John,

Our groundbreaking new report with Color Of Change reveals how the current tax code is actively perpetuating and exacerbating the racial wealth gap.

The U.S. tax system is set up to disproportionately benefit those who already have wealth, making it incredibly difficult for working families, especially in communities of color, to build their own wealth. Popular deductions for mortgage interest, college savings plans, and retirement accounts overwhelmingly benefit wealthy, predominantly white households who already have the means to buy homes and save for the future.

The impact of these policies is clear: the median wealth gap between Black and white households rose from $172,000 in 2019 to over $214,000 in 2022.[1] But there's hope. We have solutions that can turn the tide and create a more equitable tax system. Congress can take the following concrete steps to level the playing field:

• Equalize the tax rates for investment income and work income, eliminating the discount that allows wealthy investors to pay a far lower top tax rate on their income than workers do on theirs.

• More accurately tax the income generated by wealth by assessing capital gains taxes on the wealthiest households annually, instead of only after an investment is sold.

• Target deductions―like those for mortgage interest, college savings plans, and retirement accounts―to better benefit account holders with lower-value homes and smaller savings for college and retirement.

• Adjust the charitable contributions deduction to either be a credit for households under a certain income threshold or a deduction that can be taken on top of the standard deduction.

• Allow the current pass-through income deduction that primarily benefits hedge funds and other big businesses to expire, freeing up revenue to support small business owners and entrepreneurs in underserved communities.

We're also pushing for innovative solutions like the Billionaire Minimum Income Tax (BMIT) and the Billionaires Income Tax (BIT). These proposals would ensure that the wealthiest households in America pay at least a roughly 25% tax rate on their total income, including unrealized capital gains.[2]

John, we need your voice to make this happen. The ultra-wealthy and powerful corporations will fight tooth and nail to maintain the status quo. But together, we can build a movement too powerful to ignore.

Tell Congress: It's time to reform our tax code and promote racial equity! Send a message to your senators and representative now to demand immediate action.

While most Americans earn their income through paychecks and pay their fair share in taxes, the ultra-wealthy make money off the money they already have. This "wealth income" is taxed at far lower rates than work income.

The top capital gains tax rate is just 20%, while the top rate on work income is 37%. Even more disturbing, 92% of the benefit from this preferential treatment flows to white households, despite them making up only two-thirds of taxpayers.

The consequences of the widening wealth gap are felt most acutely in communities of color, where generations of discriminatory policies have already created significant economic disparities.

It's time to level the playing field and create an economy that works for all of us, not just the wealthy few. Every day we delay is another day that billionaires and corporations exploit our broken tax system to increase their wealth and power at the expense of working families and communities of color.

Take action now to tell your senators and representative that it’s time to reform our tax code and promote racial equity!

Thank you for standing with us in this crucial fight,

David Kass
Executive Director
Americans for Tax Fairness Action Fund

[1] How Tax Fairness Can Promote Racial Equity
[2] Billionaire Minimum Income Tax