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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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Travel Advisory
Traveling to Mexico this spring? Here’s what to know about current advisories
Traveling to Mexico this spring? Visitors should be aware of state-specific travel advisories, as safety concerns in one region do not affect major resort areas like Cancun and Los Cabos, currently rated Level 2, which encourages increased caution. Monitoring official updates is essential for informed travel decisions amidst evolving conditions.
Last Updated on March 10, 2026 by Daily News Staff
Traveling to Mexico this spring? Here’s what to know about current advisories
(Tiffany Miller for ALG Vacations) For some travelers counting down to spring break, recent headlines about violence in parts of Mexico have sparked a new question: Should I cancel my trip? Travel advisors say they are seeing a surge in calls and emails from clients trying to determine whether developments in one region affect major resort areas elsewhere.
The questions follow several days of unrest in parts of Mexico after security operations targeting organized crime leaders prompted temporary flight disruptions and shelter-in-place guidance for U.S. government personnel in areas including Puerto Vallarta and Guadalajara. In this article, ALG Vacations explains what current travel advisories mean for spring break travelers heading to Mexico.
The U.S. State Department evaluates Mexico state by state, not as a single destination, and advisory levels vary by region. Many major beach destinations, including Cancun, Riviera Maya, Tulum and Los Cabos, are currently under a Level 2 advisory, which encourages travelers to exercise increased caution. It does not discourage travel.
Part of the confusion stems from geography. Puerto Vallarta, on the Pacific coast, is roughly 1,300 miles from Cancun and the Riviera Maya on the Caribbean side, about the distance between New York and Miami. Because advisories are assigned state by state, developments in one region do not automatically alter another.
In recent days, that uncertainty has translated into additional inquiries about whether specific resort areas are experiencing disruptions. U.S. Embassy security alerts issued this week indicate that temporary shelter-in-place guidance affecting Puerto Vallarta was lifted and that flight operations resumed. The advisory level for the Mexican state of Quintana Roo remains unchanged.
Some clients are asking about alternatives, advisors say, but many are continuing with their plans after reviewing official updates. Travel patterns often shift in response to breaking headlines, they add, before stabilizing as clearer information becomes available.
The State Department assigns travel advisories on a four-tier scale ranging from Level 1, exercise normal precautions, to Level 4, do not travel. While Level 2 encourages increased awareness, Level 3 and Level 4 carry stronger language discouraging or restricting travel.
Advisories are reviewed regularly and can be updated as conditions evolve. The State Department’s Mexico advisory page breaks down conditions by state, reflecting the country’s federal structure rather than issuing a single national designation. Travelers can also enroll in the State Department’s Smart Traveler Enrollment Program, which provides real-time security updates and allows U.S. officials to contact citizens in an emergency.
Embassy notices state that airports, hotels and tourism services in Quintana Roo are operating normally. Security conditions across Mexico vary widely by state, with some regions carrying higher advisories and others designated Level 1. Most destinations popular with U.S. travelers are currently classified as Level 2.
As spring break approaches, advisors say informed decision-making depends on reviewing the advisories assigned to a specific destination and monitoring official updates, rather than reacting to national headlines alone. Travel decisions ultimately depend on individual comfort levels, they add, but advisory levels are assigned regionally and should be evaluated accordingly.
Photo courtesy of Shutterstock
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Last Updated on March 8, 2026 by Daily News Staff
Jay L. Zagorsky, Boston University
With the Olympic torch extinguished in Paris, all eyes are turning to Los Angeles for the 2028 Olympics.
The host city has promised that the next Summer Games will be “car-free.”
For people who know Los Angeles, this seems overly optimistic. The car remains king in LA, despite growing public transit options.
When LA hosted the Games in 1932, it had an extensive public transportation system, with buses and an extensive network of electric streetcars. Today, the trolleys are long gone; riders say city buses don’t come on schedule, and bus stops are dirty. What happened?
This question fascinates me because I am a business professor who studies why society abandons and then sometimes returns to certain technologies, such as vinyl records, landline phones and metal coins. The demise of electric streetcars in Los Angeles and attempts to bring them back today vividly demonstrate the costs and challenges of such revivals. https://www.youtube.com/embed/9X78ZqGyc5o?wmode=transparent&start=0 The 2028 Olympic Games will be held in existing sports venues around Los Angeles and are expected to host 15,000 athletes and over 1 million spectators.
Riding the Red and Yellow Cars
Transportation is a critical priority in any city, but especially so in Los Angeles, which has been a sprawling metropolis from the start.
In the early 1900s, railroad magnate Henry Huntington, who owned vast tracts of land around LA, started subdividing his holdings into small plots and building homes. In order to attract buyers, he also built a trolley system that whisked residents from outlying areas to jobs and shopping downtown.
By the 1930s, Los Angeles had a vibrant public transportation network, with over 1,000 miles of electric streetcar routes, operated by two companies: Pacific Electric Railway, with its “Red Cars,” and Los Angeles Railway, with its “Yellow Cars.”
The system wasn’t perfect by any means. Many people felt that streetcars were inconvenient and also unhealthy when they were jammed with riders. Moreover, streetcars were slow because they had to share the road with automobiles. As auto usage climbed and roads became congested, travel times increased.
Nonetheless, many Angelenos rode the streetcars – especially during World War II, when gasoline was rationed and automobile plants shifted to producing military vehicles. https://www.youtube.com/embed/AwKv3_WwD4o?wmode=transparent&start=0 In 1910, Los Angeles had a widely used local rail network, with over 1,200 miles (1,930 kilometers) of track. What happened?
Demise of public transit
The end of the war marked the end of the line for streetcars. The war effort had transformed oil, tire and car companies into behemoths, and these industries needed new buyers for goods from the massive factories they had built for military production. Civilians and returning soldiers were tired of rationing and war privations, and they wanted to spend money on goods such as cars.
After years of heavy usage during the war, Los Angeles’ streetcar system needed an expensive capital upgrade. But in the mid-1940s, most of the system was sold to a company called National City Lines, which was partly owned by the carmaker General Motors, the oil companies Standard Oil of California and Phillips Petroleum, and the Firestone tire company.
These powerful forces had no incentive to maintain or improve the old electric streetcar system. National City ripped up tracks and replaced the streetcars with buses that were built by General Motors, used Firestone tires and ran on gasoline.
There is a long-running academic debate over whether self-serving corporate interests purposely killed LA’s streetcar system. Some researchers argue that the system would have died on its own, like many other streetcar networks around the world.
The controversy even spilled over into pop culture in the 1988 movie “Who Framed Roger Rabbit,” which came down firmly on the conspiracy side.
What’s undisputed is that, starting in the mid-1940s, powerful social forces transformed Los Angeles so that commuters had only two choices: drive or take a public bus. As a result, LA became so choked with traffic that it often took hours to cross the city.
In 1990, the Los Angeles Times reported that people were putting refrigerators, desks and televisions in their cars to cope with getting stuck in horrendous traffic. A swath of movies, from “Falling Down” to “Clueless” to “La La Land,” have featured the next-level challenge of driving in LA.
Traffic was also a concern when LA hosted the 1984 Summer Games, but the Games went off smoothly. Organizers convinced over 1 million people to ride buses, and they got many trucks to drive during off-peak hours. The 2028 games, however, will have roughly 50% more athletes competing, which means thousands more coaches, family, friends and spectators. So simply dusting off plans from 40 years ago won’t work.
Olympic transportation plans
Today, Los Angeles is slowly rebuilding a more robust public transportation system. In addition to buses, it now has four light-rail lines – the new name for electric streetcars – and two subways. Many follow the same routes that electric trolleys once traveled. Rebuilding this network is costing the public billions, since the old system was completely dismantled.
Three key improvements are planned for the Olympics. First, LA’s airport terminals will be connected to the rail system. Second, the Los Angeles organizing committee is planning heavily on using buses to move people. It will do this by reassigning some lanes away from cars and making them available for 3,000 more buses, which will be borrowed from other locales.
Finally, there are plans to permanently increase bicycle lanes around the city. However, one major initiative, a bike path along the Los Angeles River, is still under an environmental review that may not be completed by 2028.
Car-free for 17 days
I expect that organizers will pull off a car-free Olympics, simply by making driving and parking conditions so awful during the Games that people are forced to take public transportation to sports venues around the city. After the Games end, however, most of LA is likely to quickly revert to its car-centric ways.
As Casey Wasserman, chair of the LA 2028 organizing committee, recently put it: “The unique thing about Olympic Games is for 17 days you can fix a lot of problems when you can set the rules – for traffic, for fans, for commerce – than you do on a normal day in Los Angeles.”
This article has been updated to indicate that Los Angeles has four light-rail lines.
Jay L. Zagorsky, Associate Professor of Markets, Public Policy and Law, Boston University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Celebrating International Women’s Day!
International Women’s Day is celebrated globally on March 8th to honor women’s achievements and promote gender equality, originating from a 1908 march in New York for better rights.
Last Updated on March 7, 2026 by Daily News Staff
International Women’s Day is a global celebration that honors the achievements of women and highlights the progress still to be made in the fight for gender equality. On this day, people around the world come together to recognize the amazing contributions of women everywhere and to rally for greater gender equity in all areas of life.
The origins of International Women’s Day can be traced back to 1908, when 15,000 women marched through the streets of New York City to demand better working conditions and the right to vote. Since then, the celebration has grown to be an international event, with more than 100 countries recognizing the day. The United Nations even declared March 8th as International Women’s Day in 1975, to honor the struggles of women around the world.
This year’s International Women’s Day theme is #ChooseToChallenge, meaning that everyone is encouraged to call out gender bias and inequality when they see it. We’re also encouraged to celebrate women’s achievements, support each other, and take action for equality.
It’s important to recognize the progress we’ve made in terms of gender equality, but we still have a long way to go. International Women’s Day serves as a reminder that we must continue to fight for gender equality in all areas of life. Let’s use this day to honor the contributions of women around the world, and to continue the fight for a more equitable world.
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