Disparate Racial Impact: Tax Expenditure Reform Needed

This policy brief was also published by Tax Notes here.


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.