| By Joint Center for Political and Economic Studies Photos: YouTube Screenshots The Joint Center for Political and Economic Studies released a new policy brief titled “Centering Black Households in the 2025 Tax Debate,” analyzing how the proposed extension of the 2017 Tax Cuts and Jobs Act (TCJA) would affect Black communities. The brief, authored by Joint Center Senior Fellow Jessica Fulton, highlights the implications of current tax proposals — including effects on income inequality, access to tax benefits, and long-term economic security for Black households. The brief also raises concerns about growing federal deficits. Proposed extensions and new deductions could reduce government revenues by nearly $4 trillion over the next decade. Notably, according to Joint Center survey results, 69 percent of Black households say reducing the federal deficit is a top priority — underscoring the importance of fiscal responsibility alongside equity. This analysis comes at a critical time as Congress shapes the future of U.S. tax policy. The Joint Center calls on lawmakers to examine both the distributional impacts and structural equity implications of any future tax reforms. |
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| While many of the TCJA’s corporate tax changes are permanent, its individual provisions are set to expire at the end of 2025. Lawmakers are now debating whether to extend or modify these provisions, including changes to income tax brackets, the Child Tax Credit, and deductions for pass-through businesses and tipped wages. Although some provisions — such as temporarily increasing the Child Tax Credit — would provide benefits to some Black families, the brief highlights research that shows that the majority of the financial gains would continue to flow to high-income and high-wealth households, which are disproportionately white. Specifically, provisions such as expanding the estate tax exemption and increasing deductions for pass-through income for small business owners may continue to widen the racial wealth divide. READ ISSUE BRIEF HERE Jessica Fulton is the senior fellow at the Joint Center for Political and Economic Studies. An expert on issues at the intersection of race and economic policy, Fulton’s work focuses on identifying and promoting policies to advance the socioeconomic status of the Black community. “The tax code should work fairly for people of all races, but recent research shows that the system creates benefits for some and excludes others,” said Fulton. “Policymakers must be intentional in evaluating how proposed changes to the tax law will either reduce or reinforce racial and economic inequality.” LEARN MORE |
