Washington, D.C., brought together about 80 organizations to define the policy problem; the second developed a suite of solutions. After these two gatherings, a smaller group met at the Bellagio Center to hone those solutions, and then presented them to the larger group back in Washington for feedback during the final meeting.

“This process opened the door for everyone thinking about tax policy at all levels to contribute their perspectives,” Goonan said. “The result is a plan shaped and embraced by all participants. This collective ownership injects substantial enthusiasm into the initiative, and positions Fair Share America for significant success.”

State Organizations Contribute Sustained Lessons

On the state side, Invest in Our New York is a coalition member as well as an organization with success under its belt: it recorded wins in 2021 with the policy changes that effectively increased taxes for state residents earning more than $5 million annually as well as New York-based corporations earning more than $5 million in profits annually.

“This has meant $10 billion annually in new recurring tax income for the state,” said Carolyn Martinez-Class, the organization’s campaign director.

“States are getting hit by more hurricanes or floods,” said Crowell, “so there is more appetite for lawmakers to increase revenue to deal with these catastrophes. And this could create a groundswell for changes in tax policies.”

Martinez-Class, 29, also noted that New York has fallen behind on its climate transition commitments at a time when some 75 percent of the incentives for clean energy under the Inflation Reduction Act are provided through tax benefits.

“Several projects that could advance our goals are shovel-ready,” she said. “Shifting our tax structure would provide the funding. When government leaders say there is not enough, we have to challenge the narrative that our hands are tied.”

Kristen Crowell and Carolyn Martinez-Class talk during a convening of leaders working on state tax campaigns in August 2023. (Photo Courtesy of Kristen Crowell)

Educating lawmakers and others is a core element of Fair Share America’s mission. “Tax policies contain a lot of boring words that don’t always make sense because that’s not the way we talk. Even policymakers don’t always get this stuff,” Crowell said. “So there is a need for massive education, but the information is going to come from real people with real stories.”

Crowell is passionate about her work. “Growing up, my mom raised us on social security benefits,” she said. “Without safety net benefits, I don’t know what would have happened when my dad passed away. I’ve fallen in love with tax policy because it is the single most powerful tool for transforming lives. I will do this until I die.”