September 16, 2021

Biden’s Fiscal Policy May Better Solve the Problem of Racism

A recent article by Brooklyn Law School professor Steven Dean, “Pray for President Biden to Stop the Continuation of Racist Tax Policies” stated that national and international tax policies that did not address racism, such as those of the blacklisted countries. The gap between most black countries and tax havens, such as Ireland and Switzerland, will prevent President Biden from fulfilling his promise to eliminate systemic racism in our country.
Dorothy A. Brown, professor of law at Emory University, has delved into the domestic aspects of the tragedy that Dean highlighted and studied how the impact of the real estate red line continues to haunt the family value of non-white communities.
In “The Value of Your Home Is Based on Racism,” he explained that because “white families generally prefer to live in predominantly white communities with few or no black neighbors,” these communities “often have the highest market value. high “” Because they are what most Americans crave.
This makes it more difficult for blacks to benefit from the tax-free appreciation of the $ 500,000 home sale under the tax law.
Where you live not only sets expectations for your future, it also sets your sensitivity to IRS audits. Tax collection agencies that seek the respect of the courts based on their professional knowledge appear to be looking for non-tax literate individuals to increase audit fees.
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Many of the most frequently audited places in the country are primarily black communities . Kim M. Bloomquist, Senior Economist in the Research Department of the US Internal Revenue Service, published a study in Tax Notes in March 2019 and concluded that 79% of the population of the 10 most audited counties in 2017 were not white (almost all black or African American). To the US Census Bureau
The benefits of land ownership have long been denied to blacks. As Brown explained in his book “The Whiteness of Wealth: How the Tax System Poor Black Americans”, because of so many benefits and capital gains in property ownership This fact makes it more difficult for blacks to get these Benefits. How can we solve it?
It is more difficult for descendants without property and knowledge to accumulate investment income. Brown explained: “As a ‘property,’ enslaved blacks cannot get an education, they cannot get paid for work. The property cannot be married. Property cannot own property.
Given this history, it is almost impossible for the black community to catch up. The tax law ensures that old money grows faster than new money. The need for tax-free money to increase and exempt inheritance transfer money
US law stipulates that capital is greater than labor, and working as an employee is stupid. Even the payroll tax was abolished entirely at $ 142,800.
Therefore, the method of collecting approximately one-third of federal revenue applies only to employees, excluding many wealthy taxpayers.
The racial gap in corporate ownership, such as total US sales, which black companies can claim account for only 1.3% of total US sales, restricts the availability of relevant tax incentives, such as the capital gain prime rate and 20% pass. -by deduction in Section 199A.
IRS Commissioner Charles Rettig (Charles Rettig) said his agency will work with Congress to study how tax laws can further exacerbate racial differences.
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Director of the Internal Revenue Service Charles P. Rettig testified before the Senate Treasury Department … [+] POOL / AFP VIA GETTY IMAGES
But what is Biden’s commitment to act on the IRS findings? The tax enforcement practices of the Ministry of Finance and its agencies have been deeply rooted in decades of policies and regulations that disadvantage communities that are prevented from owning property or unable to obtain asset appreciation.
Given that the tax laws clearly benefit the more affluent communities, it is not surprising that the IRS is auditing the poorer communities.
As the leader of the executive branch, Biden can work with the Treasury Department to make significant progress in delivering on its promises by focusing on Dean and Brown’s efforts to address the root causes of the suppression of black economic success and make our country get rid of systemic racism in this nation.
Improving enforcement laws and policies, especially through deliberate and targeted efforts to close the tax gap, can go a long way toward addressing systemic racism.
Regarding the legislative proposals currently being discussed in Congress, we will have to see if Biden can get enough support in Congress to prevent geography, race and resources from allowing the IRS to focus on those who benefit the least. of the tax law.

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