Prompt Cast
Racial Disparities in IRS Audits and Tax Policy
TLDR Black taxpayers are disproportionately audited by the IRS, leading to higher tax burdens for married black couples and perpetuating racial wealth disparities. Ongoing research aims to uncover the systemic disadvantages faced by taxpayers of color and the IRS is beginning to acknowledge these racial disparities.
Timestamped Summary
00:00
Black taxpayers are three to five times more likely to be audited by the IRS due to disparities in the earned income tax credit program.
03:32
The IRS's audit process, particularly through mail, can create a "doom loop" where lower income taxpayers, especially those claiming the earned income tax credit, are disproportionately targeted due to budget cuts shifting towards cheaper audits.
07:14
Dorothy Brown realized that married black couples with similar incomes pay more in taxes due to the tax code penalizing joint filing.
10:36
The tax code has historically worked against black Americans, with marriage often resulting in higher taxes for black couples with similar incomes.
13:58
The tax system has historically disadvantaged black Americans by funding policies that promoted white home ownership wealth through tax subsidies, perpetuating racial disparities in home ownership and wealth building.
17:20
Tax policy shapes the student debt burden carried by black Americans, contributing to racial wealth disparities and hindering financial outlooks.
20:40
The impact of tax policy on black and non-white individuals remains difficult to quantify, but ongoing research aims to uncover the extent of systemic disadvantages faced by taxpayers of color.
24:24
The IRS is acknowledging racial disparities in auditing, potentially leading to addressing systemic issues faced by taxpayers of color.
