By Steve Taylor
Lisa Rodriguez, community relations specialist for JPMorgan Chase, says her bank has seen how EITC has changed people’s lives. (Photo: RGG/Steve Taylor)
McALLEN, February 1 - The economic stimulus package currently being hammered
out in Congress is well and good, Rio Grande Valley business leaders say, but
there’s a local equivalent that can produce far greater dividends.
While the Bush Administration talks about returning $300 to $600 a person, or $1,500 per family, from last year’s tax returns, the Earned Income Tax Credit can provide up to $4,716 for a family with two or more children who earn less than $39,000 a year.
The contrast was highlighted by Steve Ahlenius, president and CEO of the McAllen Chamber of Commerce, at a news conference to launch the McAllen EITC Project on Thursday.
“EITC is an economic stimulus program,” Ahlenius explained. “It brings new money into the economy. It puts money into people’s pockets to allow them to spend in the local economy. It also simulates the economic growth of this economy.”
The McAllen EITC Project is spearheaded by the Children’s Defense Fund of the Rio Grande Valley (CDF-RGV), United Way of South Texas, and the McAllen Chamber of Commerce.
The Project seeks to raise awareness about EITC refunds for low- to moderate-income working families and promote a free tax preparation program.
Ahlenius said that when he went to McAllen city commissioners to ask for their blessing of the Project he explained that, if successful, the Project would pump $1.5 million in new dollars into the McAllen economy alone.
The McAllen EITC Project has two centers staffed mainly by IRS-certified students. One is at the Palm View Community Center in McAllen, and the other at PSJA ISD’s Career and Technology Center.
“Four days the center has been open,” Ahlenius said, of the Palm View center project. “Already, they have provided over $71,000 in EITC. That’s exciting to see.”
Those in the audience at the news conference, including staff from sponsors like JPMorgan Chase, IBC Bank, Bank of America, Frost Bank, Texas State Bank, and Wells Fargo cheered.
“It’s a great program. It’s one of those things that I call true economic development, bootstrap entrepreneurship, it’s very important for our community,” Ahlenius said. “We have our challenges but this is a program that benefits those people who are out there working, it gives money back into the economy.”
Paul Rodriguez, a former Valley banker who sits on the board of Affordable Homes of South Texas and is CEO of Valley Land Title Company, agreed with Ahlenius’ remarks about the economic stimulus package coming out of Washington, D.C.
“Quite frankly, the efforts and all the talk, the BS and hot air that is going to go on over there (Congress) is well and good but this (EITC) is what is going to make things happen,” Rodriguez said.
Rodriguez
thanked Ahlenius for getting the City of McAllen to participate in the EITC
effort for the first time.
“Without his support and the people he brought in we would not be as strong
as we are today,” Rodriguez said.
“The City of McAllen and its commissioners tend to be very conservative and rightfully so. They do not routinely dish out funds for superfluous events.”
Ahlenius
ran through the numbers to show just how much the Valley leaves on the table
when EITC is not claimed.
“IRS reports indicate that nearly $8 billion in EITC refunds went unclaimed
in 2007, including an estimated $80 to $90 million for the Rio Grande Valley,”
Ahlenius said, in a statement issued to accompany the news conference.
“The goal of the Project is to help workers file for their share of an estimated $9 to $10 million left unclaimed in the McAllen area alone. Helping them claim maximum refunds can be a powerful contribution to our families and to the local economy.”
The CDF-RGV has been providing EITC outreach and Volunteer Income Tax Assistance since 2004. That year, 127 tax returns were filed, $72,638 was claimed, and $163,596 was refunded by the government.
Thanks to an increase in community partners, including dozens of IRS-certified student volunteers, the project has gotten bigger. In 2007, 1,306 tax returns were filed, $843,718 was claimed, and $1.6 million was refunded.
CDF-RGV Director Luisa Saenz said that in the first four years of operation, 269 volunteers have filed 2,448 returns on behalf of working families in the Valley. They have claimed $1,850,351, and seen $3,357,379 returned.
Saenz praised the 200 volunteers that have undergone the necessary e-filing training for the McAllen EIC Project. “It’s amazing to have these young people with this kind of ability provide this kind of service,” Saenz said.
Saenz said organizers were hoping to double the amount of families the Project can help, from 1,300 to 2,500. However, to do this, visibility in the community has to increase. She said that with the help, for the first time, of the City of McAllen and United Way, the goal was achievable.
“So many families don’t know about EITC. So many families think that because they don’t owe taxes they don’t have a refund coming. So, this program is about getting the word out,” Saenz said. “We have sent 30,000 flyers went out in the PSJA area and 30,000 in McAllen area to targeted employers to tell employees.”
Saenz thanked the CDF-RGV’s longtime partners, JPMorgan Chase, IBC, and Bank of America, and new supporters such as Texas State Bank and Wells Fargo. The banks are providing staff and money to make the Project a success.
“It takes a community to support this Project, so we are very excited that the City of McAllen, the McAllen Chamber of Commerce and United Way have seen how critically important it is to get this money to the families,” Saenz said.
“This initiative is going to allow us to reach out to thousands and thousands of low-income workers who earn less than $39,000 a year, who could get as much as $4,716 in refunds. The effort is about the community.”
Luisa Rodriguez, a community relations specialist with JPMorgan Chase, said her bank was proud to have been with the Project from the get-go.
“We
have seen how this has changed people’s lives. We believe in what Luisa
is doing, we believe in the city of McAllen. We know there’s a lot of
dollars sitting on the table and we want to get those dollars back into people’s
pockets,” Luisa Rodriguez said.