Leveraging the tax code for racial equity

A recent resource from Prosperity Now (formerly the Corporation for Enterprise Development) explores mechanisms by which the tax code perpetuates systemic racism. Much of the federal government’s spending on tax code incentives largely assists wealthy, white households. However, there are many opportunities to leverage the tax code to address inequality and promote racial equity. For example, the Earned Income Tax Credit (EITC) already benefits households of color and low- and moderate-income households. The EITC could be expanded to further support these families and their ability to save and build assets. Other policy ideas include creating a universal and affordable retirement savings accounts with additional saving incentives, increasing support towards housing costs for low- and moderate-income households, and providing birthright investments to every child. #racialequity