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Racial wealth gap

Urban-Brookings Tax Policy Center

A Guide to Understanding Racial Disparities in the Federal Individual Income Tax System

Introduction This report examines how the federal income tax system contributes to racial disparities in the United States. Although tax provisions do not reference race directly, they operate in an economic landscape shaped by deep, persistent inequity. The authors argue that the code distributes benefits in ways that reflect long-standing disparities, particularly between Black and…

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