Since its inception, the U.S. government has strongly promoted the expansion of White wealth. These past policies have created the current wealth gaps in which White households typically hold >10 times the wealth held by Black or Latinx households. The tradition continues today. Using nine tax deductions, the federal government currently supports household wealth accumulation by nearly $640 billion annually. Although they make no overt mention of race, these tax exemptions are designed specifically to help wealthier households. Using evidence from the Survey of Consumer Finances, this article estimates the racial shares of these tax benefits and shows a clear pattern of racial favoritism. In addition, repeated efforts to eliminate the estate and gift taxes mean more intergenerational wealth is tax-exempted. As in the past, our current federal wealth policies are promoting White supremacy.
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