Send tips to Community Media Worskhop
cmw@newstips.org
NEWSTIPS HOME | About | Follow on Twitter @ChicagoNewstips


GE hit on “tax dodging,” Durbin on budget cuts

A dozen community and faith groups will protest “tax dodging” by General Electric and call on Senator Dick Durbin to lead the charge for corporate tax reform to fund social programs in related actions tomorrow.

Protestors will deliver a giant “cease and desist” letter calling on GE to “stop dodging taxes while lobbying for cuts to Social Security” at GE’s Chicago headquarters, 500 W. Monroe, at 12 noon on Thursday, August 22.  They will demonstrate outside Durbin’s office at 230 S. Dearborn at 12:40 p.m.

It’s part of a national week of action “outing” corporate tax dodgers across the country by Chicago-based National Peoples Action.

Tax-free profits

From 2002 to 2012, GE paid $2.1 billion in federal income taxes while earning $88 billion in profits — a tax rate of 2.4 percent, far below the official rate of 35 percent — according to Americans for Tax Fairness.

In four of those years GE reported $22.5 billion in profits but paid no taxes — and received $4.8 billion in tax rebates, according to the group.

One way it accomplished this was by investing U.S. profits overseas, according to Huffington Post.

Read the rest of this entry »

Community groups cheer DeMarco replacement

Last week Chicagoans joined a national protest action at the home of Federal Housing Finance Agency director Edward DeMarco, demanding his resignation.

On Wednesday, President Obama responded to growing demands to replace DeMarco, naming U.S. Representative Mel Watt (D-NC) as his replacement.

“It’s long overdue,” commented Katie Buitrago of the Woodstock Institute.

“This is a good day for homeowners and families across the state of Illinois and a big step in the right direction for our economy,” said Rev. Marilyn Pagán-Banks of IIRON, a Chicago-area organizing network.

“We now encourage Congressman Watt to implement common-sense policies like principal reduction to bring relief to tens of millions of homeowners and to jumpstart the economic progress our country needs.”

Community groups and housing advocates have called for DeMarco’s replacement for over a year, faulting him for blocking principal reductions on mortgages owned or guaranteed by Fannie Mae and Freddie Mac, which the FHFA oversees.

They argue that reducing mortgage principal to reflect the fair market value of homes that since the housing crash are worth less than what homeowners owe would prevent foreclosures, stabilize the housing market, and boost the economy.

DeMarco has been “the biggest roadblock to our country’s economic recovery,” said Tracy Van Slyke of the New Bottom Line coalition, which has spearheaded a “Dump DeMarco” campaign.

At last week’s action, as 500 people from National Peoples Action gathered at DeMarco’s Washington D.C. home,  Reverend Cliff Parks of Illinois Peoples Action noted that Fannie and Freddie control over half the mortgages in the nation, including those of nearly 14 million  underwater homeowners.  (See video below.)

Elizabeth Scrafford, a DePaul student and leader with IIRON Student Network, read a resignation letter drafted for DeMarco, holding him responsible for 1,800 families facing unnecessary new foreclosures every day that he has delayed approval of principal reduction.

Watt is known as an early advocate for action against predatory lending, Buitrago said.

Noting that he faces an uphill battle to win confirmation from the Senate, Buitrago said Obama should consider installing Watt with a recess appointment.  The administration’s previous nominee for the post withdrew in 2011 after Senate Republicans refused to act on his nomination.

Republicans say they want a plan from the administration for eliminating Fannie and Freddie before they consider an FHFA appointment.  But IIRON and other groups are calling on Watt to “support the vital role [the agencies] play in ensuring housing opportunities.”

Check out “NPA knocks on Ed DeMarco’s door,” from April 22:

‘Durbinville’ dramatizes safety net cuts

Local protestors will erect a “Durbinville” shantytown at the Federal Plaza at noon on Thursday, continuing their challenge to Senator Richard Durbin’s embrace of the austerity agenda that’s dominating budget talks in Washington.

Since Monday, a coalition of grassroots groups has been staging a soupline outside Durbin’s downtown office “to make visible the hunger and suffering that budget cuts will create,” according to a statement from IIRON.

All kinds of people are accepting the homemade soup being offered, and many are expressing surprise when they learn that Durbin is backing drastic safety net cuts, said Kristi Sanford of Northside POWER.

The long-term spending reductions Durbin is calling for — outlined in the Simpson-Bowles commission report he backed in 2010 – would be no better than the cuts required by “sequestration” if Congress fails to come up with a budget deal by the end of the year, Sanford said.

“They would push us back into recession, and we’d have more lost jobs and suffering,” she said.  “It would cut education, food security, a whole range of government services we rely on.”

Read the rest of this entry »

AG Madigan to back ‘maximum’ homeowner relief

At a rally with community organizations on Sunday, Illinois Attorney General Lisa Madigan is expected to commit to pressing for “maximum” mortgage relief for underwater homeowners as part of the federal-state investigation into bank fraud.

She’ll appear with the regional organizing network IIRON on Sunday, June 10 at 3 p.m. at St. Mark’s United Methodist Church, 8441 S. St. Lawrence.  IIRON will also be unveiling a new Covenant for Economic Justice.

It’s a significant step for Madigan, who’s a member of an Obama administration task force investigating securitization fraud in the foreclosure crisis, organizers say.

Last year IIRON pressed Madigan to hold out for more money to help homeowners wrongfully foreclosed on in the robo-signing settlement by state attorney generals. Though the monetary settlement in that case was disappointing, grassroots pressure did result in limiting banks’ immunity from liability in the deal, said David Hatch of IIRON.

He said IIRON and groups including National People’s Action are calling for $350 billion worth of principal reduction for underwater homeowners.  An NPA report last year estimated underwater homeowners in the U.S. owe a total of $700 billion more than their homes are worth.

Stealth bailout

That’s a serious drag on the economy, these groups argue, taking hundreds of billions of dollars out of the consumer economy – and a “stealth bailout” of banks, which caused the housing crash through reckless and predatory lending practices, and which have received trillions of dollars in bailouts and backstops, most of which will never be repaid.

Read the rest of this entry »

Robo-signing settlement called ‘good step,’ ‘sell-out’

Responses from community groups and advocates to the robo-signing settlement announced Thursday ranged from “good first step” to “sell-out to Wall Street.”

The Woodstock Institute emphasized the significant precedent of requiring banks to write down principals for homeowners who owe more than their homes are worth – an approach lenders have generally avoided taking until now.

The settlement “won’t end the troubles of homeowners” but is a “significant step in the right direction,” said Dory Rand.  She said resources need to be targeted to the hardest-hit communities. She called it “a real victory for homeowners.”

The $1 billion in homeowner relief expected for Illinois “will not suffice to restore all of homeowners’ lost wealth” but “it can potentially turn back the tides of default in hard-hit communities,” she said.

Woodstock estimates that 400,000 Chicago-area homeowners are underwater on their mortgages, together owing nearly $25 billion more than their homes are worth.

Rand reiterated Woodstock’s call on the Federal Home Finance Authority to stop blocking Fannie Mae and Freddie Mac from writing down principals in mortgage modifications.

Paltry restitution

In contrast, a coalition of community groups said the settlement “let banks off the hook.”

“Our elected officials completely sold out the people again to their Wall Street friends,” said IIRON, a regional network including Northside POWER and Southsiders Organized for Unity and Liberation.

IIRON emphasized the paltry sums given in restitution to homeowners who lost their homes due to fraudulent foreclosure practices.  They stand to receive up to $2,000 each.

Read the rest of this entry »

Groups tell Madigan, Donovan: ‘No’ to foreclosure deal

Community groups confronted HUD Secretary Shaun Donovan and Illinois Attorney General Lisa Madigan on Monday over a foreclosure fraud settlement the groups say is entirely inadequate.

Protestors sang, prayed, and testified outside a room in the O’Hare Hilton where Donovan and Justice Department officials were meeting with staff from state attorney generals to urge them to sign on to a settlement in a case arising out of the “robo-signing” scandal of October 2010 (see 10-21-10 Newstip).

The groups object to the deal with the five largest mortgage services – including Bank of America and JPMorgan Chase — as a “slap on the wrist” that would shield them from legal liability for a wide range of foreclosure misconduct.

(Van Jones of Rebuild The Dream and George Goehle of National Peoples Action spell out some concerns at Huffington Post.)

“President Obama and Attorney General Madigan must choose,” says Rev. Marilyn Pagan-Banks of Northside POWER. “Will they settle for a deal that benefits the 1 percent and lets the big banks off the hook? Or will they stand with the 99 percent and fight for accountability and a solution that will help millions of people?”

The O’Hare meeting may have been called to create an aura of inevitability around the settlement, Firedoglake reports, but none of the state attorney generals who have criticized its provisions were expected to attend.

Dissension in the ranks

Attorney generals of New York, California and other states have opposed provisions of the settlement that would give banks blanket immunity for misconduct and shut down ongoing investigations in New York and elsewhere.

Last week attorney generals from a dozen states (not including Illinois) met in Washington DC to discuss coordinating investigations — and their displeasure with settlement talks, according to Huffington.

Madigan is on the committee that is negotiating the settlement. After 50 state attorney generals began an investigation in 2010, the Obama administration began pressing for a settlement. (At Politico, Simon Johnson calls the case the administration’s “last chance” to stand up to banks.)

Several weeks ago members of the regional organizing network IIRON met with Madigan staff to express their displeasure with the deal. “They seemed surprised that we didn’t think the settlement is a great thing,” said Kristi Sanford.

When they learned of the meeting Monday, they organized a rally at the State of Illinois building – and upon learning the meeting’s location, a contingent set out for O’Hare.

There a couple dozen members of community groups from across the city asked a Madigan staffer if the attorney general could spare a few minutes to talk with them. The aide never returned – but police came to ask the protestors to leave, Sanford said.

The groups want banks to agree to write down underwater mortgages, and they say there must be a full-fledged investigation of bank misconduct. Criminal behavior by banks in the scandal is alleged to include perjury, filing false documents, illegal foreclosures, and investor fraud.

King Day: Occupy the Fed, foreclosures, schools

The civil rights movement, the Occupy movement, and community organizations will come together for a series of events marking Martin Luther King’s birthday this week, including a demonstration Monday at the Federal Reserve led by African American clergy including Rev. Jesse Jackson.

At the time of his assassination, King was organizing an “occupation” of Washington D.C., and after his death thousands of people occupied Resurrection City there from May 12 to June 24, 1968, demanding jobs, housing and an economic bill of rights.

In other King Day activities, housing rights groups are stepping up the drive to occupy foreclosures, and teachers and community groups are demonstrating against school “turnarounds.”

Over a thousand community activists are expected for an Occupy the Dream event (Sunday, January 15 at 3 p.m. at People’s Church, 941 W. Lawrence), where elected officials will be called on to support jobs and tax reform, including closing corporate tax loopholes and instituting a financial transaction tax.

It’s sponsored by IIRON, a regional organizing network that includes Southsiders Organized for Unity and Liberation, Northside POWER, and the Northwest Indiana Federation. Occupy Chicago has endorsed the event.

“We are organizing in the tradition of the civil rights movement,” said Rev. Dwight Gardner of Gary, president of the Northwest Indiana Federation.

“In Dr. King’s very last sermon, he warned us not to sleep through a time of great change like Rip Van Winkle,” he said. “This is a moment of great change and we must put our souls in motion to occupy his dream.”

At the Fed: National Day of Action

Monday’s action at the Federal Reserve (Jackson and LaSalle, January 16, 3 p.m.) is part of a national day of action to “Occupy the Fed” by the Occupy the Dream campaign, with African American church leaders moblizing multicultural, interfaith rallies in 13 cities.  They’ll be emphasizing racially discriminatory practices by banks which have resulted in high foreclosure rates, as well as the issue of student debt.

“There needs to be economic equality, there needs to be jobs for all, there needs to be opportunities for the next generation,” said Rev. Jamal Bryant of Occupy the Dream.

Read the rest of this entry »

Bank of America: ‘pay your taxes’

Community activists will deliver a message to Bank of America today, and another one to Senator Mark Kirk.

Members of ten community groups, under the umbrellas of the Chicago Housing Initiative and the Illinois Indiana Regional Organizing Network, will march on Bank of America (135 S. LaSalle) at 4 p.m. today demanding that they stop evading taxes.

Then they’ll head to Kirk’s office (230 S. Dearborn) to call on him to stand against cuts to services for low-income families until major corporations pay their share of taxes.

Chicago Housing Initiative maintains that Bank of America evaded a $3.8 billion tax bill this year using “accounting tricks and offshore tax havens” – reducing the bank’s stated earnings and actually netting it a $666 million tax rebate.

“That $3.8 billion in lost revenue could single-handedly prevent all the cuts to Head Start, LIHEAP, community health centers, and housing for the elderly, people with disabilities, and homeless veterans under consideration in the Senate currently,” according to the group.

“Our message to Kirk is that until big banks and corporations start paying their share of taxes, cuts to services for low-income families shouldn’t be on the table,” said organizer Leah Levinger.  “It’s inhumane – and it doesn’t do anything significant to shore up the budget.”



Get Newstips in Your Inbox!

Enter your email address:


Subscribe in a reader

Newstips Archives

Categories

Add to Technorati Favorites

RSS Nonprofit Communicator

  • An error has occurred, which probably means the feed is down. Try again later.

RSS Chicago is the World

  • Telling people’s stories, an ethnic media success September 2, 2015
        By Stephen Franklin Community Media Workshop   A 3-year-old child died on a plane from Chicago to Poland. This, Magdalena Pantelis instantly knew, was a story her readers would care about. But she needed more detail to write about it for the Polish Daily News, the nation’s oldest daily newspaper in Polish, founded Jan. […]
*

*

*



*










CAN TV is a network that belongs to the people of Chicago.  For updates on local programs, and live, timely coverage of community events, sign up at http://www.cantv.org