Dec 14

Families of color would lose big under proposed GOP tax plans, analysis finds


The tax plans under consideration by the GOP-controlled Congress would disproportionately harm families of color, according to an analysis by the Wisconsin Budget Project.

“A growing level of resources is concentrated in a very small number of hands, a trend that would be exacerbated if Congress passes one of the federal tax bills currently under consideration,” the organization says. “Both versions of the bill expand the already-significant ability of extremely rich families to keep wealth within their own circles, a move that would contribute to the widening chasm between the very wealthiest and everybody else and would place additional obstacles to economic security in the path of families of color.”

Already, it says, white families have a much higher net worth than families of color. For example, the typical college-educated white family had a net worth of $397,100 in 2016, according to the Survey of Consumer Finances. That is more than five times the wealth that a typical college-educated African-American family ($68,200) or Latino family ($77,900) held.

Families of color are especially likely to get caught in this “wealth gap” cycle, which can largely block them from methods of wealth accumulation that are available to other families, and the GOP tax plans would only worsen the situation.

Read the entire analysis:

Federal Tax Plans Would Drive another Economic Wedge between White Families and Families of Color