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John,
The wealthiest billionaires pay a shockingly low tax rate, actively worsening the racial wealth gap that has plagued our nation for generations.
While the median white family has eight times the wealth of the median Black family, our tax system continues to provide the biggest benefits to those who need them least.[1] Black families are audited at roughly 3 to 5 times the rate of non-Black households, and over 90% of the tax benefit from charitable contributions goes to white households, despite Black households giving away a larger share of their income.
But there's hope on the horizon. We have a comprehensive set of reforms that can address these systemic inequalities:
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Equalizing tax rates for investment income and work income
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Taxing the income generated by wealth annually for the wealthiest households
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Adjusting the charitable-contributions deduction to benefit more Americans
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Targeting other deductions to better benefit lower and middle-income families
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Allowing the current pass-through income deduction to expire
John, it's time to level the playing field. We have an opportunity to reshape our tax system and build an economy that works for everyone, no matter where we come from or what we look like. But every day we delay is another day billionaires 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 both the House and Senate: It's time to make our tax code more equitable. Pass these crucial reforms to create a fairer economy for all!
Additional reforms like the Billionaire Minimum Income Tax (BMIT) proposed by the Biden-Harris administration offer a concrete solution to address this systemic inequality. This law would ensure that the wealthiest 0.05% of Americans, those with wealth over $100 million, pay at least a 25% tax rate on their total income, including unrealized capital gains.[2]
The potential benefits of the BMIT are staggering. It could generate over $500 billion in revenue over 10 years, exclusively from the nation’s handful of wealthiest households. That’s money that could be invested in education, healthcare, and economic opportunities in communities that have been historically marginalized and underinvested in.
By targeting unrealized capital gains, the BMIT closes a major loophole that allows the ultra-wealthy to avoid taxes by borrowing against their assets instead of selling them.
We can create a tax system that reflects our values and invests in our shared future. Stand with us in this crucial fight for tax fairness and racial equity.
Tell the House and Senate: It's time to make our tax code more equitable.
Thank you for your commitment to building a fairer economy for all no matter where we come from or what we look like.
John Foti
Legislative Director
Americans for Tax Fairness Action Fund
[1] How Tax Fairness Can Promote Racial Equity
[2] Billionaire Minimum Income Tax
-- David's email --
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:
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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.
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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.
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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.
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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.
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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
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