Planning a Long-Term Proactive Tax and Budget Campaign Prepared by OMB Watch 1742 Connecticut Ave., NW Washington, D.C (202)

What We Plan To Do Call to Action paper – in December, 2003 (see Internet Survey -- completed by over 700 respondents in Jan/Feb, Regional Strategy Meetings -- in Columbia, SC; Seattle, WA; Chicago, IL; Phoenix, AZ, and Philadelphia, PA.

What We Plan To Do (Cont.) National Retreat – develop specific recommendations and next steps. Online Resource Center – on tax and budget information. Face on the Numbers -- Online database ( of stories about unmet needs and how a service or program has made a positive difference.

What Happens Next? Develop Specific Recommendations and Next Steps based on action items under planning process. Determine Whether Resources Can Be Raised for local, state, and national groups to initiative a campaign. Address Leadership and Organizational Issues, including coordination, roles, etc. Begin Implementing the Plan of Action.

The Crisis: A Long-Term Budget Problem

The Budget & Tax Picture Today “We’ve got plenty of money in Washington, D.C., by the way.” President Bush in Louisville, KY February 26, 2004 “The tension is money. There’s not enough money.” Sen. Ted Stevens (R-AK), Chair Appropriations Committee March 3,

(Deficit excluding Social Security as % of GDP) Surplus Deficit % %

% %

1.8% of GDP = $207 Billion in 2004

Percent Change % %

Percent Change % %

Percent Change % %

The Longer-Term Budget & Tax Picture “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” Grover Norquist, Americans for Tax Reform June 25, 2003

Source: Steuerle, Carasso, Bishop, based on data from Gale, Orszag, and the Tax Policy Center.

Lost Federal Revenue Compared to Philanthropic Giving All figures in 2009 Dollars. Philanthropy source: American Association of Fundraising Counsel’s Trust in Philanthropy/Giving USA Assuming charitable giving keeps pace with the growth in the economy, giving in 2009 will be $341.4 billion. Charity would need to increase 142% to replace the lost federal revenue, assuming it continues to fund existing activities.

Source: Derived from Chart 12-5, OMB, 2005 Budget, Analytical Perspectives, page 194 As Baby Boomers Come of Age, the Deficit Explodes

The Long-Term Problem It’s a Revenue Problem. The tax cuts since 2001 cause long-term systemic problems. Additionally, there is a need to develop a fairer tax system with more revenue. Hard Choices Await Us. Even with additional revenue, some hard choices about spending priorities may be necessary. For example, some note that current health care policies are not sustainable over the long-term.

Conservative Perspectives on Taxes are NOT Supported

The govt doesn’t do anything for me I don’t like paying taxes because… Govt spends too much money on welfare and other handouts 75% 69%

What the Public Does Not Mind About Paying Taxes

The Public Supports a Strong Government and the Taxes to Pay for It… But 65% also Agree “I don’t like paying taxes because the government is too wasteful and inefficient.”

OMB Watch Tax and Budget Internet Survey

About the Internet Survey Not a Random Sample Over 700 Respondents with Diversity in Respondent Pool Respondents From Every State But Nebraska Survey Conducted Between January 13 – February 4, 2004

Survey Respondents 63% of Respondents Were 501(c)(3) Groups ; 10% government; 9% foundations; 7% 501(c)(4)s; 9% other 45% Said Their Primary Activity Was Service Provision 42% Said Their Primary Activity Was Advocacy Or Public Interest Work 42% Said Their Primary Mission Was Serving Children, Youth & Families

Survey Respondents

Groups Follow Tax & Budget Issues 70% of respondents say they closely follow state tax and budget issues, and 64% closely follow federal tax and budget issues. 64% 70%

Strong Support for a Tax & Budget Campaign 90% of respondents say it is time to launch a longer-term offensive campaign on federal tax and budget issues. 90% Given limited time and resources and the fact that there are many other important issues, do you agree or disagree that it is time to launch a long-term offensive campaign around federal tax and budget issues?

“It is important to identify what we are for, not just against, in a coordinated, long-term approach -- similar to what conservative parties and organizations have done so well. Instead, the non- profit sector is misunderstood by the public, given little to none media attention (other than scandals and disasters), and marginalized as a force in public policy and the public at large.”

Support for a Campaign Was Strong in Every Region 90% 92% South Carolina region includes: AL, FL, GA, KY, MS, NC, SC

Support for a Campaign Was Strong in Every Region Chicago region includes: IL, IN, MI, OH, WI 90%

Support for a Campaign Was Strong in Every Region Phoenix region includes: AZ, CA, NV 90% 92%

Support for a Campaign Was Strong in Every Region Philadelphia region includes: DE, DC, MD, PA, VA, WV 93% 90%

Support for a Campaign Was Strong in Every Region Seattle region includes: AK, ID, OR, WA 90%

State and National Groups Feel the Strongest About Initiating a Campaign A “10” would mean all respondents supporting a campaign felt very strongly and no one felt somewhat strongly. A “0” would mean all respondents felt somewhat strongly and none felt very strongly about the campaign. A “5” would indicate an event split between very strong and somewhat strong support.

What Should Be the Objectives of the Campaign?

9 in 10 Said the Campaign Should Address: 94%93% 90%

“ Redefine the definitions of "tax" as more than some kind of perverse theft of money. Tax must become redefined in a context of community-building, fairness, common ground and even patriotism. ”

Other Supported Campaign Themes 87% 75% 70%

A Majority Oppose Cutting Spending to Reduce the Deficit 56% %

What Should Be the Objectives of the Campaign?

What Should the Campaign Be Doing?

Top Four Activities Voter Mobilization for Accountability Improve Language We Use – Values Based Language Develop Policies & Principles that Provide Vision 89%88% 84% Those items with more than 80% support and where at least 50% felt it was very important to do the activity.

“ We need less studies and more grassroots activity… We need to learn to articulate our principles in language that 'sells,' i.e., ‘We're about building communities we can be proud of.’ ”

Other Very Highly Rated Activities (At Least 80% Support) Educate Community Leaders on Importance of Fair Taxes & Spending Priorities Research the Impact of Federal Changes on States and Program Areas Media Campaign with Positive Message Create a Local, State, & National Network to Work on Campaign Compile Stories About Benefits of Government as well as Gaps in Services

“ Media, media, media - we need a national and consistent public information and marketing campaign to change minds and opinions of the American public. ”

3 of 4 Say Advocacy Training is Needed How important is it to “offer advocacy training including on lobbying, grassroots organizing, and media advocacy?”

Two Activities Identified As Less of a Priority Public Opinion Research on Tax & Budget Issues Case Studies of Budget & Tax Campaigns

High and Low Priorities for Respondent Participation Develop Common Messages, Themes & Principles More Info on State/Local Impact Distribute Current Info on Budget/Tax More Info on Issue Area Impacts Workshops, Training, Meetings Funding Tax/ Budget Work

What’s It Take to Get Groups Engaged? Develop Common Messages, Themes & Principles More Info on State/Local Impact Distribute Current Info on Budget/Tax More Info on Issue Area Impacts Workshops, Training, Meetings Funding Tax/ Budget Work HIGH LOW

“ It's very difficult to understand how the federal budget and taxes directly impact our local communities -- we need translation and messages to reach us at our own homes and pocketbooks… Currently, it's difficult to directly see the consequences of cutbacks. ”

What Should the Campaign Be Doing?

What Are Some Challenges That Must Be Confronted?

Participation May Be a Challenge POSITIVENEGATIVE 90% of respondents say it is time to launch a campaign BUT 49% say they are unlikely to participate.

Even Though 49% say They Might Not Participate in a Campaign… 61% Say They Will Help Redistribute Information About the Campaign

Other Ways Groups Say They Would Participate

National and State Groups Most Likely to Participate 55% 54% 49% 45% 43%

While Only 54% Said Funding of Tax/Budget Work is Important… Two-thirds of state and local groups considered funding for tax and budget work important in getting them to participate. 44% of national groups considered funding important. 66% 62% 44%

Caveat on Funding (Cont.) Two-thirds of those who might participate consider funding for tax & budget work an important incentive. One-third of those who are unlikely to participate consider funding important. 69% 35%

76% 72% Top Challenges to Confront It’s an Organizing Issue

“ I believe there would be a need to decentralize the campaign and have designated organizations to give regional and local leadership to these efforts. ”

Other Challenges to Confront Relationships between National, State and Local Groups 67% say that national groups do not listen to state and local groups and are out of touch with their concerns “National organizations often fail to form the partnership and show little respect for the amount of work being done on the local level. In addition, national organizations are often very ‘abusive’ partners.”

Other Challenges to Confront Top Down Nature of Federal Budget & Tax Policy 69% say the top down nature makes state and local groups feel irrelevant. “Convincing local organizations to carve out time for working on ‘bigger picture’ issues when the day-to-day running of an organization are often overwhelming.”

Groups Optimistic About Building a Common Message 62%

“ Americans hate taxes, do not trust the government to spend them well and want to keep the money for themselves. To some extent this is natural, to some extent it has been very carefully and intentionally crafted by the right wing groups. That must be countered or change will go no where. ”

What Are Some Challenges That Must Be Confronted?