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Poverty and Education: A Critical Analysis of the Ruby Payne Phenomenon
by Jennifer C. Ng & John L. Rury - July 18, 2006
Current estimates show that historically high percentages of American children live in poverty. In order to serve them well, educators must understand the particular experiences and challenges these children face. Increasingly, the professional development of teachers on the topic is drawn from the work of Dr. Ruby Payne, a self-proclaimed expert on poverty and poor children. In this article, we examine the conceptual and empirical foundations of Payne�s A Framework for Understanding Poverty and vignettes in an accompanying teacher workbook that depict the lives of poor children and their families. Situating Payne�s argument within decades of scholarship conceptualizing poverty, we assess the extent to which it accurately reflects a contemporary, research-based comprehension of the issue. Reminiscent of earlier �culture of poverty� perspectives, Payne�s work essentializes the values, behaviors, and orientations of poor people; reinforces misconceptions and popular stereotypes; and suggests poor people have choices about whether or not to remain in poverty. This has serious implications for how teachers come to understand the nature and causes of poverty, and it misdirects well-intentioned efforts to educate poor children by disregarding the larger social context in which they live and are expected to succeed.
Research indicates that poverty rates among American children have reached as high as 22 percent in recent years, and from this historically elevated figure, perhaps a third can be described as experiencing persistent or long-term poverty (Hernandez, 1997; Mayer, 1997; Brady, 2003). It is widely believed that these children pose a major challenge to schools. Many reside in central-city neighborhoods or relatively isolated rural areas, compounding existing obstacles to equal educational opportunities and academic success. (Books, 2004) Yet, studies consistently document that most educators themselves come from middle-class backgrounds, making it difficult for them to relate personally with students who live in poverty (Zeichner, 2003). As a result, the capacity of teachers to work with poor children is shaped by teacher educators, school district administrators, educational researchers, and other experts. It is not clear, however, just what lessons about the poor are being transmitted to teachers and other educators, and how they are being prepared to work with them more effectively. In the absence of a well-defined research base on educating children affected by poverty and corresponding programs of training and professional development, a wide range of perspectives and approaches can flourish.
Arguably, one of todays most conspicuous speakers on issues of poverty and education is Dr. Ruby Payne, president of a company called Aha Process, Inc. and author of a self-published book titled A Framework for Understanding Poverty, currently in its fourth revised edition (2005). Payne has sold more than half a million copies of her book since 1996 as well as related workbook materials, and her organization conducts workshops and training sessions for tens of thousands of educators, administrators, and other human-service professionals across the country and abroad. A principal thrust of these activities is teaching people about poverty and working with poor children in school settings.
Paynes remarkable popularity reflects growing concern about poverty and its effects on childrens educational experiences. As educators grapple with the challenge of meeting performance standards for all groups of students, districts have been actively seeking answers to the problem of working with children in poverty. Payne and her organization have been actively involved in these developments, providing professional development designed to explicitly address these issues. In this article, we examine the conceptual and empirical foundations of her work and conduct a critical analysis of descriptive case scenarios included in an accompanying workbook for teacher practice. What viewpoints do Paynes ideas about poverty represent? And what recommendations are conveyed in these training sessions? Situating Paynes argument within decades of scholarship about poverty, we assess the extent to which it accurately reflects a contemporary, research-based comprehension of the issue. The fact that her characterization of poverty mirrors earlier culture of poverty theses and lacks recognition of social structural dynamics contributing to inequality could have significant implications for how educators ultimately come to view poverty and the children who experience it.
Paynes framework for understanding poverty
In the introduction of her book, Payne explains that her expertise on poverty resulted primarily from being married for over 30 years to her husband, Frank, who grew up in situational (or temporary) poverty, but lived for several years with others who were in generational (or long-term) poverty. As she spent time with his family and got to know the many other players in [their] neighborhood, her personal observations led her to conclude that there were major differences between those in generational poverty and those in the middle classthe most important of which were not about money (2005, p. 1). These insights were confirmed in her mind after Payne spent six years as a principal in an affluent, Illinois elementary school and was able to further contrast the differences she witnessed between children in poverty, the middle class, and wealth.
Payne recalls several informal conversations she had with concerned colleagues about the growing disciplinary problems they were experiencing as more and more of their students came from low-income families. She offered them her explanation of why these behaviors were occurring, and then word-of-mouth referrals from teachers, principals, district, and state officials launched her into a series of speaking engagements where she could more formally share her insights with other educational practitioners. Central to Paynes analysis of poverty is the idea that there are hidden rules which distinguish the thinking, values, and behaviors of people in poverty from those who are middle class or wealthy. And because most schools operate from an implicitly middle-class perspective foreign to poor children, educators must first understand the class culture from which their students come and then teach them explicitly the rules of the middle class needed to function more successfully in schools and society.
According to Payne, poverty is characterized not only by lack of financial resources, but also the extent to which individuals possess other resources such as emotional stability, mental skills, spiritual guidance, physical health and mobility, support systems, role models, and knowledge of a groups hidden rules (2005, p. 7). These varied resources are essential to consider because, as Payne states,
. . . the reality is that financial resources, while extremely important, do not explain the differences in the success with which individuals leave poverty nor the reasons that many stay in poverty. The ability to leave poverty is more dependent upon other resources than it is upon financial resources. (p. 8)
Payne argues the cultivation of emotional resources is of utmost importance, defined as being able to choose and control emotional responses, particularly to negative situations, without engaging in self-destructive behavior. This is an internal resource and shows itself through stamina, perseverance, and choices (2005, p. 7). The involvement of role models is critical, then, because it is largely from role models that [a] person learns how to live life emotionally (2005, p. 9). Although all individuals have role models, Payne cautions, The question is the extent to which the role model is nurturing or appropriate (2005, p. 9). Good role models and support systems should be able to offer advice about and demonstrate a more desirable alternative than living in poverty.
Being a teacher allows one quite naturally to serve as a role model or support to children in poverty. Payne explains,
Even with the financial resources, not every individual who received those finances would choose to live differently . . . But it is the responsibility of educators and others who work with the poor to teach the differences and skills/rules that will allow the individual to make the choice. (2005, p. 113)
A teachers involvement is essential since many individuals stay in poverty because they dont know there is a choiceand if they do know that, have no one to teach them hidden rules or provide resources (2005, p. 62). Payne identifies education as:
. . . the key to getting out of, and staying out of, generational poverty. Individuals leave poverty for one of four reasons: a goal or vision of something they want to be or have; a situation that is so painful that anything would be better; someone who sponsors them (i.e., an educator or spouse or mentor or role model who shows them a different way or convinces them that they could live differently); or a specific talent or ability that provides an opportunity for them. (p. 61)
Given the tremendous opportunities to influence some of the non-financial resources that make such a difference in students lives (2005, p. 25), Payne recommends that educators first learn to analyze the resources poor students and their families have before offering advice to improve their situation. To this end, the workbook that accompanies Paynes main text presents fourteen different scenarios of poor children and their current situations for educators to practice evaluating. Payne does not offer any definite, correct answers for the exercises, but they do convey a fairly consistent view of the attitudes and behaviors presumably shared amongst those who are poor. It is useful, for this reason, to carefully examine the descriptive case scenarios Payne provides in her effort to help educators better understand poverty, its effects on children, and its implications in school settings.
What characteristics and circumstances constitute poverty?
As indicated earlier, money is one of several resources included in Paynes framework for understanding poverty, but she argues that it is of only slight to moderate importance compared to other factors. The logic of a position that seemingly disassociates ones financial resources with ones class status may initially seem perplexing. However, a closer examination of Paynes descriptive scenarios depicting poor peoples lives helps to illuminate her overall view about how different resources function to maintain poverty, as well as her resulting recommendations.
For example, in her main text, Payne differentiates between situational poverty, a temporary state caused by circumstances such as death, illness, divorce, and generational poverty, a state which endures for two generations or more (2005, p. 3). The importance of this distinction is linked to the prevailing attitudes she associates with each group people in situational poverty are often too proud to accept charity, whereas people in generational poverty believe society owes them a living (2005, p. 47). Representing the mentality of situational poverty in Paynes accompanying workbook meant for teacher evaluation is Opie, a 12-year-old African American girl, and her mother, Oprah, a 32-year-old widow supporting a senile grandmother and unemployed uncle. Oprah works long hours as a domestic for a doctor, and although she is not paid very much, she takes public transportation and seems able to make ends meet. There is no mention of the family needing public aid, and in fact, Oprah is hoping to be able to save some money for future emergencies that might arise (1998, p. 16). Another example of situational poverty is Steve, a 17 year-old White male who was put out onto the streets by his alcoholic, abusive father. At 16 he found a full-time job earning minimum wage to secure an apartment for himself and, later, to take care of his brother as well. Steve works hard and all [he] has time to do is go to work, go to school, and sleep (1998, p. 23). In both scenarios, the individuals strive to be self-sufficient through legitimate forms of employment and persist in an effort to improve their life circumstances.
In contrast, though, the sense of entitlement supposedly fostered in generational poverty more commonly leads to illegitimate means of securing financial resources. For example, Juan is a six-year-old Hispanic boy who lives with his grandmother who cannot speak English, and a 25-year-old uncle, Ramon. Juans father was killed in a gang-related shooting and his mother is in jail, so Ramon looks after Juan. In order to support the family, Ramon sells drugs with his gang and makes an average of $1,000 a week. Ramon does not expect to live past his thirtieth birthday because of his dangerous lifestyle, but he continues leading his gang and plans to kill a rival gang member and then flee to Mexico for a while (1998, p. 18). A similar situation is discussed in the scenario about Geraldo, a 13-year-old Hispanic male who is a prominent gang member in his neighborhood. Geraldo remains involved with his gang as a matter of pride, and makes $4,000 in a week selling drugs, sharing it with 10 other members. Like Ramon, Geraldo anticipates he will be dead before he turns 25 and therefore believes, You might as well enjoy life and girls. Ultimately, Geraldo admits, . . . faithful is not in my vocabulary. Im only faithful to them streets (1998, p. 22).
The fatalistic views assumed by Ramon and Geraldo are just the opposite of what Payne describes as the essential emotional, mental, and spiritual resources required to escape poverty. Because Payne generally conceives of povertyand staying in povertyas at least partly a matter of choice, an individual must have the ability to identify and reason through various courses of action, particularly those necessitating deferred gratification and personal restraint. The scenario of Magnolia, a 16-year-old White girl in tenth grade who single-handedly takes care of her eight siblings because her mother is neglectful and irresponsible, exemplifies a person who possesses these critical resources. Magnolia demonstrates her emotional resources by refusing to steal from others, even though her mother instructs her to do it so they can have food to eat and [she] cant remember a time when [she wasnt] hungry sometime during the week (1998, p. 24). However, Magnolias commitment to caring for her siblings is clear as she sneaks the welfare check out of the mailbox to buy food for the family before her mother can waste it gratuitously on herself. Magnolia gets Bs and Cs in school but aspires to be a teacher. Payne tells us that she could earn As if only there was time to do her homework and maximize her mental resources.
Magnolia, however, is an exceptional case in Paynes workbook. Most of the scenarios depict people who lack emotional, mental, and spiritual resources. For example, Habib is a likeable and easily persuaded 18-year-old, African-American male whose one great attribute is that he is one heck of a fighter (1998, p. 21). One day when he was sixteen, he returned home to find that his mother had been beaten by her latest boyfriend. After calling an ambulance for her, Habib went looking for her boyfriend but decided it might be a good idea to break into and rob a pawnshop instead. Payne suggests that this course of action represented Habib trying to resolve his anger, and when he was caught, he also had a gun in his pocket. Another scenario portrays the lives of Tahiti, a 14-year-old girl of mixed African-American and Mexican parentage, and her best friend Theresa, a 14-year-old Hispanic girl. Neither of the girls does well in school, and Tahitis family life is fraught with drinking and abuse. In order to give their lives meaning, these girls actively try to get pregnant so they can have something of [their] own (1998, p. 25).
All of the people in Paynes scenarios have physical resources, although they function differently for men and women. While men gain advantage from their ability to fight and willingness to utilize violence (as seen in the scenarios of Ramon, Geraldo, and Habib), Payne indicates that women can use their bodies and sex to elicit favors. The scenario of John and Adele best illustrates the significance of a womans physical resources. Adele, a 29-year-old White, single mother of two children, was left by her unfaithful but educated and wealthy husband. Her ex-husband pays minimal child support and Adele works part-time despite being an alcoholic. When Adeles car breaks down, she is financially unable to have it fixed and may get fired if she cannot report to work the next day. Adele assesses the available choices and determines that one way to solve her problem is to invite the mechanic over for dinner. The mechanic later calls and invites her out to dinner instead, mentioning that they might be able to work something out in terms of payment. Adele thinks, It has been a long time since [I] have been out, and he is good-looking and seems like a nice man (1998, p. 15).
Payne suggests that Adele would likely benefit from having a support system for times of need, and that Ramon, Geraldo, and Habib could use role models to teach them appropriate, less destructive behaviors. The scenario of Wisteria and Eileen attests to the importance that Payne attributes to support from extended family. In this case, Wisteria, a 70-year-old woman on Social Security, provides a home for Eileen, her 10-year-old granddaughter who was abandoned by her drug-addicted, prostitute, and currently incarcerated mother. Wisteria only receives about $150 a week and is in declining health, but her willingness to take care of Eileen means that the child will not be placed in a foster home. Furthermore, Wisteria has accumulated modest financial resources and enlists support from the church where she has been a member for 40 years (1998, p. 17).
The church is a critical institution in Paynes view, but it is unable to address the problems of poverty by itself. A church serves as a social support in the scenario about Maria and Noemi, a Hispanic mother-and-daughter pair from a devout Catholic family that receives food stamps but is otherwise quite loving and intact. What Payne suggests 10-year-old Maria learns from Noemis role-modeling, however, is that she should get married, have children, and stay home like her mother (1998, p. 19). Similar patterns of early pregnancy are also perpetuated by the maternal example in the scenario of Tijuana Checosovakia, a 14-year-old African-American girl who had her first child when she was 11 (1998, p. 20); Sallys 15-year-old sister in the scenario of Sally and Sueann (1998, p. 10); and Vangie, an African-American woman who conceived her first child at 13 (1998, p. 12). Again, for Payne it is emotional and moral resources that count more than financial support. Even if the individuals and families in her various scenarios have adequate material means of subsistence, it is their values and behavior that most critically determine their prospects for escaping poverty.
Interestingly, the primary positive role models mentioned in Paynes scenarios are educators. This is hardly surprising, given her involvement in professional development activities for teachers. For instance, Magnolias aspiration to become a teacher (discussed earlier) was inspired by the kindness of her own fifth-grade teacher who provided a Thanksgiving meal for her hungry family. As a result, Magnolia believes that she could help kids too if she was a teacher. In the scenario about Steve (also discussed earlier), it is a school counselor who persuades him to stay in school and graduate even though he is exhausted trying to balance a full-time job and classes. The counselor expresses faith in Steves ability to learn, and personally meets him at 7:00 in the morning to provide algebra tutorials.
Through these interactions with teachers and other school officials, Magnolia and Steve have role models who can serve as their sponsors out of poverty. They can, in other words, finally be provided an opportunity to learn the hidden rules of the middle class to do well in school and become financially self-supporting, successful members of our society. Of course, these also are examples of educators who are going beyond the general call of duty, working with students outside of the normal workday and using their own resources rather than those of the school or district. What these individuals draw upon are emotional and moral resources as well, and their examples in Paynes scenarios reinforce the emphasis that she places upon these attributes. In framing the social problem of poverty in such basic human terms, Payne adds considerable force to her arguments about its origins and the possibilities for its resolution. On the other hand, the reality of working with such students is often considerably more complicated than her scenarios may suggest, and poverty may not be as closely tied to morality and associated hidden rules as she seems to believe.
A critique of Paynes framework
Without doubt, the conceptual clarity and apparent applicability of Paynes framework for understanding poverty are among its primary assets. Yet, given the heated scholarly debates regarding poverty over the last several decades, her authoritative-sounding pronouncements about childrens socioeconomic status and their educational and behavioral outcomes are rather remarkable. This apparent certainty appeals to many peoples common-sense notions of how poverty functions and how it can be eliminated. It is important to note, however, that the underlying logic of Paynes conception of poverty is not well-supported by contemporary social science research, and her straightforward explanations and conclusions may hold problematic implications for poor children and those educators who serve them. In the discussion that follows, we consider a number of potential criticisms of Paynes work, including her selective use of social science research to support her arguments about the impact of poverty on education and other outcomes for children in society.
One problem in Paynes framework of poverty is the extent to which she essentializes the values, behaviors, and orientations of those who are poor. Although Payne distinguishes between different circumstances of poverty, she routinely describes the poor in sweeping fashion as individuals who differ markedly from others in the middle and wealthy classes. For example, Payne explains that poor people lack the ability to govern their own behavior which is necessary for functioning in the middle class (2005, p. 77). As a result, the scenarios discussed earlier in this article are intended to illustrate how the line between what is legal and illegal is thin and often crossed so that the poor simply see jail as a part of life and not necessarily always bad (2005, p. 22). Also, she maintains that the poor assume their life circumstances are inevitable, so money is either shared or spent immediately. Disciplinary action is seen as being about penance and forgiveness rather than really changing negative behaviors; men value hard labor and identify as a lover and a fighter with bars and work as their main social outlets; and women learn that sex will bring in money and favors. Values are important, but they dont put food on the tableor bring relief from intense pressure (2005, p. 2324).
Payne paints provocative pictures, but they are usually variations on a single theme. Life in poor families is characterized by constant chatter and background noise from the TV which is almost always on; disorganization and clutter; matriarchal and extended family structures; and multiple internal feuds with nearly everyone having multiple relationships, some legal and some not (2005, p. 5156). Such scenarios convey powerful images, and all but a couple of them depict poor people as engaging in behavior of questionable moral character. Even if the main character in a story is a largely innocent student, she or he is usually presented as contending with adults who have proven to be morally weak. Whether it is an out-of-work uncle or a father in jail, an unwed pregnant sister or a drunken mother, the children in these stories are victims of the adults who have failed them. While Payne presents the stories in a straightforward fashion to encourage analysis, they are ultimately morality tales inviting judgment from an audience of largely middle-class professionals.
A second concern is that Paynes essentialized portrayal of the poor and problems related to poverty can lead to misconceptions or contribute to popular stereotypes about people in poverty. As noted earlier, central to Paynes analysis of poverty is the idea that there are hidden rules or mental models which distinguish the thinking and behavior of people who are poor from those who are middle class and wealthy. In identifying these characteristics, Payne appears to rely heavily on the work of Oscar Lewis (1968), Michael Harrington (1962), Richard Sennett (Sennett & Cobb, 1973), and other writers from the 1960s and early 1970s who, to one degree or another, endorsed a culture of poverty thesis about behavioral differences between the poor and others. Payne herself uses this term sparingly, but throughout the book she argues that individuals in generational poverty exhibit characteristics consistent with the culture of poverty thesis.
As evident in the descriptive scenarios, the poor are generally depicted as having a weak work ethic, little sense of internal discipline or future orientation, and leading lives characterized to one extent or another by disorder and violence. In making these characterizations, Payne seems to be unaware of the many studies dating from the late 1960s that challenged the culture of poverty thesis, in many instances directly testing the extent to which traits such as these were more prevalent among the poor than other groups. By and large, these studies found that such characteristics were not more likely to be evident in poor individuals or households. Indeed, people in poverty valued work, saving money, behaving properly, maintaining stable families, and a number of other middle-class attributes as much as their counterparts in higher social and economic strata. These results, moreover, held across groups with experiences of differing duration in poverty and across racial and ethnic lines (Roach & Gursslin, 1967; Irelan, Moles, & OShea, 1969; Coward, Feagin, & Williams, 1974; Davidson & Gaitz, 1974; Abell & Lyon, 1979; Carmon, 1985; Jones & Luo, 1999).
To put the matter another way, this body of research suggests that many of the attitudes that Payne attributes to the poor are also evident to varying degrees among the non-poor, groups that Payne would describe as the middle class and the wealthy. After all, there is considerable evidence that individuals in these groups have characteristics of the sort that Payne attributes only to the poor: a variable work ethic, inability to save money, and uncertainty in interpersonal relationships. Recent studies indicate that traditional middle-class values on a range of issues have shifted in the past several decades. Divorce, for instance, is now widely seen as acceptable, a broad range of personal behavior is tolerated or accepted, and work judged to be demeaning is often spurned, even in the face of unemployment. (Thornton & Young-DeMarco, 2001; Jaynes, 2000) Mainstream values of the sort Payne holds up as exemplary appear to be considerably less prevalent today than in the past, throughout all segments of the population.
Much of the behavior Payne describes, consequently, is not exclusively a problem of the poor and may therefore reflect values that she incorrectly attributes to poverty. Middle-class or upper-class individuals, of course, are less likely to suffer as a result of such behaviors because, as Payne notes, having monetary resources makes the consequences of such attitudinal or behavioral characteristics considerably less dire. However, a major problem in her interpretation is suggesting that there may be a causal force to these attributes. While they may make it difficult for some to escape poverty under current social and economic conditions, there is little evidence that such traits are especially prevalent among the poor, and they do not explain why some people fall into poverty and others do not. Studies challenging the culture of poverty thesis have cast serious doubt on the proposition that a clearly distinguishable culture of poverty in fact exists. By and large, it is a term that has fallen out of use in the social science literature today.
The studies that Payne does reference offer little support for her formulation of mental models that distinguish the behavior of the poor. One study she cites a great deal is Susan Mayers (1997) book, What Money Cant Buy. Mayer argues that . . . activities, possessions and housing environments that are important to childrens outcomes are only moderately related to parental income (p. 113). In other words, the poor do not lack in resources necessary for children to succeed, and middle-class status is hardly a guarantee of a childs success. What matters are the values of parents, and Mayer (like many other researchers) offers scant evidence that the poor have different values than other groups. On the surface, of course, this point would appear to support Paynes argument, and it is no doubt for this reason that she cites Mayers work. But Mayers position is more complicated than this, and directly addresses the question of whether income is related to parenting practices, an issue at the core of Paynes argument. In examining this matter, Mayer reports that there is negligible difference between the poor and other families. After reviewing the evidence from survey data, she concludes, These results provide little evidence that parents income has a large influence on parenting practices. Nor do the results in this chapter suggest that parental income has a large effect on parents psychological attributes other than their feelings of efficacy. And parental efficacy has only a moderate effect on childrens outcomes (1997, p. 124). By and large, according to Mayer, parenting practices and the values that inform them are generally unrelated to income. This is hardly a finding that provides support for Paynes framework for understanding poverty, despite her use of Mayers book for confirmation of her theories.
Mayer does indicate that some persistently poor parents are shiftless and neglectful, adding that their households exhibit neither the moral nor the material standards that most Americans believe children require (1997, p. 151). But she also makes it clear that families falling into this category are only a part of the persistently poor, who also suffer from illness, depression, and other limitations quite separate from their moral predilections. This suggests that poor families of the sort that Payne describes as reflecting generational poverty represent a modest proportion of the poor, perhaps less than a quarter and probably lower. Given these figures, it stands to reason that the children in such families would be a rather small fraction of all children, possibly just 3 or 4 percent. As Mayer concludes, poverty alone is not synonymous with incompetence, and as the number of families living in poverty rises, the average poor person becomes more like the average middle-class person (1997, p. 152). This too is an argument in sharp distinction from Paynes, which suggests that the numbers of attitudinally deviant poor families are increasing (Payne, 2005, p. 61).
Another book Payne cites a number of times is a collection of studies edited by Greg J. Duncan and Jeanne Brooks-Gunn (1997) titled, Consequences of Growing Up Poor. Again, Payne appears to have been rather selective in choosing quotes from this source, as the various studies provide little support for her analysis. In the chapter examining the link between income levels and parenting practices, for instance, Hanson, McLanahan, and Thomson (1997) echo Mayers points described above, We found that household income and debt are only weakly related to effective parenting. Consequently, differences in the levels of parenting do not account for much of the association between economic resources and childrens well being (p. 219). While the researchers did find evidence that various approaches to parenting had different effects in poor and non-poor households (with control and supervision being less important in the latter), this did not materially affect the relationship between income and childrens outcomes. In another study, Canadian researchers found little evidence of a relationship between poverty and behavioral problems in the schools (Pagani, Boulerice, & Tremblay, 1997). These and similar conclusions throughout the book indicate that the relationship between poverty, the values and behavior of parents, and the welfare of children are a good deal more complicated than Payne suggests.
What is perhaps most problematic about Paynes framework for understanding poverty is its underlying logic that suggests poor people have choices about whether to remain inor escape frompoverty. As illustrated in the scenarios described earlier, Payne argues that the poor may not realize they have a choice to live differently, and even if they do recognize their own agency, they may be reluctant to exercise it without the aid of a sponsor who can model the appropriate use of emotional resources. Payne explains that in poverty,
There is a freedom of verbal expression, an appreciation of individual personality, a heightened and intense emotional experience, and a sensual, kinesthetic approach to life usually not found in the middle class or among the educated. These patterns are so intertwined in the daily life of the poor that to have those cut off would be to lose a limb. Many choose not to live a different life. And for some, alcoholism, laziness, lack of motivation, drug addiction, etc., in effect make the choices for the individual. (2005, p. 113)
As a result, Payne indicates that helping poor children develop self control requires both structure and choice so that they can recognize what behaviors are expected of them, identify the consequences accompanying particular actions, and ultimately emphasize that the individual always has a choiceto follow or not to follow the expected behaviors (2005, p. 78). Emphasizing that emotional resources are the most important factor in the perpetuation of poverty implies it is the poor themselves who bear the greatest responsibility for their condition, despite the extensive research literature suggesting otherwise. For example, Payne overlooks the predominant social and economic causes of poverty highlighted in social science literature such as deindustrialization, discrimination, unequal educational resources, and socioeconomic segregation (Massey & Denton, 1993; Wilson, 1996). These studies dispel prevalent beliefs that changing individuals values and behavior can affect their social mobility, or that children in poor and lower-class households have the same objective opportunities for inter-generational social mobility as children from more affluent families.
Recent research on the state of the very poor in American society suggests that their social environment is considerably more influential than Paynes book indicates. The Gatreaux project in Chicago, for instance, has demonstrated that moving families out of inner-city communities with highly concentrated poverty can have a significant effect on the life chances of children and adults alike. Once relocated to middle-class neighborhoods, children performed better in school, adults found employment, and family prospects improved. (Kaufman & Rosenbaum, 1992) This research casts considerable doubt on the mental models theory that Payne postulates in her book. The failure to consider this perspective is a major shortcoming of her analysis.
Furthermore, although Paynes reference to individuals in situational and generational poverty does not correspond to data categories on the census and are thus difficult to quantify exactly, the research literature on poverty indicates that the largest group of these children are racial/ethnic minorities (mostly African-American) living in central-city neighborhoods where local employment opportunities are severely restricted. Payne, however, suggests that race is largely unrelated to poverty. In doing so, she sidesteps the critical issue of systematic, historical patterns of discrimination and exploitation that have contributed to the persistence of widespread poverty in the United States. Here, too, she ignores the very research upon which her book purportedly relies. A study cited by Payne reports that African-American families in 1980 were more than seven times more likely to experience persistent poverty (more than six years) than Whites. African-Americans also were more likely to live in a neighborhood where more than a fifth of the residents were persistently poor by about the same margin (Brooks-Gunn, Duncan, & Maritato, 1997). Children in these families often live in environments where the effects of concentrated poverty are evident, a term employed by William Julius Wilson to describe to describe the impact of deindustrialization and long-term unemployment on inner-city communities (Wilson, 1987, 1996). These statistics tell a different story about the relationship between poverty and race than Payne describes, particularly with respect to the persistent poor.
Meaningful efforts to educate poor children and work towards the elimination of poverty in society at large necessitate a commitment to understanding and reforming the existing structure of socioeconomic stratification. This entails a critical analysis of contemporary economic shifts and needs (Books, 2004; Kantor, 1999; Ranney, 1999; Wilson, 1987), as well as attention to the advantageous functioning of the system to particular groups of privileged people (Gans, 1995; Jencks, 1972). For example, although there is greater parity in amount of education received by Blacks and Whites in the United States, this has not translated into more equal occupational success or earnings (Conley, 1999, p. 86). Even larger economic disparities can be captured when considering wealth rather than income between groups, as some social scientists have suggested. Oliver and Shapiro (1997) explain,
Wealth is money that is not typically used to purchase milk, shoes, or other necessities. Sometimes it bails families out of financial and personal crises, but more often it is used to create opportunities, secure a desired stature and standard of living, or pass along a class status already obtained to a new generation. (p. 171)
The measure of ones wealthincluding things such as inheritance, investments, and propertyhas the particular attribute of quantifying the social value of ideas or objects (Conley, 1999, p. 144).
Payne concludes that in conceptualizing poverty,
Naming the problem is the first step toward a solution, and the most important step, for if the problem is not named accurately the course of action based on that faulty assumption will only lead further and further from a solution. So naming problems accuratelymaking the correct diagnosisis crucial because it is on those definitions that the theories of change and program activities are based. (2005, p. 169)
Yet, Paynes own viewpoint is largely unsubstantiated in current research literature. Through a detailed analysis of the descriptive scenarios Payne provides to accompany her framework for understanding poverty, it is clear that the poor are portrayed rather monolithically in their values and behaviors, which generally correspond to the culture of poverty thesis of the late 1960s and early 1970s. In like fashion, then, Payne recommends that educators serve to inspire and model change so the poor know there is a more desirable way of living. If only the problem of poverty could be so simply diagnosed, then the remedy would be fairly straightforward. Yet Paynes work may misinform well-intentioned efforts to educate poor children by locating the problem of poverty within the individual without regard to the larger social context in which they live and are expected to succeed.
The Payne phenomenon in perspective
Given the issues identified above, the influence of Dr. Ruby Payne presents something of a puzzle. If her viewpoint is so heavily tilted toward a certain perspective and the research base for her work is so questionable, what explains the popularity of her book and the apparent success of her workshops? As suggested above, the clarity of her explanation for poverty and related issues, along with the confident tone of her narratives and recommendations, may explain part of the appeal. The fact that she purports to draw upon decades of academic research no doubt lends credibility to her enterprise and its publications. But it is also possible that a good deal of the interest her perspective draws from educators is rooted in their own middle-class conceptions about the poor and the causes of poverty. Most educators, after all, are unfamiliar with the extensive research literature on poverty and its effects on children, and if Paynes citations seem to support their own views about the poor, they would hardly be in a position to challenge the interpretation of research that Payne offers. If they are predisposed to believing that the poor are lazy and impulsive as well as unreliable and temperamental, they are more likely to agree with Paynes analysis than to question it. In short, Payne may be popular simply because she echoes commonplace assumptions about why some individuals appear to succeed in American society while others do not.
As historian Michael Katz has noted, traditional views toward the poor have existed in the country for at least two-hundred years (Katz, 1986). In the past, observers of the poor distinguished between those considered worthy and unworthy. The difference was typically linked to personal rectitude, much like the distinctions that Payne notes in separating situational from generational poverty. Her mental models conceptual framework and the scenarios she describes echo the ideas of middle-class welfare reformers from the past, for whom poverty was more a moral condition than a matter of economic status. Now, as then, children are depicted as victims of the problematic attitudes and behaviors their parents exhibit and deemed highly susceptible to inheriting the same dysfunctional worldviews. While this may elicit sympathy and concern for students who live in poverty, and perhaps cause teachers to devote more time and attention to their needs, it is unlikely to create a sound, research-based comprehension of the problems presented by poverty and the best ways to address them. Because of this, it seems unlikely that Paynes framework will lead to meaningful, long-term change in the circumstances of poor childrens lives and the ability of schools to work with them.
Ultimately, it is necessary to consider whether the apparent success of Ruby Payne and her organization represents a failure on the part of teacher educators and the many social science researchers who have addressed the connections between poverty and schooling over the past several decades. After all, if thousands of professional educators have been misinformed to one extent or another by Paynes analytical framework, it is at least partly because the training they received in colleges and universities did not prepare them to critically assess its problems. If teachers and principals lack an understanding about how poverty and social class affect childrens education, it may be because their own professional education provided little information or theory for them to draw upon for this purpose. At the same time, researchers focusing on these issues have not contributed to the development of successful in-service education programs that acknowledge the realities and needs of teachers and other education professionals in the classroom. Ruby Payne has thus filled a critical vacuum in the field. This, too, explains some of her success. Where others have been uninterested or perhaps unable to help teachers understand just how poverty and education are related, Payne and her collaborators have been quite willing to step into the breach.
Perhaps it is time for the research and teacher education community to take up the challenge of poverty and begin to engage the questions that Ruby Payne has addressed so actively for the past decade or so. This is not an easy undertaking since the links between poverty and schooling are far from fully understood. As a number of studies have noted, the particular mechanisms that account for why some individuals and families end up in poverty and remain there for any length of time are still poorly comprehended (Sawhill, 1988). Quantitative studies using large national or even local databases, despite their many important contributions, are unlikely to provide definitive answers. As the authors of a chapter on intergenerational transmission of poverty in the Duncan and Brooks-Gunn volume note, While we know that growing up poor reduces childrens economic mobility, these analyses tell us little about why (Corcoran & Adams, 1997, p. 514). In their concluding chapter, Duncan and Brooks-Gunn refer to the absence of strong relationships between parental income and school performance in quantitative studies as an enigma (Duncan & Brooks-Gunn, 1997, p. 603). More fine-grained analyses of the effect of schooling and development of children living in poverty are needed before answers to these questions can be generated.
While teachers and schools do have an important role in addressing issues of educational opportunity and equity for poor children, much additional research will be necessary before effective programs of professional assistance for them can or should be undertaken. Ruby Paynes program, while doubtless well intentioned, is not based on a sound or thorough understanding of poverty and its causes. However, if her efforts to address the difficulties educators face in working with poor children generates increased research attention and a resolution to better connect researchers findings with educators instructional concerns, then perhaps her work will turn out to have been significant indeed.
Abell, T., & Lyon, L. (1979). Do the differences make a difference? An empirical evaluation of the culture of poverty in the United States. American Ethnologist, 6(3), 602621.
Books, S. (2004) Poverty and schooling in the U.S.: Contexts and consequences. Mahwah, NJ: Lawrence Erlbaum.
Brady, D. (2003). Rethinking the sociological measurement of poverty. Social Forces, 81(3), 715752.
Brooks-Gunn, J., Duncan, G. J., & Maritato, N. (1997) Poor families, poor outcomes: The well being of children and youth. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp. 117). New York, NY: Russell Sage.
Carmon, N. (1985). Poverty and culture: Empirical evidence and implications for public policy. Sociological Perspectives, 28(4), 403417.
Conley, D. (1999). Being black, living in the red: Race, wealth, and social policy in America. Berkeley, CA: University of California Press.
Corcoran, M. & Adams, T. (1997). Race, sex and the intergenerational transmission of poverty. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp. 461517). New York, NY: Russell Sage.
Coward, B. E., Feagin, J. R., & Williams, Jr., J. A. (1974). The culture of poverty debate: Some additional data. Social Problems, 21(5), 621634.
Davidson, C. & Gaitz, C. M. (1974). Are the poor different? A comparison of work behavior and attitudes among the urban poor and nonpoor. Social Problems, 22(2), 229245.
Duncan, G. J., & Brooks-Gunn, J. (1997). Income effects across the life span: Integration and interpretation. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp. 596610). New York, NY: Russell Sage.
Gans, H. J. (1995). The war against the poor: The underclass and antipoverty policy. New York, NY: Basic Books.
Hanson, T. L., McLanahan, S., & Thomson, E. (1997). Economic resources, parental practices, and childrens well-being. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp. 190238). New York, NY: Russell Sage.
Harrington, M. (1962). The other America: Poverty in the United States. New York, NY: Macmillan.
Hernandez, D. J. (1997). Poverty trends. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp.1834). New York, NY: Russell Sage.
Irelan, L. M., Moles, O. C., & O'Shea, R. M. (1969). Ethnicity, poverty, and selected attitudes: A test of the culture of poverty hypothesis. Social Forces, 47(4), 405413.
Jaynes, G. D. (2000). Identity and economic performance. The Annals of the American Academy of Political and Social Science, 568(3), 128139.
Jencks, C. (1972). Inequality: A reassessment of the effect of family and schooling in America. New York, NY: Basic Books.
Jones, R. K., & Luo, Y. (1999). The culture of poverty and African-American culture: An empirical assessment. Sociological Perspectives, 42(3), 439458.
Kantor, H. (1999). Race, education, and joblessness in the inner city, 19701990. The Urban Review, 31(3), 225242.
Katz, M. B. (1986). In the shadow of the poorhouse: A social history of welfare in America. New York, NY: Basic Books.
Kaufman, J. E., & Rosenbaum, J. E. (1992). . Educational Evaluation and Policy Analysis, 14(3), 229240.
Lewis, O. (1968). A study of slum culture: Backgrounds for La Vida. New York, NY: Random House.
Massey, D. S., & Denton, N. A. (1993). American apartheid: Segregation and the making of the underclass. Cambridge, MA: Harvard University Press.
Mayer, S. (1997). What money can't buy: Family income and children's life chances. Cambridge, MA: Harvard University Press.
Oliver, M. L., & Shapiro, T. M. (1997). Black wealth/white wealth: A new perspective on racial inequality. New York, NY: Routledge.
Pagani, L., Boulerice, B. & Tremblay, R. (1997). The influence of poverty on childrens classroom placement and behavior problems. In G. J. Duncan & J. Brooks-Gunn (Eds.), Consequences of growing up poor (pp. 311339). New York, NY: Russell Sage.
Payne, Ruby K. (1996). A framework for understanding poverty: Modules 17 workbook. Highlands, TX: aha! Process, Inc.
Payne, Ruby K. (2005). A framework for understanding poverty. Highlands, TX: aha! Process, Inc.
Ranney, D. C. (1999). Class, race, gender, and poverty: A critique of some contemporary theories. In L. Kushnick & J. Jennings (Eds.), A new introduction to poverty: The role of race, power, and politics (pp. 3956). New York, NY: New York University Press.
Roach, J. L., & Gursslin, O. R. (1967). An evaluation of the concept culture of poverty. Social Forces, 45(3), 383392.
Sawhill, I. V. (1988). Poverty in the U.S.: Why is it so persistent? Journal of Economic Literature, 26(3), 10731119.
Sennett, R., & Cobb, J. (1973). The hidden injuries of class. New York, NY: Vintage Books.
Thornton, A., & Young-DeMarco, L. (2001). Four decades of trends in attitudes toward family issues in the United States: The 1960s through the 1990s. Journal of Marriage and the Family, 63(4), 10091037.
Wilson, W. J. (1987). The truly disadvantaged: The inner city, the underclass, and public policy. Chicago, IL: University of Chicago Press.
Wilson, W. J. (1996). When work disappears: The world of the new urban poor. New York, NY: Alfred A. Knopf.
Zeichner, K. M. (2003). The adequacies and inadequacies of three current strategies to recruit, prepare, and retain the best teachers for all students. Teachers College Record, 105(3), 490519.


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mir mēr [key], former Russian peasant community. The mir, which antedated serfdom (16th cent.) in Russia, persisted in its primitive form until after the Russian Revolution of 1917. In a community of free peasants the land was owned jointly by the mir; in a community of serfs, lands reserved for serf use were assigned to the mir for allocation. The mir, like a corporate body, had an assembly, obligations, and rights; it was responsible for allocating the arable land to its members and for reallocating such lands periodically. Woodlands, pastures, and waters were used jointly. With the abolition of serfdom in 1861 (see Emancipation, Edict of) land was allotted, not to individual peasants, but to the mir. The amount of land allotted, however, was insufficient to support the number of people on the land. Also, retention of the mir perpetuated archaic agricultural methods. After the Revolution of 1905, Stolypin introduced reforms that he hoped would lead to the breakup of the mir. The reforms (1908) were not wholly effective, but many mirs were broken into individual holdings. After the Bolshevik Revolution in 1917, the mir remained the basis for local administration and tax collection in the rural areas. With the imposition of collectivization in 1928–9, the mir was abolished and the collective farm was introduced.
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2023, Columbia University Press. All rights reserved.
See more Encyclopedia articles on: Russian, Soviet, and CIS History

subset: commoncrawl


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Eriese Tisdale arrested 2 years before fatal shooting of Sgt. Gary Morales
Suspect in shooting seen on dash-cam video cursing, laughing at cops
Two-and-a-half years before Eriese Tisdale is alleged to have shot and killed St. Lucie County Sheriff's Office Sgt. Gary Morales, Tisdale was pulled over by police in Port St. Lucie.
Officer Keith Boham made the arrest after spotting Tisdale driving with an expired license.
"He continues," Boham recalled. "I turned on my sirens, and you can see we made a complete circle."
The traffic stop happened in 2010, but the 45-minute dashboard camera video gives rare insight into the mind of an accused cop-killer.
During the traffic stop, Tisdale threatens the arresting officers.
"Man, f*** y'all," Tisdale shouts as he is taken into custody. "I should have put that fire in y'all crackers, man."
Eventually, Tisdale calms down. Police find marijuana in his vehicle, and Tisdale begins laughing for minutes on end.
At one point he even makes jokes at the officers.
"The entire (traffic) stop was a joke to him," Boham said.
During the ride to the county jail, Tisdale tells the story of his friend, whom he claims was shot and killed by police in Palm Beach County.
"I just remember hearing gunshots," Tisdale says in the recording. "He just shot the man for no ****ing reason."
Tisdale also tells the arresting officers about his ambitions in life, saying he wants to start his own business.


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Hax: Show family what home is
Dear Carolyn:
My family consists of 20-plus people. Every Thanksgiving we gather at my sister's house and Christmas at mine.
Our niece, who is divorced, has three children, but two are adults so they only show up later to snack and I guess visit us. Her youngest is under 10 so she brings him, and if she has a boyfriend at the time, she asks if it's OK to bring him.
I am getting tired of meeting these guys only to find out she is no longer with them and/or they have hurt her. How do I gently tell her I no longer want to meet or have these short-term boyfriends in my house? Any gentle advice is appreciated.
— Anonymous
Dear Anonymous:
Can it be gentle if it denies you the thing you want?
This short letter hints at chaos in your niece's personal life; if nothing else, there's some swirling mix of poor choices, poor treatment and sketchy priorities when it comes to men. Plus a kid who's still very young.
And while I sympathize fully with the impulse to insulate yourself from this pain (her emotional pain, your pain in the butt), I'm not really worried about you, or the other 17-ish people who are holiday bystanders to this chaos. My worry stands with the son who has no say in what for him is the daily presence of an ultimately transient figure who eventually dumps on his mom.
I also feel for the niece, though she at least has the power to help herself. Here's hoping she wakes up and uses it.
In these situations, one of the strongest forces of love and stability — as in, the soil in which healthy choices take root — is an extended family that acts as a safe place, a patient example, a steady source of compassion where put-downs too often preside. No matter how you phrase it, nixing the boyfriends will come out as a request that she keep her trash out of your house, and that's not building her up.
Not for nothing, you also can't know when one of these boyfriends will become the one who stays.
For the sake of her emotional health and her son's, show them what good treatment feels like and what the word "home" represents. You can't make them get that message, much less apply it, of course — but you can set it down before them every chance you get.
Dear Carolyn:
How do you deal with a spouse who has been angry at you for almost a year for not attending a family function? They give the silent treatment or have just superficial conversation, come and go as they please but expect you to cook dinner. When you want to discuss issues, you're met with agitated body language.
— Silent Treatment
Dear Silent:
You stop cooking dinner, for one, unless you're already planning to cook for yourself. Micro answer.
Macro answer: … and you stop waiting for this spouse to make everything better. Instead, figure out what you can do on your own to improve your life, then do it (just make sure it passes the don't-become-a-headline test).
Anyone who takes vows has to honor the marriage, but you do get to decide how long is long enough to be the only one willing to try.


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The Wildland Fire Program protects the lives, property, & resources of the NPS in a manner which also allows for the natural role of fire on the landscape.
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Posts Tagged 'known'
Acceptance & Vulnerability
The Fear of Being Seen One of my oldest, strongest longings is the desire to be deeply known. This might surprise people who knew me as a child, because I was very reserved in most settings and rarely offered up information about myself. In fact, the thought of drawing people's attention terrified me. I read…Read More


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BIEBER: 'I'm Officially Retiring'
Jutsin Bieber dropped a bombshell on Christmas Eve.
The 19-year-old singer announced to his nearly 50 million Twitter followers that he is retiring -- with little explanation.
My beloved beliebers I'm officially retiring— Justin Bieber (@justinbieber) December 25, 2013
The media talks a lot about me.They make a up a lot of lies and want me to fail but I'm never leaving you, being a belieber is a lifestyle.— Justin Bieber (@justinbieber) December 25, 2013
Be kind loving to each other, forgive each other as god forgave us through Christ Merry Christmas IM HERE FOREVER— Justin Bieber (@justinbieber) December 25, 2013
The singer pulled a similar stunt last week, joking in a radio interview that he would call it quits after the release of his "Complete My Journals " album on Monday.
Bieber's new documentary movie "Believe" opens Christmas Day.
Despite tonight's announcement, we have a feeling Bieber will come out of retirement and get back into the studio very soon.
See Also:
- Sarah Palin Defends 'Duck Dynasty' Star's Anti-Gay Remarks In Heated Facebook Post
- How Miley Cyrus Killed 'Hannah Montana' And Created An Uncharted New Career Path
- 'Duck Dynasty' Star Says 'Homosexuality Is A Sin' In Explosive New Interview And Now Everyone Is Furious
SEE ALSO: The True Story Behind Mariah Carey's 'All I Want For Christmas'


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I have learned that Amka means "to wake" in Swahili. (This information is on every site where the line is sold). And I agree that Jo Wood's Amka possesses a lively quality, but it is soothing as well. I wear it to bed frequently because frankly, its lack of sillage and faint lasting power are good for the late night hours. I love crawling into bed after a bath, having just hydrated my skin with the Amka Body Oil and spritzed my skin with the Body Dew. I guess ultimately that is how I appease my heartbreak that this fragrance just does not last. Sad, but true. Because I love this scent so much.
Now that I have lamented its ephemeral quality, let me tell you why I still love it. I said it's lively. This is due to the effervescent neroli Jo Wood has chosen. It's slightly spicy, bursting with a piquant citrus aroma, yet mellowed by a beautiful warm cedar that envelops the neroli charge ever so perfectly. These opposing qualities have been balanced harmoniously. It is such a special fragrance that I am willing to forgive its transient nature, and enjoy its short-lived comfort and tranquility.
I know not everyone will have this kind of patience given its steep price tag. But take into consideration that Jo Wood has sustainable organic standards, and follows strict ECOCERT guidelines. She never uses petroleum products, phthalates, or parabens in her natural products. (See her website for more detailed information). Also, I have found the best way to get the scent to last. I spray either the Body Dew or the Eau de Toilette (EdT) in my hair and then very liberally on my skin after applying the Body Oil, to get about an hour of scent time. I know, remember reading above about how much I love this perfume?
The difference between the EdT and the Body Dew is the EdT is softer and more floral, whereas the Body Dew has more cedar. Additionally, I'd say the EdT lasts longer on my skin; I can squeak out maybe two hours. But keep in mind that it wears very close to the skin. The Amka line includes the EdT, Body Dew, Body Oil, Body Lotion and Bath Oil. As an aside, the Body Oil is rich and luscious. It is very hydrating, and soaks into skin after about two minutes. The scent evokes the neroli, but the cedar is deeper and there are more hints of the rose otto than in the EdT or the Body Dew. And take note, I do not recommend the lotion. The texture is very watery and separates easily. Mine was quickly returned.
Jo Wood Amka is available at Beautyhabit.com
Posted by ~Trish


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Editor: Kevin D. Anderson, CPA, J.D.
Real Estate
Effective for tax years beginning after Dec. 31, 2012, Sec. 1411 imposes an additional 3.8% tax on "net investment income" of individuals, trusts, and estates. The tax is imposed on the lesser of the net investment income amount or the excess of the taxpayer's modified adjusted gross income (MAGI) over a "threshold amount." For individuals, the threshold amount is $200,000 ($250,000 for joint filers and $125,000 for married individuals filing separately).
Net investment income, as defined in Sec. 1411(c) and Prop. Regs. Sec. 1.1411-4, encompasses portfolio income, such as interest, dividends, royalties, and capital gains, as well as income from the business of trading in financial instruments or commodities. The definition also includes rental income unless the income is derived in the ordinary course of a trade or business as defined in Sec. 162 and is not subject to the passive activity loss rules of Sec. 469.
Proposed Regs. Refer to Secs. 162 and 469
Proposed regulations under Sec. 1411 (REG-130507-11) provide that whether a taxpayer's activity is considered passive for purposes of the 3.8% tax is determined in accordance with the principles of Sec. 469, which deals with the disallowance of passive activity losses. In addition, the proposed regulations state that "trade or business" for purposes of Sec. 1411 has the same meaning as under Sec. 162, which permits deduction of ordinary and necessary expenses paid or incurred in carrying on a trade or business.
Trade or Business Under Sec. 162
Under Secs. 162(a) and 62(a)(1), a taxpayer's adjusted gross income is computed by deducting all ordinary and necessary expenses incurred in carrying on a trade or business. "Trade or business" in this context, however, has not been defined in the Code, regulations, or IRS guidance. Thus, there are no uniform standards, and the determination whether a taxpayer's activities qualify as a trade or business is made on a case-by-case basis. Nonetheless, the preamble to the proposed regulations notes that "[t]he most established definition of trade or business is found under section 162(a)…. The use of the section 162 definition of trade or business facilitates administration of section 1411 and should simplify taxpayer compliance."
The Supreme Court has identified regularity (i.e., activity over a certain period) and a profit motive as factors that the courts have widely accepted as indicating the presence of a trade or business. The Court in Groetzinger, 480 U.S. 23, 35 (1987), said, "We accept the fact that to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity and that the taxpayer's primary purpose for engaging in the activity must be for income or profit." (See also Higgins, 312 U.S. 212 (1941); Stanton, 399 F.2d 326 (5th Cir. 1968); and Dagres, 136 T.C. 263 (2011).)
However, determining the extent of activity required for the rent and management of real property to reach the status of a trade or business is particularly difficult. When is a taxpayer owning rental properties considered to be in the trade or business of renting real estate? The IRS discussed the concept of real estate trades or businesses in Letter Ruling 9840026 in the context of Sec. 108(a)(1)(D), which allows taxpayers to exclude cancellation-of-debt income if the debt is incurred or assumed in connection with, and is secured by, real property used in a trade or business. In the letter ruling, the IRS acknowledged that there are no uniform gauges and concluded:
The issue of whether the rental of property is a trade or business of a taxpayer is ultimately one of fact in which the scope of a taxpayer's activities, either personally or through agents, in connection with the property, are so extensive as to rise to the stature of a trade or business.
Real Estate Trade or Business Under Sec. 469(c)(7)
Sec. 469(a) generally disallows any passive activity loss for a tax year. A passive activity is defined as any trade or business in which a taxpayer does not materially participate. Under Sec. 469(c)(2), a rental real estate activity is generally treated as a per se passive activity regardless of whether the taxpayer materially participates.
However, Sec. 469(c)(7) and Regs. Sec. 1.469-9 provide an exception under which the rental activities of a taxpayer who is considered a real estate professional are not treated as per se passive activities. Instead, the rental activities are treated as a trade or business and are subject to the material participation requirements to be considered nonpassive for purposes of Sec. 1411. Under Sec. 469(c)(7)(B), a taxpayer is considered a real estate professional if:
- More than half of the personal services performed in trades or businesses by the taxpayer during the year are performed in real property trades or businesses in which the taxpayer materially participates; and
- The taxpayer performs at least 750 hours in real property trades or businesses in which he or she materially participates.
Under Sec. 469(h)(1), a taxpayer is treated as materially participating in an activity only if the taxpayer is involved in the operations of the activity on a regular, continuous, and substantial basis. Material participation is further determined by the taxpayer's meeting at least one of the seven tests in Temp. Regs. Sec. 1.469-5T(a). While most of the tests are quantitative, the seventh test is more subjective and is based on facts and circumstances. This test, similar to the guidelines under Sec. 162, provides that a taxpayer materially participates in a trade or business if the taxpayer participates on a regular, continuous, and substantial basis during the year.
The Tax Court has held that although a taxpayer materially participated in rental activities, where the taxpayer did not qualify as a real estate professional, his real estate activities were per se passive (Ani, T.C. Summ. 2011-119). Conversely, qualifying for real estate professional status only relieves a taxpayer of the per se passive rule of Sec. 469(c)(2). Absent an aggregation election (discussed below), a taxpayer with more than one rental activity still has to materially participate in each activity.
The preamble to the proposed regulations clarifies the necessity of meeting both the trade or business test and the real estate professional test by addressing how Sec. 1411 interacts with the special rules for taxpayers engaged in real property businesses under Sec. 469(c)(7):
- A taxpayer who qualifies as a real estate professional is not necessarily engaged in a trade or business within the meaning of Sec. 162 with respect to the rental real estate activities.
- If the rental real estate activities are Sec. 162 trades or businesses, the rules in Sec. 469(c)(7) and Regs. Sec. 1.469-9 apply in determining whether a rental real estate activity of a real estate professional is a passive activity for purposes of Sec. 1411(c)(2)(A).
- If the rental real estate activities of the real estate professional are not Sec. 162 trades or businesses, the gross income from rents derived from the activity are not excluded by the "ordinary course of a trade or business" exception under Sec. 1411(c)(1)(A)(i).
Aggregation Rules for Passthrough Entities
The rules make it clear that material participation in an activity conducted through a passthrough entity such as a partnership or an S corporation is determined at the partner or shareholder level, respectively. If a partner or shareholder actively participates in each passthrough entity in varying degrees, absent an aggregation election to group activities, the owner might not meet the material participation requirement for each separate activity.
Sec. 469 allows taxpayers to elect to group trade or business activities into a single activity for purposes of the material participation tests. To do so, the trades or businesses must form an appropriate economic unit under Regs. Sec. 1.469-4. The taxpayer's Sec. 469 groupings must be consistent from year to year unless the facts and circumstances materially change or the taxpayer's original groupings were not appropriate.
The initial Sec. 469 groupings are made by the entity; the owners may then further group activities with their separate activities. Sec. 469 allows this aggregation of income and loss from all passive activities to determine whether a taxpayer has income or loss. If the total aggregation is positive, resulting in rental real estate income, and the taxpayer qualifies as a real estate professional, it appears that the taxpayer must then determine whether the rental income is derived in the ordinary course of a trade or business under Sec. 162 for purposes of the additional 3.8% tax on net investment income.
If the taxpayer elects to aggregate the separate real estate activities and meets the real estate professional test under Sec. 469(c)(7), the taxpayer might continue to be subject to the 3.8% tax if the taxpayer cannot meet the test under Sec. 162. In this case, the positive nonpassive real estate taxable income and the related 3.8% tax cannot be offset by other non–real estate passive losses that are suspended due to the basis rules under Sec. 704(d), the "at-risk" rules under Sec. 465, or the passive activity loss rules under Sec. 469. Once the suspended losses are freed up, they may reduce or eliminate the 3.8% tax in later years.
If a taxpayer has suspended losses from passthrough entities, these losses cannot offset portfolio income from other sources (i.e., interest, dividends, or royalties) to reduce the 3.8% tax. Moreover, losses disallowed under other statutory provisions (e.g., net capital losses under Sec. 1211, the Sec. 212 limitation, related-party losses disallowed under Sec. 267, and partnership disguised sale losses under Sec. 707) cannot offset other passive income items subject to the 3.8% tax.
Implications and Observations
Real estate owners whose properties are profitable must determine whether the income is derived from a nonpassive activity and, if so, whether their activities rise to the level of a trade or business. Only where both conditions are met may the income be outside the scope of the 3.8% tax. A taxpayer owning a building that is triple net leased to long-term tenants might not be able to substantiate an exemption from the net investment income tax on this income stream or on any gain from a sale of the property subject to the triple net lease. On the other hand, a taxpayer significantly involved in the real estate activities may, with proper tax planning and documentation, be able to avoid the 3.8% tax.
The proposed regulations under Sec. 1411 do not provide a definition of "trade or business" for purposes of taxpayers engaged in rental real estate activities and thus potentially subject to the tax on net investment income on income from these activities. Going forward, the practical application of Sec. 1411 and subsequent judicial and IRS guidance may bring clarity to the definition of a trade or business for purposes of real estate activities. It is also hoped that some clarity will be brought to the interaction of the aggregation rules with the "ordinary and necessary" business expense test under Sec. 162.
Kevin Anderson is a partner, National Tax Services, with BDO USA LLP, in Bethesda, Md.
For additional information about these items, contact Mr. Anderson at 301-634-0222 or email@example.com.
Unless otherwise noted, contributors are members of or associated with BDO USA LLP.


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21 April, 2013 — RT
The whole world is now rehearsing the exotic names of the main suspects fingered as the 'Boston bombers': Tamerlan and Dzhokhar. The two young men have been treated with 'celebrity' attention by the media as the public is struggling to define the motives and circumstances that led to their recent actions. After a dramatic and near unprecedented manhunt for the Tsarnaev brothers – accused of staging the Boston Bombings – what appears most clear is that very little clarity surrounds the case.
Tamerlan Tsarnaev (Image from vk.com)
The younger of the two – Dzhokhar – is in hospital with severe wounds he supposedly received from police after an extensive Friday night manhunt. His older brother Tamerlan was killed during the manhunt. He is said to have been wounded from head to toe when he was rushed into a hospital where he later died.
Also, he was reportedly wearing a suicide bomber's belt.
The 19-year old Dzhokhar was between life and death, 'intubated and sedated' with a throat wound. Boston Mayor Tom Menino voiced concerns Sunday that authorities might never be able to question him at all.
One thing remains unclear though – how the young man could walk out of the boat he was hiding in already with a throat wound that he was later almost dying from.
Since then, Dzhokhar has regained consciousness and is reportedly answering the police questions by writing.
Meanwhile, the FBI is actively searching for the two brothers' 'terror links', scrutinizing Tsarnaevs' contacts. However, so far there are more questions to the story than answers.
First, the 'Chechen link'. Being ethnically Chechens, the brothers spent very little time in their historic motherland in the mountains of Caucasus. The reaction of the Republic authorities can be summed up as 'We don't know them, we have not heard of them'.
The former Soviet State of Kyrgyzstan was the family's homeland for many years before the brothers emigrated to the US to receive a refugee status. Kyrgyz authorities confirmed the fact, saying they the Tsarnaevs left the country in 2001. While in Kyrgyzstan, the family lived in a town of Tormok, predominantly ethnically Chechen. 'Kyrgyz' Chechens were sent there on the orders of Joseph Stalin in 1944 amid the accusation – or pretext – of cooperating with the Nazi's.
The Tsarnaev's parents, after a few years in the US, are currently living in Dagestan, another turbulent republic in Russia's south that draws a lot of active attention from the security forces. It might be believed to have some of the strongest and most conservative Muslim communities in the country but so far does not seem to have enough to qualify as a 'radical Islamic breeding spot'.
When asked about the motives behind their moving to the US, the father of the family, Anzor Tsarnaev, said:
"Chechens are stereotypically not welcome in so many places. We hoped the US will be the place to leave peacefully and free from judgment. Now I see it was a mistake".
Tsarnaev senior believes his children have been framed. He says it's impossible that they could do something like that.
"I'm sure about my children, in their purity. I don't know what happened and who did this. God knows and he will punish the guilty," he said.
An RT' team flew to Dagestan to speak to Tsarnaevs' parents and neighbors. The psychological 'portrait' of the two brothers has little to do with what has been ascribed to them. Open and respecting, calm and friendly, the two brothers are described by people who've known them for some time in often the best terms. The news of their involvement in the Boston bombing has largely been met with shock.
"I lived next to this family both in Chechnya and here, in Dagestan," the neighbor told RT. "Their kids couldn't have done that, they couldn't have been involved."
Also read: 'Tamerlan was not a religious fanatic' – Tsarnaevs' relative to RT
A similar reaction was heard in outpourings from those who knew them in America.
"I'm in complete shock," Rose Schutzberg, 19, who graduated high school with Dzhokhar told USA Today. "He was a very studious person. He was really popular. He wrestled. People loved him."
None of the people around them had any suspicion something of this sort was cooking up. The only concern was that the brothers did not actually feel integrated into American society, judging by their comments made known to the public.
"I don't have a single American friend," Tamerlan said in a photo essay about his love of boxing. "I don't understand them."
Before refusing to give anymore interviews, the mother of the two, Zubeidat Tsarnaeva talked to RT and expressed confidence her sons were framed by the FBI, alleging that they had been following Tamerlan in particular for at least 5 years.
"They were controlling him, they were controlling his every step…and now they say that this is a terrorist act! Never ever is this true, my sons are innocent!" the mother exclaimed.
It would be indeed strange to suggest somebody so closely watched by the FBI could have plotted terrorist acts without setting off alarm bells. The FBI, however, has in the past been accused of enticing socially-aloof Muslims into plotting a terror act and then 'disclosing' and jailing them, claiming they just saved the world from another villain (watch Fox News report). Could it be another such case that went incredibly wrong?
So far the investigation has failed to spot and track any 'real people' who could be helping the brothers in their plot.
"I think it's limited to the two brothers," Edward Deveau, the chief of police of Watertown, said. "Every information that I have been seeing, where we looked at Boston, Watertown, the greater New England area, is safe."
Little has been gathered from the Tsarnaev's online activity. The US media is sending panic waves that Tamerlan had been visiting extremist web-sites and was becoming affiliated with conservative (you may read it as radical) Islam. However – there is again little proof of that in real life. For starters, the brothers are barely known in their local (or any other) mosque.
"The brothers were members of our community in Cambridge," the head of the local Muslim center told RIA-Novosti. "They wouldn't come very often and they had never expressed any radical views."
Tamerlan is said to have set up a YouTube playlist that he labeled 'Terrorist'. This and his visits to what is considered a radical source Kavkazcenter.com made the investigation suggest he could be linked to the notorious terrorist Doku Umarov. However, the website has denied any link to the Boston Marathon bombings that have been blamed on the brothers.
"The command of the Vilayat Dagestan Mujahidin… declares that the Caucasus fighters are not waging any military activities against the United States of America. We are only fighting Russia," the Kavkazcenter.com website said in an official statement.
At the same time, Tamerlan failed to get hold of an American passport, instead obtaining just a Green Card. The New York Times reports his citizenship was held up because of an FBI interview in 2011 and not because of a domestic abuse episode – where he is said to have hit his girlfriend.
He still got married in the US – to Katherine Russell, who converted to Islam for him. The couple has a little daughter. Both the woman and the girl are choosing to hide out the media storm at Katherine's parents.
The US media speculate that Tamerlan started to cling to radical Islamist ideas when already in the US, but cemented his beliefs while traveling to Russia (Chechnya and Dagestan) in 2012. His parents confirm nothing of this sort, saying he traveled to renew his Russian passport and decided to prolong his stay.
Tsarnaevs' father, Anzor, is confirmed to be en route to the United States to be with his remaining son in hospital and try to iron the details of his arrest.
Now, however hard the FBI is trying to connect the dots, they still hardly can. Two young successful friendly men, the joy and pride of their family, with no history of radicalism, all of a sudden choose to commit a terror attack. No 'Allah Akbar' calls, no radical organization affiliation, not a hint of hatred noticed by those close to them. Tamerlan leaving a family behind, Dzhohar just a regular teenager with seemingly common teenage interests. Their actions have not brought around any evident benefit to either of them.
Moreover, it has sent curses and sorrow into their families' lives, especially back in Russia since the traditional Caucasus cultures focus on immense respect towards parents, where fathers and mothers are idolized and honored by the younger generation – and are expected to take responsibility for their children's action no matter what the age.
Nobody is saying Tamerlan and Dzhokhar Tsarnaev didn't do what everybody is saying they did – nor the police words of violent resistance to arrest which caused further fatalities. It's just their action looks bizarre and illogical based on how they lived their lives.
Anna Priemysheva, RT


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WEDNESDAY, Feb. 6, 2013 (HealthDay News) -- Migraine sufferers in search of a non-medicinal alternative for relief may be encouraged by new Belgian research that suggests that 20 minutes a day of nerve stimulation might cut back on the frequency of attacks.
The finding stems from a small study involving 67 migraine patients. All participants were outfitted with a wearable device called a "supraorbital transcutaneous stimulator," or STS, which was placed on the forehead and designed to deliver electrical stimulation to the patient's supraorbital nerve.
Use of the stimulator device was found to be "effective and safe as a preventive therapy for migraine," according to the study.
Study lead author Dr. Jean Schoenen, of the headache research unit in the department of neurology & GIGA-neurosciences at Liege University, and colleagues described the team's findings in the Feb. 6 online issue of Neurology.
Study participants were aged 18 to 65 and were being treated for migraines at one of five headache clinics in Belgium. All routinely experienced a minimum of two -- and an average of four -- migraine attacks per month. Although some had previously tried standard drug-based treatments, none had been taking any type of preventive chronic anti-migraine treatment in the three months leading up to the study launch.
Between 2009 and 2011, the patients were randomly divided into two groups. Both were given identical self-adhesive stimulation electrode pads to place on their forehead for 20 minutes daily over a three-month period. However, one group's electrode was a sham device that exerted an ineffectively weak electrical pulse, while the second group wore a working supraorbital transcutaneous stimulator.
Participants kept migraine diaries, which revealed that although migraine severity did not decrease much, by the third month of the study, those using the working devices saw the frequency of their attacks drop from about seven per month to fewer than five.
Sham device users experienced no such drop-off.
In addition, 38 percent of the working device users saw their attacks drop off by half or more, compared with 12 percent for those using fake stimulators.
Monthly use of anti-migraine drugs to cope with migraine attacks when they occurred dropped by nearly 37 percent among supraorbital transcutaneous stimulator users, with no drop among the sham group.
Schoenen and her associates said that the exact mechanism by which electrical stimulation seems to help migraine sufferers remains unclear, though they suggested it might have something to do with the neurological prompting of a "sedative effect."
Perhaps most important was the finding that none of the stimulator users experienced any side effects.
The researchers point to a previously conducted analysis of studies focusing on the impact of taking a 100-milligram dosage of topiramate -- a standard migraine drug. That analysis showed that the drug was considerably more effective than the nerve stimulator devices in its ability to reduce the frequency of monthly attacks.
At the same time, however, the analysis revealed that half of all topiramate patients had experienced drug-related side effects, compared with none among the stimulation device users. A quarter of all topiramate patients had ended up dropping the drug altogether due to the harshness of the side effects.
Commenting on the new study findings, Dr. Gretchen Tietjen, chair of neurology at the University of Toledo Medical Center in Ohio, and director of the center's headache treatment and research program, said: "It's certainly true that for some people side effects are really problematic. Depending on the class of medication, there can be problems with weight gain, hair loss, thinking, sedation, dry mouth, fatigue, dizziness, light-headedness and, for men, particular sexual side effects."
Tietjen added, "So there are a lot of very real issues here. And looking for other approaches like this definitely makes sense."
Study author Schoenen noted that apart from Belgium, the supraorbital transcutaneous stimulator is currently also available in France and Canada, while the U.S. Food and Drug Administration approval process is still "ongoing."
Meanwhile, several different follow-up investigations are planned. One will look at the device's impact on patients who suffer more frequent (chronic) migraines, while another will explore a newer stimulation approach in which a similar device will target the suboccipital nerve (also found in the head) in addition to the supraorbital nerve.
That said, Schoenen cautioned that as a practical matter the cost of the device in question is "not trivial," currently priced in Belgium at 300 Euro (about $400). She suggested that patients considering the intervention might want to start out by renting the stimulator for two to four months, to see whether or not they realize any benefits before making a purchase.
More information
For more on migraines, visit the U.S. National Library of Medicine.


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Heeeere's Conan! The former longtime host of "Late Night" and abbreviated presenter of "The Tonight Show" moves his talk show act to the cable arena, where he becomes the staple of TBS' late-night talk show lineup. Making the transition to basic cable with Conan is his on-again, off-again sidekick/announcer, Andy Richter. Said O'Brien in his typical dry tone, "In three months I've gone from network television to Twitter to performing live in theaters, and now I'm headed to basic cable. My plan is working perfectly."
- Cheeky
- Witty