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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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The Knowledge
Century City: From Hollywood Backlot to Business Hub
Century City, originally part of 20th Century Fox’s backlot, transformed into a prominent business district in Los Angeles during the 1950s amid the decline of cinema. Developer William Zeckendorf envisioned a mixed-use urban center, leading to iconic skyscrapers and establishing the area as a hub for law, finance, and media, blending Hollywood history with modern business.
Before Century City became one of Los Angeles’ premier business districts, it was part of 20th Century Fox’s sprawling backlot, used for filming movies and housing studio operations. By the 1950s, as television rose and movie attendance declined, 20th Century Fox faced financial challenges and decided to sell a portion of its land.
Developer William Zeckendorf envisioned a “city within a city”—a modern, mixed-use urban center with office towers, hotels, and entertainment facilities. Branded Century City, the name paid homage to its studio roots while symbolizing LA’s vision for the future.
The first skyscrapers, including the Gateway West Building, set the tone for the district’s sleek, futuristic skyline. Architects like Welton Becket and Minoru Yamasaki helped shape Century City’s iconic look. Over time, it evolved from Hollywood’s backlot to a corporate and legal hub, attracting law firms, financial institutions, and media companies.
Today, Century City stands as a testament to Los Angeles’ postwar optimism, westward expansion, and multi-centered urban growth—a unique blend of Hollywood history and modern business.
Related STM Daily News Links:
- The Evolution of Los Angeles Public Transportation
- Why Los Angeles Grew Into a Sprawling City
- Downtown Los Angeles: Past, Present, and Future
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Community
Local governments provide proof that polarization is not inevitable
Local politics help mitigate national polarization by focusing on concrete issues like infrastructure and community needs rather than divisive symbolic debates. A survey indicates that local officials experience less partisanship, as interpersonal connections foster recognition of shared interests. This suggests that reducing polarization is possible through collaboration and changes in election laws.
Lauren Hall, Rochester Institute of Technology
When it comes to national politics, Americans are fiercely divided across a range of issues, including gun control, election security and vaccines. It’s not new for Republicans and Democrats to be at odds over issues, but things have reached a point where even the idea of compromising appears to be anathema, making it more difficult to solve thorny problems.
But things are much less heated at the local level. A survey of more than 1,400 local officials by the Carnegie Corporation and CivicPulse found that local governments are “largely insulated from the harshest effects of polarization.” Communities with fewer than 50,000 residents proved especially resilient to partisan dysfunction.
Why this difference? As a political scientist, I believe that lessons from the local level not only open a window onto how polarization works but also the dynamics and tools that can help reduce it.
Problems are more concrete
Local governments deal with concrete issues – sometimes literally, when it comes to paving roads and fixing potholes. In general, cities and counties handle day-to-day functions, such as garbage pickup, running schools and enforcing zoning rules. Addressing tangible needs keeps local leaders’ attention fixed on specific problems that call out for specific solutions, not lengthy ideological debates.
By contrast, a lot of national political conflict in the U.S. involves symbolic issues, such as debates about identity and values on topics such as race, abortion and transgender rights. These battles are often divisive, even more so than purely ideological disagreements, because they can activate tribal differences and prove more resistant to compromise.
Such arguments at the national level, or on social media, can lead to wildly inaccurate stereotypes about people with opposing views. Today’s partisans often perceive their opponents as far more extreme than they actually are, or they may stereotype them – imagining that all Republicans are wealthy, evangelical culture warriors, for instance, or conversely being convinced that all Democrats are radical urban activists. In terms of ideology, the median members of both parties, in fact, look similar.
These kinds of misperceptions can fuel hostility.
Local officials, however, live among the human beings they represent, whose complexity defies caricature. Living and interacting in the same communities leads to greater recognition of shared interests and values, according to the Carnegie/CivicPulse survey.
Meaningful interaction with others, including partisans of the opposing party, reduces prejudice about them. Local government provides a natural space where identities overlap.
People are complicated
In national U.S. politics today, large groups of individuals are divided not only by party but a variety of other factors, including race, religion, geography and social networks. When these differences align with ideology, political disagreement can feel like an existential threat.
Such differences are not always as pronounced at the local level. A neighbor who disagrees about property taxes could be the coach of your child’s soccer team. Your fellow school board member might share your concerns about curriculum but vote differently in presidential elections.
These cross-cutting connections remind us that political opponents are not a monolithic enemy but complex individuals. When people discover they have commonalities outside of politics with others holding opposing views, polarization can decrease significantly.
Finally, most local elections are technically nonpartisan. Keeping party labels off ballots allows voters to judge candidates as individuals and not merely as Republicans or Democrats.
National implications
None of this means local politics are utopian.
Like water, polarization tends to run downhill, from the national level to local contests, particularly in major cities where candidates for mayor and other office are more likely to run as partisans. Local governments also see culture war debates, notably in the area of public school instruction.
Nevertheless, the relative partisan calm of local governance suggests that polarization is not inevitable. It emerges from specific conditions that can be altered.
Polarization might be reduced by creating more opportunities for cross-partisan collaboration around concrete problems. Philanthropists and even states might invest in local journalism that covers pragmatic governance rather than partisan conflict. More cities and counties could adopt changes in election law that would de-emphasize party labels where they add little information for voters.
Aside from structural changes, individual Americans can strive to recognize that their neighbors are not the cardboard cutouts they might imagine when thinking about “the other side.” Instead, Americans can recognize that even political opponents are navigating similar landscapes of community, personal challenges and time constraints, with often similar desires to see their roads paved and their children well educated.
The conditions shaping our interactions matter enormously. If conditions change, perhaps less partisan rancor will be the result.
Lauren Hall, Associate professor of Political Science, Rochester Institute of Technology
This article is republished from The Conversation under a Creative Commons license. Read the original article.
The Bridge is a section of the STM Daily News Blog meant for diversity, offering real news stories about bona fide community efforts to perpetuate a greater good. The purpose of The Bridge is to connect the divides that separate us, fostering understanding and empathy among different groups. By highlighting positive initiatives and inspirational actions, The Bridge aims to create a sense of unity and shared purpose. This section brings to light stories of individuals and organizations working tirelessly to promote inclusivity, equality, and mutual respect. Through these narratives, readers are encouraged to appreciate the richness of diverse perspectives and to participate actively in building stronger, more cohesive communities.
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Making a Difference
Why Christian clergy see risk as part of their moral calling
As clergy join protests against harsh immigration enforcement, a religious ethics scholar explains why many Christian Clergy view personal risk—arrest, backlash, even violence—as part of their vocation to protect vulnerable neighbors.
Laura E. Alexander, University of Nebraska Omaha
As Christian clergy across the United States participate in ongoing protests against harsh immigration enforcement actions and further funding for U.S. Immigration and Customs Enforcement, many are still pondering the words of Rob Hirschfeld. On Jan. 18, 2026, Hirschfeld, Bishop of the Episcopal Diocese of New Hampshire, encouraged clergy in his diocese to “prepare for a new era of martyrdom” and put their wills and affairs in order.
He asserted that “it may be that now is no longer the time for statements, but for us with our bodies to stand between the powers of this world and the most vulnerable.”
Hirschfeld’s words attracted a lot of attention, with clergy generally responding positively, though at least one priest argued that he “did not sign up to be a martyr” and had a family and church relying on him.
Other clergy have willingly faced arrest for their advocacy on behalf of immigrants, seeing it as a moral calling. Rev. Karen Larson was arrested while protesting at the Minneapolis airport. She stated that when people are being separated from their families and taken to unknown detention centers, “this is our call” to protest on their behalf.
As a scholar of religious ethics, I am interested in how Christian clergy and thinkers consider personal risk when they feel called to engage in social action.
Ethics of risk
There are many examples of Christian leaders who have taken on risks out of a religious and moral obligation to provide spiritual care for people in need or advocate for oppressed communities.
Most data on the risks that clergy face in their roles as religious leaders comes from studies of religious leaders in institutional settings, such as hospitals or prisons.
Scholarship on clergy and chaplains in medical settings points to a professional obligation to take on risks. Similar to medical providers who often see risking exposure to infection as part of their professional responsibility, many clergy and chaplains in medical settings understand their vocation to include such a risk.
Questions about professional risks became particularly acute during the early years of the HIV/AIDS crisis, when researchers were uncertain exactly how the disease was spread and caregivers feared they might acquire HIV through their bedside work.
In her memoir about chaplaincy with HIV patients, Audrey Elisa Kerr notes that Riverside Church in New York continued to organize funerals, ministries and support groups for HIV/AIDS patients despite “terror” in the wider community about contagion.
As a chaplain herself, Kerr says this story of “radical hospitality” inspired her to set aside her own fears and embrace her professional role caring for people who were ill and dying.
Priests and nuns of the Catholic Church who cared for HIV/AIDS patients in the 1980s risked both the fear of contagion and the disapproval of their bishops and communities, since many of the people they cared for were men who had sex with men.
Some felt, however, that they must care for those at the margins as part of their role in the church or their monastic order. Sister Carol of the Hospital Sisters of Saint Francis felt that it was simply her moral duty as a sister to “go where she was needed,” despite potential risk.
Examination of the ethical obligations of chaplains and clergy ramped up during the COVID-19 pandemic when at least some priest, pastors and hospital chaplains felt an obligation to continue visiting patients for spiritual care.
In a reflection from 2020, Rev. David Hottinger, then working at Hennepin Healthcare in Minneapolis, noted that chaplains “felt privileged” to use their professional skills, even though they took on extra risk because they did not always have access to adequate protective equipment.
Risks in other institutional settings are not such a matter of life and death. Because of their professional preaching function, however, clergy in church settings do accept the risk of alienating church members when they feel religiously called to speak about social issues. Rev. Teri McDowell Ott has written about taking risks when discussing LGBTQ+ inclusion and starting a prison ministry.
Risk-taking during social protest
For many clergy, religious and ethical obligations extend beyond their work in institutions like churches and hospitals and include their witness in public life.
Many feel an obligation to preach on issues of moral importance, even topics that are considered controversial and might elicit strong disagreement. It is common for priests and pastors in conservative churches to include messages against legalized abortion in their sermons.
Tom Ascol of the Center for Baptist Leadership urged Baptist pastors to preach about abortion in the lead-up to the 2024 presidential election.
Rev. Leah Schade, a Lutheran minister and scholar, has argued that since 2017, mainline pastors have preached more often on issues like racism, environmental justice or gun violence. Schade says pastors are inspired to speak more bluntly about social issues because of their religious concern for people who are at risk of harm from injustice or government policies.
Some clergy view their moral obligations as going beyond preaching and leading them to on-the-ground advocacy and protest. Rev. Brandy Daniels of the Disciples of Christ denomination examines these obligations in an article on her participation in a group of interfaith clergy in Portland, Oregon. The group was convened by a local rabbi and supported protesters for racial justice in Portland in 2017. In Daniels’ analysis, clergy took on the risk of staying in the middle of protests and facing a violent police response in order to “bear moral witness,” something they were both empowered and obligated to do as religious leaders.
Risking their lives
There are more extreme cases in which clergy who challenged government leaders or policies were killed for their words and actions of protest.
In a well-known historical example, Bishop Oscar Romero, canonized as a martyred saint by the Roman Catholic Church in 2018, was assassinated in 1980 after speaking out against human rights violations against poor and Indigenous communities committed by the government of El Salvador. Romero viewed himself, in his priestly role, as a representative of God who was obliged to “give voice to the voiceless.”
During recent protests against ICE in Minneapolis and elsewhere, many clergy risked arrest and bodily harm. Rev. Kenny Callaghan, a Metropolitan Community Church pastor, who says that ICE agents in Minneapolis pointed a gun in his face and handcuffed him as he tried to help a woman they were questioning, said, “It’s in my DNA; I have to speak up for marginalized people.”
On Jan. 23, 2026, over 100 clergy were arrested at the Minneapolis-St. Paul airport as they protested and prayed against ICE actions. Rev. Mariah Furness Tollgaard said that she and others accepted being arrested as a way of demonstrating public support for migrants who are afraid to leave their homes.
In Chicago, ministers have been hit with projectiles and violently arrested. Presbyterian pastor David Black was shot in the head with a pepper spray projectile while protesting outside an immigration detention center in October 2025.
The clergy have told reporters that they feel a particular call to be out in public and to protect and support their vulnerable neighbors against ICE raids, at a time when families are afraid to go to school or work and U.S. citizens have been swept up in enforcement tactics as well.
As I see it, for these and many Christian clergy and ethicists, the call to ministry includes an obligation to express their values of care for vulnerable neighbors precisely through a public willingness to accept personal risk.
Laura E. Alexander, Associate Professor of Religious Studies, University of Nebraska Omaha
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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