In recent years a national discussion has been underway about the causes and effects of growing inequality, but one cause that has received little attention is the role of the U.S. tax code. The individual tax code contains more than $1 trillion in tax subsidies known to policymakers and economists as tax expenditures because, like spending programs, they provide financial assistance to support specific activities or groups of people. Of these subsidies, more than half a trillion, $540 billion, support some form of savings or investment (e.g., higher education, retirement, homeownership).

In theory, tax code–based public subsidies should help all families save and invest, but instead, wealthier households receive most of the benefits. In fact, a recent analysis of the largest wealth- building tax subsidies found that the top 1 percent of households received more benefits from these tax code–based subsidies than the bottom 80 percent combined.

The new brief answers key questions about tax expenditures: What are they, how do they work, and who benefits? In addition, since the Internal Revenue Service (IRS) does not collect tax data by race, the primer uses data related to the distribution of benefits by income quintiles and the demographics of each quintile to provide a rough approximation of how different racial and ethnic groups do or do not benefit from the different categories of tax expenditures.

Houston-Galveston is characterized by overall economic strength and resilience, but wide racial gaps in income, health, and opportunity coupled with declining wages, a shrinking middle class, and rising inequality place the region’s economic success and future at risk. Our analysis showed the region already stands to gain a great deal from addressing racial inequities. If racial gaps in income had been closed in 2012, the regional economy would have been $243.3 billion stronger: a 54 percent increase. You can also download the summary and addendum.

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This issue brief describes the economic and community benefits of ensuring every family can live in an affordable home.

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This issue brief describes how engaging youth benefits families, communities, and the economy.

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This issue brief describes the economic benefits of creating healthy environments for all—both through targeted strategies that improve the quality of neighborhood environments where low-income people of color live and work, and through larger-scale shifts toward a clean energy economy that does not rely on fossil fuels.

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With a median household income of $110,292, Fairfax County, Virginia is one of the wealthiest counties in the nation—but not all residents share in this economic prosperity. As its population has grown and diversified over the past 25 years, inequities in income and opportunity by race and geography have also increased. Given that communities of color are expected to increase from 45 to 72 percent of the population by 2040, taking concrete steps to create pathways for the communities being left behind to connect to education and good jobs is critical for the county’s economic future. This study was produced in partnership with the County and other local leaders to support their efforts to build a stronger and more equitable county. Download the profile.

 

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Anchor institutions, such as colleges and universities, hospitals and health-care facilities, utilities, faith-based organizations and museums have a role to play in driving economic growth. This brief is an introduction to developing and implementing an anchor strategy that can advance equity and economic inclusion in order to promote regional prosperity. It provides actionable recommendations for federal Economic Resilience and Sustainable Communities grantees and their broad range of regional partners.

With the third-highest level of working poverty in the country, many New Mexican families are already struggling to make ends meet, and predatory financial services further strip their wealth and exacerbate financial insecurity. The New Mexico Center on Law and Poverty (NMCLP) is working to protect low-income communities from predatory lenders and tax preparation services. PolicyLink, Program for Environmental and Regional Equity (PERE) at the University of Southern California, and NMCLP, with support from the W.K. Kellogg Foundation, co-produced two fact sheets: one highlighting the impact of predatory lenders on Native American communities, and one describing how expensive tax preparation services cost New Mexican families up to $54 million in 2015. These tools will support NMCLP’s policy campaigns to regulate predatory financial services and protect working families. Download Ensuring New Mexicans Receive Their Full Tax Refund and New Mexicans Deserve Fair Loans.

An equitable and inclusive health-care workforce in California—one that reflects the state’s racial, ethnic, and linguistic diversity and offers all Californians a chance at a meaningful job—is not only a moral obligation but also an urgent economic imperative. Increasing diversity in the health sector will also be critical for improving health and eliminating racial inequities through the provision of culturally appropriate services for all communities. As the demand for health-care workers continues to increase nationally, this trend plays out significantly in California, a state that employs over 1.3 million health workers and is projected to need an additional 450,000 by 2020. However, longstanding structural inequities in education, workforce training, and employment access create serious barriers that prevent many Californians, particularly people of color, from benefiting from the emerging training and job opportunities. This report explores the powerful trends driving demand for health-care workers, the key equity challenges to filling these gaps; and a robust set of strategies and specific policies that state leaders can undertake to foster a more inclusive health workforce.