How the Federal Tax Code Disadvantages Black Americans While Benefiting White Families

One of the things that widens the racial wealth gap is the federal tax code. The way the tax code is written puts black people at a disadvantage, according to a law professor who has spent her career researching racism in the tax system.

Flaws in the U.S. tax system have held back black families, said Dorothy A. Brown, Emory University law professor and author of “The Whiteness of Wealth: How the Tax System Appoverishes Black Americans—and How We Can Fix It.” “. ”

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“What the tax law does every April 15 is ensure that black Americans pay higher taxes than their white peers because black and white Americans are engaged in the same activity, but the tax law has a different impact because we bring our racial identities on our tax forms,” ​​Brown told CBS News.

“Even if the IRS doesn’t ask about race, that doesn’t mean the 1040 or the federal income tax system doesn’t have different effects for people of different races,” Kim Rueben , researcher Sol Price at the Tax Policy Center, told the Washington Post.

A To analyse by the nonpartisan Tax Policy Center found that although high-income Americans pay a greater share of their income in taxes, they still have a significant financial advantage over African Americans, according to a recently released report.

Tax Policy Center researchers looked line by line at Form 1040 for individuals and found that the tax code is not race-neutral.

Tax disadvantage for marriage

Since a majority of married black households have both spouses working, this puts them at a disadvantage. It is only when one of the spouses works that the couple benefits from a tax reduction. But if both spouses work, they will most likely see their tax rate increase.

According to the Census Bureau, white married couples are more likely to have a stay-at-home spouse and get a tax cut.

Read the full story on Finurah here.

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