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The vast majority of families would not benefit economically from the repeal of the tax law that was established in the presidential term of Donald Trump and most of the tax cuts would go to families with incomes greater than $ 100, 000 .
Deduction of state and local taxes paid (SALT) to $ 10, 000 per year up to 2025. A bipartisan group of members of Congress is trying to accelerate the repeal of that limit at a cost of $ 100 billion in 2022 .
According to an ITEP analysis, African Americans and Latinos would receive smaller average tax cuts than whites, which would increase the gap in after-tax income between this sector and higher-income whites.
Repeal of the SALT limit would negatively affect minorities in the same states who would benefit more than remove the limit, the study found.
African American, Latino and some Asian families in New Jersey, California, Illinois and New York would see an even smaller share of the benefits of the repeal of the SALT limit than the national figures.
In the four states, African-American families have between one 44% and a 54% less likely than whites to see a tax exemption, and Latino families have between a 49% and a 60% less likely than white to benefit from a SALT limit waiver.
Based on the study, the majority of American families of all races would see little to no benefit from a SALT limit waiver . The ITEP details that the roots of racial inequalities are deep and broad.
This has to do with national public policies and the deficiencies of the economic system, accompanied by individual acts of racism and discrimination .
Economic disparities between races and ethnicities are manifested in health, education, income, wealth and many other measures of well-being. Any of these disparities may be relevant for tax purposes , although income and wealth are usually the two most important.
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