Policy Solutions to the Racial Wealth Divide

1. Policy Solutions to the Racial Wealth Divide 2019 RESULTS International Conference Emanuel Nieves, Associate Director of Policy, Prosperity Now Sunday, July 14, 2019

2. Prosperity Now’s mission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.

3. About prosperity now We open doors to opportunityfor those who have been kept off the path to prosperity. We help people build wealth by making sure they have what they need to build a better future. We enable meaningful mobility through research, policies and solutions.

4. Prosperity Now’s Tax policy research

5. Federal spending on asset / Wealth-building tax programs Source I From Upside Down to Right-Side Up: Redeploying $540 Billion in Federal Spending to Help All Families Save, Invest and Build Wealth, Prosperity Now

6. Rising cost of upside asset / Wealth-building programs Source I Prosperity Now analysis of Office of Management and Budget data

7. Prosperity Now’s Racial Wealth Divide Research

8. Prosperity Now’s Racial Wealth Divide Research

9. The Growing Racial Wealth Divide

10. The Growing Racial Wealth Divide

11. The Growing Racial Wealth Divide Source I Running in Place: Why the Racial Wealth Divide Keeps Black and Latino Families From Achieving Economic Security, Prosperity Now

12. THE Future of the Racial Wealth Divide

13. Prosperity Now’s Tax policy research

14. Who Benefits from the tax code Prior to the passage of the tax cuts and jobs act Source I The Road to Zero Wealth: How the Racial Wealth Divide is Hollowing Out America’s Middle Class, Prosperity Now, Institute for Policy Studies

15. Who Benefits from the tax code During debate of the tax cuts and jobs act

16. Who Benefits from the tax code Under Current law, the tax cuts and jobs act

17. Who Benefits from the tax code Under Current law, the tax cuts and jobs act • Of the nearly $275 billion within the Tax Cuts and Jobs Act in 2018, 72%—or $200 billion—goes to the top 20% of households Earning $110,000 or more Earning $110,000 or less Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

18. Who Benefits from the tax code Under Current law, the tax cuts and jobs act Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

19. Who Benefits from the tax code Under Current law, the tax cuts and jobs act • Of the nearly $275 billion within the Tax Cuts and Jobs Act in 2018, $218 billion (79.5%) goes to White households. • More than 40% of all tax cuts from the Tax Cuts and Jobs Act go to the White households in the top 5% of earners, despite only representing 3.9% of all tax returns.

20. Who Benefits from the tax code Under Current law, the tax cuts and jobs act • Communities of color are overrepresented among the bottom 60% and 20% of families and underrepresented among our richest households. Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

21. Who Benefits from the tax code Under Current law, the tax cuts and jobs act Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

22. Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

23. Who Benefits from the tax code Under Current law, the tax cuts and jobs act • Even among the super wealthy, the disparity within last year’s tax law is alarming. Source I Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, Prosperity Now, ITEP

25. Thank You!