As Black Charity Month continues, a new Gallup poll shows that Americans have Decline in confidence Our country’s ability to achieve racial equality in areas such as housing and employment. The result is the lowest number recorded since Gallup began tracking this data in the 1980s. Because black Americans are particularly skeptical of equal opportunities claims, this latest survey highlights how inextricably linked racial equality and economic inequality are. If legislators want to restore the American public’s confidence in equal opportunities, they must address both racial and economic justice issues—the U.S. tax law is a good starting point.
Nowadays The average net worth of a white family is $171,000 In contrast, the average net worth of a black family is only $17,150.This racial gap between rich and poor has hardly changed Over 50 years, Largely due to a key driver of our economy, the federal tax law. In essence, the tax law was established to benefit wealth rather than work. This continues to place black Americans at a distinct disadvantage.
If the Biden administration takes racial justice seriously, it should give priority to bold and ambitious reforms of the tax law that has long targeted black families.
As a mixed race, I have witnessed how the racial gap between rich and poor affects my family and this country. I am very lucky in my life, and I am very lucky that I will be the first person in my family who can pass on assets to my children. But because the US government has deliberately prevented black families from gaining wealth accumulation opportunities for decades, stories like mine are becoming rarer.Whether through rejection of FHA loans, GI bill benefits, or Other banking and commercial projects, Any advantage of existing wealth will put black families at a disadvantage.
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Today, our tax laws create permanent barriers for black families by protecting wealth and inheritance.As recently Public Broadcasting Corporation Billionaire tax exposure According to reports, rich and powerful people like to take advantage of loopholes and lobby for special rules to avoid paying taxes. These benefits include a lower tax rate on capital gains than earned income, loopholes in the loopholes of carry-over benefits, and a basis that allows heirs to avoid paying taxes on the proceeds of inherited assets. In short, if you make a living from salary (as many black families do), you pay a much higher tax rate than someone who lives on assets or inherited wealth.
Even with these privileges, many wealthy people still pay less and do so without fear, because the underfunded and understaffed IRS does not have the resources to hunt down individuals who are able to deal with legal challenges.Instead, the IRS tracks a disproportionate number of people who claim to receive income tax credits, usually Black american working class. How can we expect anyone to believe in the American Dream when organizations that should catch cheaters let them go and punish those struggling to make ends meet?
As a person who just started getting rich, I have seen how easy it is to accumulate wealth once you have wealth. I have to work hard to get to where I am now, but due to policies such as lower wealth tax rates and lack of enforcement of wealthy taxpayers, I know one of many rich people who have gained unfair advantages designed to help the rich maintain their wealth. The United States has taken a big step towards a country where everyone is equal, but we are still far from this goal. Such a policy will only undermine it.
In order to resolve the racial gap between rich and poor, we need to start with our tax law. We need to ensure that working people and wealthy heirs pay the same tax rate. At the same time, we need to close loopholes and strengthen law enforcement against tax evasion. The United States has played an active role in creating racial gaps between rich and poor, and must play an active role in narrowing the gap.
Karen Edwards is a former media technology director who volunteers for non-profit media. She is also a member of patriotic millionaires, high-net-worth Americans, business leaders, and investors who are unanimously concerned about the unstable concentration of wealth and power in the United States.
The views expressed in this article are those of the author.
