Building Tomorrow: Elevating Teachers, Empowering Students

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How Can We Better Support Teachers? The Future of America's Classrooms is at Stake

Introduction: Teachers are the backbone of our nation’s future, yet they face numerous challenges. Low pay, lack of classroom resources, and burnout are driving many educators out of the profession. But what if we could change that? What if we could make teaching a sustainable, rewarding career that attracts and retains the best talent for decades to come?

Here are the key numbers behind the issue and how we can solve it :

Key Numbers to Consider:

- Teacher Pay Gap :

According to a report from the Economic Policy Institute, teachers earn, on average, 23.5% less than other college-educated professionals in the U.S. In some states, that gap widens to nearly 40% . In 28 states , teachers make less than 80 cents on the dollar compared to other professionals with similar qualifications​

Congress.gov | Library of Congress .

Thought : Should we be asking why teachers—who educate future doctors, engineers, and business leaders—are paid so much less than other professionals with similar education?

- Teacher Shortages :

In 2023, over 310,000 teaching positions were either vacant or filled by under qualified staff​

Representative Jason Crow . The shortage is particularly severe in low-income and rural areas , where schools struggle to attract qualified teachers, especially in subjects like STEM and special education. This affects the quality of education students receive, exacerbating inequities.

Thought : How can we close this gap and ensure every classroom has a qualified, dedicated teacher? Should we consider federal programs that provide direct financial relief to teachers?

- Teacher Turnover :

Nearly 50% of teachers leave the profession within the first five years. Low pay, poor working conditions, and lack of support are cited as the primary reasons. Turnover rates are even higher in high-poverty schools​

Representative Jason Crow .

Thought : What can we do to improve working conditions and make teaching a career teachers will stay in for the long haul?

How Can We Help?

- Close Corporate Tax Loopholes to Fund Education :

The proposed ** Corporate Tax Fairness and Education Funding Act aims to generate billions in new revenue by closing tax loopholes used by large corporations and private equity firms. The additional revenue would be directed toward:

- Teacher salary increases in underfunded districts.

- Modernizing school resources and infrastructure, especially in low-income areas.

- For example, closing the carried interest loophole alone could generate up to $18 billion over 10 years​

Congress.gov | Library of Congress . This revenue could fund salary raises or provide vital resources for public schools that currently lack the basics.

Revenue Impact : Closing offshore profit-shifting loopholes could generate $80-$100 billion annually ​

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Thought : Should corporations benefiting from a skilled workforce contribute more to the system that produces that workforce? How would dedicating these funds to education transform the quality of our schools?

- Exempt Teachers from Federal Income Taxes :

The Teacher Tax Relief and Retention Act proposes exempting all K-12 public school teachers, both full-time and part-time, from federal income taxes. This would effectively increase their take-home pay without requiring direct salary raises from local or state governments.

For example, a teacher earning $60,000 could save between $4,500 and $7,500 annually depending on their tax bracket, which would have a significant impact on their financial stability​

Global Data and Statistics | Data Pandas .

Thought : Could a tax exemption for teachers help reduce turnover and attract more talent to the profession? Would this encourage more young professionals to consider a career in education?

- Investing in Teacher Residency Programs :

The Teacher, Principal, and Leader Residency Access Act aims to use Federal Work-Study funds to support teacher residency programs. Residency programs are critical in giving new teachers hands-on classroom experience, and this bill could help low-income and rural schools attract well-prepared educators. By alleviating the financial strain on aspiring teachers, this act also helps retain educators long-term​

Thought : Should we be focusing more on teacher training programs like residencies, where teachers gain critical skills while being paid, instead of requiring them to take on massive student loans?

The Big Picture:

- Teacher Salaries : Implementing legislation like the Pay Teachers Act , which ensures a minimum starting salary of $60,000 , could attract new talent and significantly reduce turnover​

Congress.gov | Library of Congress . This would bring teacher salaries closer in line with other professions and create a more competitive, sustainable career path.

- Federal and State Support : States and the federal government must work together to close the funding gaps between wealthy and underfunded districts. Programs like federal tax exemptions for teachers, along with incentives for states to increase their education budgets, could be game-changers.

Conclusion:

We can no longer afford to undervalue the very people who shape the future of our country. With bold, innovative policies like closing corporate tax loopholes and exempting teachers from federal taxes, we can create a system that respects and supports educators. The future of America's classrooms depends on the actions we take today.

Stay connected with Building Tomorrow for updates on legislation and more ways to advocate for teachers and students. Together, we can elevate education and build a brighter future for all.

Let's look at the specific tax loopholes and their potential impact if closed, including how much revenue they could generate and what that means for education funding.

Key Tax Loopholes and Revenue Estimates:

- Carried Interest Loophole :

- What is it? : The carried interest loophole allows private equity and hedge fund managers to pay taxes on their income at the capital gains tax rate (typically 20% ) instead of the ordinary income rate (up to 37% ).

- Revenue Impact : Closing this loophole could generate up to $18 billion over the next 10 years​.

- Impact : These funds could help boost teacher pay, with $18 billion being enough to provide a $5,000 annual raise to around 3.6 million public school teachers for one year.

- Offshore Profit Shifting :

- What is it? : U.S. corporations often shift profits to foreign subsidiaries in low-tax countries to reduce their taxable income in the U.S. Profits remain "offshore," avoiding U.S. taxes until repatriated.

- Revenue Impact : Closing offshore profit-shifting loopholes could generate $80-$100 billion annually ​ Representative Jason Crow ​ Congress.gov | Library of Congress .

- Impact : With this amount, the U.S. could fund teacher salary increases and resources for every public school in the nation. For context, it could cover infrastructure improvements and classroom upgrades in low-income and rural districts —transforming the educational environment for millions of students.

- Interest Deductibility for Leveraged Buyouts (LBOs) :

- What is it? : Private equity firms often use leveraged buyouts to acquire companies, then deduct the interest on the debt they incur. This practice dramatically reduces their taxable income.

- Revenue Impact : Limiting the interest deductibility in leveraged buyouts to 30% of EBITDA could generate around $50 billion over a decade​

- Impact : This $50 billion could be allocated to fund teacher residencies and training programs. Residency programs, like the ones promoted in the Teacher, Principal, and Leader Residency Access Act , provide hands-on classroom experience and better prepare teachers for long-term success​.

- Minimum Corporate Tax :

- What is it? : Many corporations, despite making millions in profits, pay little to no federal taxes due to loopholes, deductions, and credits. Instituting a 15% minimum tax ensures that all corporations pay a baseline amount.

- Revenue Impact : Implementing a minimum corporate tax could generate around $60 billion annually ​ Global Data and Statistics | Data Pandas .

- Impact : This could be used to create a national fund dedicated to raising teacher salaries and providing school resources, addressing the 310,000 teacher vacancies across the U.S. by making the profession more financially attractive​.

The Big Picture:

Altogether, closing these tax loopholes could generate an estimated $158-$180 billion annually . Here's what that could mean for teachers and schools:

- Teacher Salaries : A significant portion of this revenue could provide across-the-board salary increases for teachers. If just $60 billion were allocated to salaries, it could mean an average raise of $10,000 per teacher for 6 million educators .

- School Resources : Another portion could be used to purchase critical classroom resources. For example, with $40 billion , every underfunded school in the U.S. could receive upgraded technology, books, and supplies.

- School Infrastructure : Finally, with $20 billion dedicated to school infrastructure, the U.S. could modernize thousands of aging and unsafe schools, creating better learning environments for students.

Conclusion :

The revenue generated from closing these corporate tax loopholes offers a direct solution to many of the challenges facing America's public schools. With billions at stake, this funding could make teaching a more attractive and sustainable career while ensuring that every child has access to a quality education in a well-supported, resource-rich environment.

Here are the key figures who have introduced the major teacher retention and education-related legislative initiatives:

- RETAIN Act (Retaining Educators Takes Added Investment Now) :

- Lead Sponsor : Senator Dick Durbin (D-IL)

- Co-sponsor : Senator Martin Heinrich (D-NM)

This act provides refundable tax credits to educators in Title I schools to help retain teachers, particularly in underserved areas​ Martin Heinrich .

- Pay Teachers Act :

- Lead Sponsor : Senator Bernie Sanders (I-VT)

This legislation ensures that teachers receive a livable, competitive salary with a starting base of at least $60,000 and progressive raises throughout their careers​ Congress.gov | Library of Congress .

- Teacher, Principal, and Leader Residency Access Act :

- Lead Sponsors :

- Representative Jason Crow (D-CO-06)

- Representative Lori Chavez-DeRemer (R-OR-05)

- Representative Brian Fitzpatrick (R-PA-01)

- Representative Jahana Hayes (D-CT-05)

This bipartisan bill supports teacher residency programs by allowing Federal Work-Study funds to be used to pay for residency costs, helping to improve teacher preparation and retention​

These legislative efforts are supported by a variety of organizations, including the National Education Association (NEA) and the American Federation of Teachers (AFT), reflecting a widespread consensus on the need for better teacher compensation and support systems.

What I can Do:

Official Executive Order 140XX – Closing Corporate Tax Loopholes and Enhancing Education Funding

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1: Purpose

To ensure fairness in the corporate tax system and secure the necessary revenue to support public education, this Executive Order directs federal agencies to take immediate action to close corporate tax loopholes. The revenue generated will be allocated to improve teacher salaries and provide critical resources to public schools, prioritizing high-need districts.

Section 2: Closing Corporate Tax Loopholes

a. The Department of Treasury and IRS shall eliminate the carried interest loophole, ensuring that carried interest is taxed as ordinary income.

b. The deduction of interest on loans used in leveraged buyouts shall be limited to 30% of EBITDA, preventing excessive tax benefits from debt-financed acquisitions.

c. Offshore profit-shifting practices will be curtailed, with stricter enforcement against corporations using tax havens to avoid U.S. taxes.

Section 3: Establishing a Minimum Corporate Tax

A minimum corporate tax rate of 15% is hereby established for all corporations with profits exceeding $1 million. This ensures that corporations contribute a baseline level of taxes regardless of deductions.

Section 4: Education Enhancement Fund

Revenue generated from closing these loopholes shall be directed to the Education Enhancement Fund to:

- Increase public school teacher salaries, particularly in underfunded districts.

- Improve classroom resources, including technology and teaching materials.

- Upgrade school infrastructure in high-need areas.

Section 5: Transparency and Reporting

All corporations benefiting from federal contracts must disclose their effective tax rates and any use of offshore accounts. The Treasury Department will publish this information for public access.

Effective Date: This order is effective immediately upon signing.

Signed:

Vincent Dean Cordova, Jr.

The White House

[Date]

Corporate Tax Fairness and Education Funding Act

Title I: Closing Corporate Tax Loopholes

Section 101: Carried Interest Taxation

Carried interest shall be taxed as ordinary income. This reform closes the loophole that allows private equity managers to benefit from lower capital gains tax rates.

Section 102: Limiting Interest Deductibility for Leveraged Buyouts

Corporations may deduct no more than 30% of EBITDA for interest expenses on loans used for leveraged buyouts.

Section 103: Taxation of Offshore Profits

Corporations using offshore tax havens must report all profits earned by foreign subsidiaries and will be taxed on these profits regardless of whether they are repatriated to the U.S.

Section 104: Minimum Corporate Tax

Corporations earning more than $1 million in annual profits must pay a minimum tax rate of 15%.

Title II: Education Enhancement Fund

Section 201: Creation of the Education Enhancement Fund

Revenue generated from the closure of corporate tax loopholes shall be directed to a fund established by the Department of Education, with allocations as follows:

- 60% to raise public school teacher salaries.

- 30% to fund classroom resources and technology.

- 10% to improve school infrastructure, particularly in underfunded districts.

Section 202: Distribution of Funds

Funds will be allocated to states based on need, prioritizing districts with the lowest teacher salaries, highest poverty rates, and significant infrastructure challenges.

Title III: Transparency and Accountability

Section 301: Corporate Tax Transparency

Corporations benefiting from federal subsidies or contracts must disclose their effective tax rates and the use of foreign subsidiaries. The Treasury will make this information publicly available.

Section 302: Annual Impact Report

The Department of Education, in collaboration with the Treasury, will produce an annual report detailing the impact of this legislation on teacher pay, school resources, and infrastructure improvements.

Title IV: Implementation

Section 401: Effective Date

This Act shall take effect at the beginning of the next fiscal year following its passage.

Conclusion

With the signing of the Executive Order 140XX and the introduction of the Corporate Tax Fairness and Education Funding Act , we are taking a major step forward to ensure that corporations contribute their fair share to society. This will generate the resources needed to provide a quality education for all American students, with a particular focus on increasing teacher pay and addressing disparities in school funding. teachers pay teachers pay no tax for teachers