From Prosperity Now (https://prosperitynow.org/):
While it is widely understood that the Tax Cuts and Jobs Act (TCJA) was constructed to make the rich even more rich, the legislation’s effect on the ever-growing racial wealth divide has been largely underreported, if noticed at all.
To fill that knowledge gap, Prosperity Now and the Institute on Taxation and Economic Policy (ITEP) released a new report, Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide.
As featured by Jim Tankersley in today’s New York Times, our joint study finds that the TCJA not only adds unnecessary fuel to the growing problem of overall economic inequality, but also supercharges America’s already massive racial economic inequality to an alarming extent.
Among some of the study’s most significant findings, we found that:
Of the $275 billion in tax cuts the TCJA provides to individuals this year, $218 billion (80%) goes to White households. On average, White households will receive $2,020 in cuts, while Latino households will receive $970 and Black households will receive $840.
More than 40% of all tax cuts from the Tax Cuts and Jobs Act go to the White households in the top 5% of earners, despite only representing 3.9% of all tax returns.
In a single day, the richest 1% of taxpayers get a larger tax cut ($131) from the Tax Cuts and Jobs Act than the poorest families receive in one year ($90).
Even among the super wealthy, the disparity is alarming. White households in the top 1% will receive an average tax cut of $52,400 a year from the TCJA. Black, Latino and Asian households will receive $19,290, $19,850 and $35,690, respectively.
Please help us equip advocates with the data they need to fight for a fairer economy by reading and sharing Race, Wealth and Taxes today. To help you share the report, we’ve also put together a list of infographics, shareable images and pre-written posts.
Thank you for all you do to advocate for a more equitable and prosperous U.S. economy.
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