Disparate Racial Impact: Tax Expenditure Reform Needed

This policy brief discusses the issues of potential disparate racial impacts of U.S. tax laws regarding government subsidy and incentive programs run through the tax system: tax expenditures. It analyzes the available data, provides normative insights, and describes eight steps to address disparate racial impacts through tax expenditures. It also calls for a heightened focus on racial injustice to be part of the broader renewed focus on equity considerations in the U.S. tax law, addressing long-standing and growing racial, income, and wealth inequalities.