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Trump’s 2017 tax cuts expire soon − study shows they made income inequality worse and especially hurt Black Americans
Trump’s 2017 tax cuts favored corporations, worsening racial and economic disparities, especially affecting Black taxpayers’ wealth.
Beverly Moran, Vanderbilt University
The Tax Cuts and Jobs Act, a set of tax cuts Donald Trump signed into law during his first term as president, will expire on Dec. 31, 2024. As Trump and Republicans prepare to negotiate new tax cuts in 2025, it’s worth gleaning lessons from the president-elect’s first set of cuts.
The 2017 cuts were the most extensive revision to the Internal Revenue Code since the Ronald Reagan administration. The changes it imposed range from the tax that corporations pay on their foreign income to limits on the deductions individuals can take for their state and local tax payments.
Trump promised middle-class benefits at the time, but in practice more than 80% of the cuts went to corporations, tax partnerships and high-net-worth individuals. The cost to the U.S. deficit was huge − a total increase of US$1.9 trillion from 2018 to 2028, according to estimates from the Congressional Budget Office. The tax advantage to the middle class was small.
Advantages for Black Americans were smaller still. As a scholar of race and U.S. income taxation, I have analyzed the impact of Trump’s tax cuts. I found that the law has disadvantaged middle-income, low-income and Black taxpayers in several ways.
Cuts worsened disparities
These results are not new. They were present nearly 30 years ago when my colleague William Whitford and I used U.S. Census Bureau data to show that Black taxpayers paid more federal taxes than white taxpayers with the same income. In large part that’s because the legacy of slavery, Jim Crow and structural racism keeps Black people from owning homes.
The federal income tax is full of advantages for home ownership that many Black taxpayers are unable to reach. These benefits include the ability to deduct home mortgage interest and local property taxes, and the right to avoid taxes on up to $500,000 of profit on the sale of a home.
It’s harder for middle-class Black people to get a mortgage than it is for low-income white people. This is true even when Black Americans with high credit scores are compared with white Americans with low credit scores.
When Black people do get mortgages, they are charged higher rates than their white counterparts.
Trump did not create these problems. But instead of closing these income and race disparities, his 2017 tax cuts made them worse.
Black taxpayers paid higher taxes than white taxpayers who matched them in income, employment, marriage and other significant factors.
Broken promises, broken trust
Fairness is an article of faith in American tax policy. A fair tax structure means that those earning similar incomes should pay similar taxes and stipulates that taxes should not increase income or wealth disparities.
Trump’s tax cuts contradict both principles.
Proponents of Trump’s cuts argued the corporate rate cut would trickle down to all Americans. This is a foundational belief of “supply side” economics, a philosophy that President Ronald Reagan made popular in the 1980s.
From the Reagan administration on, every tax cut for the rich has skewed to the wealthy.
Just like prior “trickle down” plans, Trump’s corporate tax cuts did not produce higher wages or increased household income. Instead, corporations used their extra cash to pay dividends to their shareholders and bonuses to their executives.
Over that same period, the bottom 90% of wage earners saw no gains in their real wages. Meanwhile, the AFL-CIO, a labor group, estimates that 51% of the corporate tax cuts went to business owners and 10% went to the top five highest-paid senior executives in each company. Fully 38% went to the top 10% of wage earners.
In other words, the income gap between wealthy Americans and everyone else has gotten much wider under Trump’s tax regime.
Stock market inequality
Trump’s tax cuts also increased income and wealth disparities by race because those corporate tax savings have gone primarily to wealthy shareholders rather than spreading throughout the population.
The reasons are simple. In the U.S., shareholders are mostly corporations, pension funds and wealthy individuals. And wealthy people in the U.S. are almost invariably white.
Sixty-six percent of white families own stocks, while less than 40% of Black families and less than 30% of Hispanic families do. Even when comparing Black and white families with the same income, the race gap in stock ownership remains.
These disparities stem from the same historical disadvantages that result in lower Black homeownership rates. Until the Civil War, virtually no Black person could own property or enter into a contract. After the Civil War, Black codes – laws that specifically controlled and oppressed Black people – forced free Black Americans to work as farmers or servants.
State prohibitions on Black people owning property, and public and private theft of Black-owned land, kept Black Americans from accumulating wealth.
Health care hit
That said, the Trump tax cuts hurt low-income taxpayers of all races.
One way they did so was by abolishing the individual mandate requiring all Americans to have basic health insurance. The Affordable Care Act, passed under President Barack Obama, launched new, government-subsidized health plans and penalized people for not having health insurance.
Department of the Treasury data shows almost 50 million Americans were covered by the Affordable Care Act since 2014. After the individual mandate was revoked, between 3 million and 13 million fewer people purchased health insurance in 2020.
Ending the mandate triggered a large drop in health insurance coverage, and research shows it was primarily lower-income people who stopped buying subsidized insurance from the Obamacare exchanges. These are the same people who are the most vulnerable to financial disaster from unpaid medical bills.
Going without insurance hurt all low-income Americans. But studies suggest the drop in Black Americans’ coverage under Trump’s plan outpaced that of white Americans. The rate of uninsured Black Americans rose from 10.7% in 2016 to 11.5% in 2018, following the mandate’s repeal.
The consumer price index conundrum
The Trump tax cuts also altered how the Internal Revenue Service calculates inflation adjustments for over 60 different provisions. These include the earned income tax credit and the child tax credit – both of which provide cash to low-wage workers – and the wages that must pay Social Security taxes.
Previously, the IRS used the consumer price index for urban consumers, which tracks rising prices by comparing the cost of the same goods as they rise or fall, to calculate inflation. The government then used that inflation number to adjust Social Security payments and earned income tax credit eligibility. It used the same figure to set the amount of income that is taxed at a given rate.
The Trump tax cuts ordered the IRS to calculate inflation adjustments using the chained consumer price index for urban consumers instead.
The difference between these two indexes is that the second one assumes people substitute cheaper goods as prices rise. For example, the chained consumer price index assumes shoppers will buy pork instead of beef if beef prices go up, easing the impact of inflation on a family’s overall grocery prices.
The IRS makes smaller inflation adjustments based on that assumption. But low-income neighborhoods have less access to the kind of budget-friendly options envisioned by the chained consumer price index.
And since even middle-class Black people are more likely than poor white people to live in low-income neighborhoods, Black taxpayers have been hit harder by rising prices.
What cost $1 in 2018 now costs $1.26. That’s a painful hike that Black families are less able to avoid.
The imminent expiration of the Trump tax cuts gives the upcoming GOP-led Congress the opportunity to undertake a thorough reevaluation of their effects. By prioritizing policies that address the well-known disparities exacerbated by these recent tax changes, lawmakers can work toward a fairer tax system that helps all Americans.
Beverly Moran, Professor Emerita of Law, Vanderbilt University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Metro Board to Consider Locally Preferred Alternative for Sepulveda Transit Corridor Project
Metro Board will consider Modified Alternative 5 as the Locally Preferred Alternative for the Sepulveda Transit Corridor Project on January 22, 2026, a major step toward improving transit between the San Fernando Valley and LA’s Westside.
On Thursday, January 22, 2026, at 10:00 AM, the Metro Board will consider selecting a Locally Preferred Alternative (LPA) for the Sepulveda Transit Corridor Project. This milestone could significantly improve mobility options between the San Fernando Valley and the of Los Angeles.
Proposed Alternative
After a technical evaluation and reviewing more than 8,000 public comments from the Draft Environmental Impact Report (Draft EIR) period, Metro staff has proposed Modified Alternative 5 as the LPA. This underground heavy rail line would run between the Van Nuys Metrolink Station and the E Line Expo/Sepulveda Station with a key connection to the G Line at Van Nuys Boulevard.
Modified Alternative 5 combines the benefits of Alternative 5—high ridership, frequent service, and shorter station construction sites—while avoiding geographic challenges in the Santa Monica Mountains. It also incorporates connectivity advantages from Alternative 6 along Van Nuys Boulevard, reducing the overall project length and anticipated costs, and increasing direct connections to Metro’s growing transit network.
Next Steps
If approved, Metro would advance project development for the LPA, including:
- Evaluating phasing and the Public/Private Partnership (P3) delivery model
- Identifying value engineering opportunities
- Refining designs to allow G Line connection at Van Nuys Boulevard
- Continuing environmental review and community outreach
Public Participation
Residents, businesses, and institutions are encouraged to provide feedback:
- Attend in person: Sign up on the tablets in the Metro Headquarters lobby before 9:45 AM.
- Email comments: BoardClerk@metro.net (comments received before 5 PM on January 21, 2026, will be sent to the full Board)
- Watch live: boardagendas.metro.net
Why This Matters
The Sepulveda Transit Corridor Project will connect the San Fernando Valley to the Westside, addressing the natural barrier of the Santa Monica Mountains and relieving congestion on the I-405. It will provide a fast, safe, and reliable alternative to the freeway and strengthen LA’s regional transit network.
Disclaimer: Station locations and construction timelines are subject to change. Project availability may vary. Public input is encouraged before final decisions are made.
Continuing Coverage: STM Daily News will continue to follow developments surrounding the Sepulveda Transit Corridor Project, including Metro Board decisions, environmental review updates, community input opportunities, and the project’s long-term impact on transportation across Los Angeles.
For the latest updates, in-depth reporting, and transportation-focused coverage, visit STM Daily News.
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Major Popeyes Franchisee Sailormen Files for Chapter 11 — What It Means for Restaurants and the Economy
Sailormen Inc., a major Popeyes franchisee operating 130+ locations in Florida and Georgia, filed for Chapter 11 on Jan. 15, 2026 amid rising costs and heavy debt. Many restaurants are expected to remain open as restructuring continues.
A major Popeyes Louisiana Kitchen franchise operator is heading to bankruptcy court — but the headline does notmean Popeyes corporate is filing, or that every restaurant involved is about to close.
Sailormen Inc., a Miami-based Popeyes franchisee that has operated in the system since 1987, filed for Chapter 11 bankruptcy protection on Jan. 15, 2026. The company operates more than 130 Popeyes locations across Florida and Georgia (some industry coverage puts the count at 136), making it one of the chain’s largest franchise groups in the region.
Franchisee filing, not a Popeyes corporate bankruptcy
This case involves Sailormen (the operator) — not Popeyes corporate and not parent company Restaurant Brands International.
In a message referenced in industry reporting, Popeyes leadership said Sailormen’s filing does not reflect the overall health of the Popeyes brand, and that a large majority of Sailormen’s restaurants are expected to remain open while the company restructures.
What pushed Sailormen into Chapter 11
Court-related summaries and industry coverage point to a familiar mix of pressures hitting restaurant operators:
- Inflation and higher operating costs (food, labor, and day-to-day expenses)
- Higher borrowing costs as interest rates climbed
- Liquidity strain, including reports of falling behind on rent and facing pressure from landlords and vendors
- Legal disputes, including vendor-related claims tied to unpaid balances
The failed store sale that worsened the situation
One key detail: Sailormen reportedly tried to sell 16 Georgia restaurants to stabilize finances. That deal fell through, and the company remained responsible for lease guarantees tied to those locations — a liability that can linger even if other stores are performing.
The debt and the lender pressure
Industry reporting describes Sailormen as carrying a heavy debt load — cited at about $130 million overall.
More detailed figures cited in coverage include:
- Over $112 million in unpaid principal loan balance
- Over $17 million in accrued interest and fees
Reporting also points to pressure from BMO (BMO Bank), described as Sailormen’s largest lender. In December 2025, BMO reportedly sought to appoint a receiver, a move that can displace management and take control of a company’s assets. Sailormen’s Chapter 11 filing allows the company to continue operating as a debtor-in-possession while it attempts to reorganize.
Why this matters for “Food” and “Our Economy”
This isn’t just a Popeyes story — it’s a snapshot of what happens when restaurant operators face higher costs, value-conscious consumers, and more expensive debt at the same time.
Chapter 11 is designed to reorganize a business, not automatically liquidate it. For customers, the near-term impact may be limited if most locations stay open.
STM Daily News will follow this story as it develops, including any updates on store operations, restructuring plans, and potential sales of locations.
Sources
- Restaurant Business: “A big Popeyes franchisee files for bankruptcy” https://restaurantbusinessonline.com/financing/big-popeyes-franchisee-files-bankruptcy
- Restaurant Dive: “Large Popeyes franchisee files for Chapter 11” https://www.restaurantdive.com/news/popeyes-frachisee-sailormen-files-chapter-11-bankruptcy-protections/809854/
For more food business headlines and how they connect to the real economy, follow STM Daily News.
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Food and Beverage
Diva Fam Inc. Announces Voluntary Recall of True Sea Moss “Sea Moss Gel Superfood” Products Due to Possible Health Risk
Diva Fam Inc. is recalling all True Sea Moss Sea Moss Gel Superfood flavors nationwide due to missing pH/temperature records and potential botulism risk.
Diva Fam Inc.. announced a voluntary recall of all lots and flavors of its True Sea Moss brand Sea Moss Gel Superfood due to a lack of required regulatory authorization and temperature monitoring records for pH-controlled food products, according to a company statement released January 9, 2026.
The company said the recall applies to products manufactured prior to January 9, 2026. The manufacture date (MFD) is indicated on the can lid in MM/YYYY format.
Why the products are being recalled
Diva Fam said the recall is related to missing required regulatory authorization and temperature monitoring records for certain pH-controlled food products. The company noted that pH-controlled foods that are not manufactured in accordance with applicable regulatory requirements may present a potential risk of microbial growth, including organisms that can produce toxins associated with botulism.
Botulism is a rare but serious illness that can affect the nervous system. Symptoms may include general weakness, dizziness, double vision, difficulty speaking or swallowing, and, in severe cases, difficulty breathing or muscle weakness.
Diva Fam said no illnesses or adverse health events have been reported in connection with the products subject to this recall to date.
Where the products were sold
The affected products were distributed nationwide through select retail locations, online via https://truеsеamоss.cоm/, and other distribution channels, according to the company.
Recalled products (all flavors, all lots)
The recall includes all flavors and sizes and batch numbers of True Sea Moss brand Sea Moss Gel Superfood packaged in 16 FL OZ (473 mL) glass jars, manufactured prior to January 9, 2026.
Recalled flavors and UPCs
| Flavor | UPC |
|---|---|
| Mango | 5065006235875 |
| Pineapple | 5065006235288 |
| Wildcrafted | 5065006235073 |
| Apple and Cinnamon | 5065006235776 |
| Elderberry | 5065006235189 |
| Passion Fruit | 5061033691882 |
| Blue Spirulina and Raspberry | 5065006235813 |
| Strawberry | 5065006235271 |
| Cherry | 5061033691264 |
| Mango and Pineapple | 5065006235301 |
| 5 Blends in 1 | 5061033690052 |
| Soursop | 5061033691875 |
| Lemon Pie | 5061033691271 |
| Orange | 5061033692926 |
How the issue was identified
The company said the matter was identified during a California Department of Public Health inspection that raised questions regarding regulatory authorization and related production records for certain distributed products. Diva Fam said it is cooperating fully with regulatory authorities and initiated the voluntary recall to ensure regulatory alignment.
The company said the recall is being conducted with the knowledge of the U.S. Food and Drug Administration.
What consumers should do
- Discontinue use of the affected product.
- Follow the instructions provided by the place of purchase regarding product return or disposal.
- Contact the company for additional information (details below).
Consumer and media contact
Consumers seeking additional information may contact:
- Email: support@divafam.com
- Phone: (818) 751-3882
- Hours: Monday through Friday, 9:00 a.m. – 5:00 p.m. Pacific Time
Source: Diva Fam Inc. (PRNewswire, Jan. 9, 2026)
https://stmdailynews.com/culvers-thank-you-farmers-project-hits-8-million-donation-milestone/
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