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How Post-Pandemic Tax Cuts Can Affect Racial Equity

State policymakers across the country are considering tax cuts in 2022. While there are many reasons and ways to cut taxes, state policymakers should keep in mind that the pandemic’s negative effects were unequal and that future state revenue growth is uncertain. This report, using the Tax Policy Center state tax model, analyzes 2021 tax cuts passed in Arizona, Maryland, New Mexico, and Ohio, showing how each state’s tax cut affected different income groups and representative households from different racial and ethnic groups. In general, states that expanded refundable tax credits provided larger benefits to representative Black and Latino households. 

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Posted in: Grey Literature on 03/05/2022 | Link to this post on IFP |
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