"While the Federal individual income tax, taken as a whole, is progressive, meaning that it
reduces income inequality, some elements of the tax code exacerbate differences in income and
wealth accumulation by different racial groups, leading to greater inequality (Holtzblatt et al.,
2023). For example, Treasury estimates that 92 percent of the benefits of the tax expenditure for
preferential rates on capital gains and qualified dividends accrue to White families. Only 2
percent of the tax expenditure accrue to Black families and 3 percent to Hispanic families
(Cronin et al., 2023). A similar share of the benefits of the tax expenditure for the deduction for
income from pass-through businesses accrue to each group."
1) Not collecting money from citizens is actually an expenditure? This money you earned that they are LETTING you keep is actually an expenditure for the federal government. What an insane point of view.
2) They want to hike capital gains rates because it's mostly those lousy white people who make investments in the economy. Never mind what is best for the economy. Taxes for racial equity.
Link: https://home.treasury.gov/policy-issues/tax-policy/revenue-proposals