Institute on Taxation and Economic Policy, Prosperity Now
First published October 2018
The federal tax law enacted last December made major tax policy changes that overwhelmingly favor the wealthy and large corporations. In addition to significantly increasing the federal deficit, this law — known as the Tax Cuts and Jobs Act (TCJA) — will over the long term widen the already sizeable gap between the wealthiest Americans and the less well off.
What’s more, the TCJA will widen racial disparities in economic well-being, according to the new report from the Institute on Taxation and Economic Policy (ITEP), released with Prosperity Now. ITEP’s estimates provide valuable insights into how the recent federal tax changes will worsen the wealth disparity between white families and families of color.