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New Report Exposes Tax System’s Role in Widening Racial Wealth Gap, Calls for Urgent Reforms

NNPA NEWSWIRE — The message from Color of Change and Americans for Tax Fairness is clear: America’s tax system is broken, and without immediate reforms, the racial wealth gap will continue to widen. “Addressing the insidious racial preferences in our tax code is one of the most direct ways we can not only help Black communities grow here and now but for generations to come,” concludes Color of Change Managing Director Portia Allen-Kyle.

Published

4 months ago

September 10, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Color of Change, the nation’s largest online racial justice organization, and Americans for Tax Fairness released a damning report Thursday exposing the deep racial inequities entrenched in the U.S. tax system.

The issue brief “How Tax Fairness Can Promote Racial Equity,” written by Color of Change Managing Director Portia Allen-Kyle and Americans for Tax Fairness Executive Director David Kass, exposes the systemic flaws in tax policy that have widened the racial wealth gap and prevented economic mobility for Black, brown, and Indigenous communities.

The report urgently calls for sweeping reforms to stop the flow of tax benefits to the wealthiest Americans — who are overwhelmingly white — while offering concrete solutions to make the tax code work for everyone, not just the top 1%.

“An equitable tax system does two things,” Allen-Kyle asserted. “It narrows the racial wealth gap from the bottom up and spurs economic mobility for Black, brown, and Indigenous individuals and families. Our current tax code fails on both accounts. It’s a prime example of how so-called ‘colorblind’ systems actively prevent Black families from building generational wealth and economic security.”

Tax Code Deepens Racial Disparities, Experts Say

The brief pulls no punches in describing how current tax policies disproportionately benefit wealthy white families, further deepening racial inequalities. By giving preferential treatment to wealth over work, the system locks in economic advantages for white households while leaving communities of color to bear the brunt of these inequities.

“Our tax system is not only failing to address racial wealth inequality, it’s exacerbating it,” Kass warns in the report. “We privilege wealth over work, fail to adequately tax our richest households and corporations, and allow inherited fortunes to compound unchecked by taxation. This perpetuates a legacy of racial inequality.”

The racial wealth gap has exploded in recent years, with the median wealth gap between Black and white households jumping from $172,000 in 2019 to over $214,000 in 2022. Economic crises such as the Great Recession and the COVID-19 pandemic further entrenched these divides, benefiting the already wealthy, while leaving Black, brown and Indigenous communities further behind.

The Racial Wealth Gap and Homeownership

Homeownership, long touted as a primary means of building wealth in America, has failed to deliver for Black families. The report points to factors such as biased home appraisals and a regressive property tax system as key reasons why Black homeowners have been unable to accumulate wealth at the same rate as their white counterparts.

As the brief notes, with critical provisions of the Tax Cuts and Jobs Act (TCJA) set to expire, now is a pivotal moment for tax reform. “We have a once-in-a-generation opportunity to reform our tax system to address racial inequality,” the report states, comparing recent monumental legislation like the Bipartisan Infrastructure Law and the Inflation Reduction Act.

Three Key Reforms to Tackle Racial Inequity

The report lays out three central reforms aimed at curbing the wealth concentration among the ultra-rich and dismantling the racial inequities baked into the tax code:

Taxing Wealth Fairly: The report calls for equalizing the tax rates on wealth and work. Currently, capital gains — profits from investments — are taxed at a far lower rate than wages earned by working people, a disparity that overwhelmingly benefits white households. The vast majority of capital gains income flows to white families, who comprise only two-thirds of taxpayers but receive 92% of the benefits from lower tax rates on investment income.
Strengthening the Estate Tax: The estate tax, which is supposed to curb the accumulation of dynastic wealth, has been weakened over time, allowing large fortunes — primarily held by white families — to grow even larger across generations. The report calls for stronger enforcement of the estate tax to prevent the further entrenchment of wealth and power within a small, overwhelmingly white elite.
Targeting Tax Deductions to Benefit Lower-Income Households: Deductions for mortgage interest, college savings, and retirement accounts disproportionately benefit wealthier, predominantly white households. In order to prevent lower-income and minority households from falling behind due to policies that are currently biased in favor of the wealthy, the brief advocates for restructuring these deductions.

Biden-Harris Administration and Senate Proposals for Change

Both the Biden-Harris administration and Senate Finance Committee Chairman Ron Wyden have proposed addressing the racial wealth gap.

The Billionaire Minimum Income Tax (BMIT) and the Billionaire Income Tax (BIT) would ensure that the wealthiest Americans — who often go years without paying taxes — contribute their fair share. These proposals would raise over $500 billion in revenue over the next decade, which could be reinvested in healthcare, education, and housing for communities of color.

As the report points out, our current tax system is skewed in favor of the ultrawealthy. It allows the rich to avoid paying taxes on the increased value of their investments unless they sell them. They often borrow against these growing fortunes, further delaying taxation, which allows white billionaires to accumulate vast wealth while paying a fraction of what working families pay in taxes.

Defending IRS Funding to Hold the Wealthy Accountable

The report also highlights the critical need to defend IRS funding, restored under the Inflation Reduction Act, which is essential for cracking down on wealthy tax cheats.

Contrary to Republican claims, this funding will not increase tax enforcement on households earning less than $400,000. Instead, it will improve customer service and expand the Direct File program, saving taxpayers significant time and money.

The Biden administration’s restored IRS funding is expected to raise an additional $100 billion over the next decade by ensuring the wealthiest Americans and corporations pay what they legally owe.

A Call for Urgent Action

The message from Color of Change and Americans for Tax Fairness is clear: America’s tax system is broken, and without immediate reforms, the racial wealth gap will continue to widen.

“Addressing the insidious racial preferences in our tax code is one of the most direct ways we can not only help Black communities grow here and now but for generations to come,” Allen-Kyle concludes.

Stacy M. Brown

Posts by Stacy M. Brown

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Supreme Court Decision Confirms Convicted Felon Will Assume Presidency

NNPA NEWSWIRE — In a 5-4 ruling, the court stated that Trump’s concerns could “be addressed in the ordinary course on appeal” and emphasized that the burden of sentencing was “relatively insubstantial” given that Trump will not face prison time. Chief Justice John Roberts and Justice Amy Coney Barrett joined the court’s three liberal justices in the majority, with four conservative justices dissenting.

Published

1 week ago

January 10, 2025

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

The Supreme Court on Thursday rejected President-elect Donald Trump’s emergency request to block criminal proceedings in his New York hush money case, ensuring that a sentencing hearing will proceed as scheduled on Friday. The decision makes it official that, on January 20, for the first time in its history, the United States will inaugurate a convicted felon as its president.

In a 5-4 ruling, the court stated that Trump’s concerns could “be addressed in the ordinary course on appeal” and emphasized that the burden of sentencing was “relatively insubstantial” given that Trump will not face prison time. Chief Justice John Roberts and Justice Amy Coney Barrett joined the court’s three liberal justices in the majority, with four conservative justices dissenting.

Trump was convicted in May for falsifying business records related to a $130,000 payment to adult film star Stormy Daniels before the 2016 election. Manhattan District Attorney Alvin Bragg argued that the Supreme Court lacked jurisdiction to intervene in a state criminal case, particularly before all appeals in state courts were exhausted.

Trump’s legal team claimed the sentencing process would interfere with his transition to power and argued that evidence introduced during the trial included official actions protected under the Supreme Court’s prior ruling granting former presidents immunity for official conduct. Merchan, the New York judge who presided over the trial, ruled in December that the evidence presented was unrelated to Trump’s duties as president.

Prosecutors dismissed Trump’s objections, stating that the sentencing would take less than an hour and could be attended virtually. They said the public interest in proceeding to sentencing outweighed the President-elect’s claims of undue burden.

Justice Samuel Alito, one of the four dissenting justices, confirmed speaking to Trump by phone on Wednesday. Alito insisted the conversation did not involve the case, though the call drew criticism given his previous refusals to recuse himself from politically sensitive matters.

The sentencing hearing is set for Friday at 9:30 a.m. in Manhattan. As the nation moves closer to an unprecedented inauguration, questions about the implications of a convicted felon assuming the presidency remain.

“No one is above the law,” Bragg said.

Stacy M. Brown

Posts by Stacy M. Brown

#NNPA BlackPress

How Head Start Installs Confidence for Two Generations

NNPA NEWSWIRE — Head Start is a changemaker for all communities. Child by child, family by family, the seeds that are sowed continue to blossom as they stretch higher and higher toward the sunshine.

Published

2 weeks ago

January 6, 2025

Oakland Post

By Olivia Harvey

The founders of Head Start have always viewed parents as critical partners in their work to educate young children. They also understood that this partnership meant parents should help decide which services would most benefit their families and those in the community. As a result, Head Start created a formal leadership and policymaking role for parents and community members called the Policy Council.

Thank you to Head Start parent, Policy Council member, and alumna Olivia Harvey for recently sharing her story.

A few years ago my daughter Maliya was six years old and had just started kindergarten, after graduating from the Children First Head Start program in Sarasota County, Florida. It was hard to believe we’d reached this major milestone, but with all the love, care, and guidance she received from her incredible teachers, I’m confident that she will continue to blossom and thrive. Children First and the Head Start program have always been close to my heart, and the hearts of my family. My husband Malik is also a proud Head Start graduate along with some members of his family. He’s a wonderful support system and understands our shared mission of raising the healthiest, happiest family possible. Our lives are centered around family, and in addition to Maliya, we also have two other children, our sons Jeremiah and King. When we had our kids, we knew we didn’t have to look far to find quality, affordable childcare with amazing teachers we could trust. With the challenges we were facing, we knew we could turn to Children First’s Head Start program to help us find our path to success.

My family has been involved with Children First since Jeremiah was a toddler. Our family advocate, Ernestine, was there for Maliya and our entire family every step of the way. I know that even when my daughter is in high school, Ernestine will be there in a heartbeat if we ever need anything. The teachers care so deeply about the kids, and they never forget their faces. One day, Maliya came home with a photo taken by her teacher, Miss LaTonda. It was a baby picture of me because Miss LaTonda had been my teacher as well. I couldn’t believe she had kept it for all these years! It was such a special memory to share with my daughter, and it’s moments like this that let me know we will always be a part of the Children First family. Through Head Start, I also found a lot of support personally and as a parent. Due to the pandemic, I had reduced hours and was forced to seek other employment. During this time, I needed something that would allow me to feel professional and help me keep my skills up while at the same time offering me the flexibility to be a mom.

Luckily, Children First was offering a Job Skills Training Course as part of the agency’s Family Strengthening services. The class was perfect because it provided a sense of accountability and belonging. I learned about identifying and overcoming obstacles related to employment, and there was a special focus on resume writing, interviews, and ‘acing’ the first 90 days at a new job, which has benefited me! After a mock interview with my vocational family advocate Laura and her colleagues, I felt so confident with the skills that I had learned, and I decided to reach a higher goal in the workforce. I was offered a position at Sarasota School of the Arts & Sciences, where I have been working as a paraprofessional. While working full-time, I’ve also had the opportunity to go back to school to earn my bachelor’s degree to become a history or math teacher. My ambitions have led me to be a working professional, a full-time mom, and now, a student, but I’m not stopping there. In the future, I would like to earn my master’s degree and work as an administrator, with one of my ultimate goals being to run for the school board.

Because of Children First, Head Start, and my vocational coach, Laura, it feels like a whole new world of possibilities has opened. While I was unexpectedly unemployed but fighting to stay engaged, I was supported every step of the way. Laura and the team at Children First continue to guide me and my family on our journey to success. Although we still face unique challenges, I feel grateful and am so proud of how far we’ve come. Because Malik and I were able to grow and thrive in a healthy environment at the earliest stages of our lives, the lives of our children have been transformed for the better. Right now, some parents, families, and caregivers are struggling financially and socially. They need lower childcare prices, full workday hours with childcare coverage, and free transportation to and from daycare.

Head Start is a changemaker for all communities. Child by child, family by family, the seeds that are sowed continue to blossom as they stretch higher and higher toward the sunshine. Their promise is simple: every child, regardless of circumstances at birth, can reach their full potential. As I look to the future — from my youngest child thriving, to earning my teaching degree, to raising my beautiful children alongside my husband and beyond that, I know that thanks to Head Start, there is nothing to fear.

Oakland Post

Posts by Oakland Post

#NNPA BlackPress

Cold Weather Safety for Children

NNPA NEWSWIRE — Keep babies’ cribs free of stuffed animals and blankets. A firm mattress covered with a tight-fitting crib sheet is all that an infant needs to sleep safely.

Published

3 weeks ago

December 30, 2024

Oakland Post

By The Head Start Early Childhood Learning and Knowledge Center

Children are more vulnerable than adults to the effects of cold weather. The Head Start Early Childhood Learning and Knowledge Center developed these tips to help families and staff keep children safe, healthy, and warm in the winter.

Bundle up!

Children are at greater risk for frostbite than adults. The best way to prevent frostbite is to make sure children dress warmly and don’t spend too much time outside in extreme weather.
Dress children in layers of warm clothing. If the top layer gets wet, they will still have a dry layer underneath.
Tuck scarves inside coats and jackets to prevent them from becoming strangulation hazards.
Car seats and winter coats don’t mix. Bulky coats can compress in a crash and create a loose car seat harness. Instead, lay the jacket or a blanket over the children once you’ve safely strapped them into their car seat.

Keeping Healthy Outdoors

There’s no set amount of time for children to play outside safely when the weather is cold. Use your best judgment. When the cold becomes unpleasant, it’s time to go inside.
If you are unsure if weather conditions are safe for outdoor play, check the Child Care Weather Watch Chart.
- Have children come indoors periodically to prevent hypothermia or frostbite. A temperature of 0 degrees Fahrenheit and a wind speed of 15 mph creates a wind chill temperature of -19 F. Under these conditions, frostbite can occur in just 30 minutes.
- Frostnip is an early warning sign of frostbite. The skin may feel numb or tingly or appear red (on lighter skin).
- To prevent frostbite, check that mittens and socks are dry and warm. Frostbite occurs mostly on fingers, toes, ears, noses, and cheeks. The affected area becomes very cold, firm, and, depending on the color of the skin, turns white, yellowish-gray, or gray.
- Even though it’s cold outside, it’s important to use sunscreen and stay hydrated. Children are more likely than adults to become dehydrated.

Staying Safe Indoors and in Vehicles

Keep anything that can burn at least three feet away from heating equipment, including furnaces, fireplaces, wood stoves, and portable space heaters.
Set up a 3-foot “kid-free zone” around open fires and space heaters.
Remember to turn portable heaters off when leaving the room.
Test smoke alarms at least once a month.
Vent all fuel-burning equipment to the outside to avoid carbon monoxide (CO) poisoning.
Install and maintain CO alarms. Keep alarms at least 15 feet away from fuel-burning appliances.
If you need to warm up your vehicle, remove it from the garage as soon as you start it to avoid the risk of CO poisoning. Don’t leave a vehicle running inside a garage.
If vehicles are parked outside, check to make sure the tailpipe is not blocked with snow, which can also cause problems with CO.

Sleeping Safely in Any Season

Keep babies’ cribs free of stuffed animals and blankets. A firm mattress covered with a tight-fitting crib sheet is all that an infant needs to sleep safely.
If you are worried about keeping babies warm, dress them in a wearable blanket, also known as a sleep sack.

Infection Control

Cold weather does not cause colds or flu. However, viruses that cause a cold and the flu are more common in the winter when children spend more time indoors.
Keeping everyone’s hands clean is one of the most important ways to avoid getting sick and spreading germs to others. Wash hands with soap and clean running water and rub them together for at least 20 seconds.
Teach children to cough or sneeze into their upper sleeve or elbow, not their hands. Adults should model this behavior.
Review program policies on handwashing; cleaning, sanitizing, and disinfecting; and excluding children and caregivers who are sick.
The U.S. Centers for Disease Control and Prevention and the American Academy of Pediatrics recommend that all children 6 months and older receive the seasonal flu vaccine every year. All early care and education program staff should also get vaccinated for the flu.