News
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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Economy
6 Wild Truths About America’s 2025 Spending Habits: Fetch Reveals Surprising Consumer Trends
The Fetch Finds Report reveals that in 2025, Americans balanced hard work with self-care, reflecting a mix of discipline and indulgence. Notable trends included a resurgence in meat sales, increased dining out, a focus on organization, and a rise in comfort-related purchases.
The Fetch Finds Report reveals a year of hustle, comfort, and delightfully chaotic shopping carts
Americans in 2025 were a study in contradictions. We hit the gym but also hit the couch. We decluttered our homes while filling our carts. We powered through demanding days with energy gels and powered down with weighted blankets and candles.
That’s the picture painted by Fetch’s first-ever full-year Fetch Finds Report, which analyzed more than $179 billion in consumer transactions. With 12 million receipts submitted daily, the data tells a story that’s equal parts discipline and indulgence—a snapshot of a nation trying to balance the hustle with some much-needed comfort.
6 Wild Truths About America’s 2025 Spending Habits: Fetch Reveals Surprising Consumer Trends
The Six Spending Surprises of 2025
1. The Meatless Revolution Has Expired
Remember when plant-based everything was the future? In 2025, Americans said “thanks, but no thanks” and brought meat back to the table. Fresh beef sales jumped 13%, pork climbed 12%, while refrigerated plant-based alternatives dropped 11%. Despite rising grocery costs, consumers chose the real deal over the meatless alternatives.
2. America’s Eating Out—and Sushi’s on a Roll
Even with tighter budgets, dining out surged. And the big winner? Sushi, with a massive 45.6% increase in trip growth. Mexican restaurants saw a respectable 13.9% bump, and pizza grew 6.7%. But sushi absolutely dominated the dining-out conversation this year.
3. Endurance Nutrition Takes a Victory Lap
Energy chews and gels jumped 27.4% in 2025. Whether Americans were actually running marathons or just trying to survive Monday morning meetings, endurance nutrition became a go-to for powering through demanding days.
4. The Great American Declutter Hit Overdrive
Self-care became shelf-care. Household storage bags surged 55.8%, charging valets climbed 37%, and cleaning gloves rose 13.4%. Getting organized wasn’t just about tidiness—it became an act of wellness. A clean space, a clear mind.
5. Protein Moved into the Pantry
Protein isn’t just for gym bros anymore. Everyday staples got a protein makeover:
- Protein-labeled breakfast cereals: +69.8%
- Protein granola: +45.9%
- Protein dry pasta: +35.4%
Consumers wanted their regular foods to work harder, turning breakfast and dinner into opportunities to fuel up.
6. America Powered Down and Got Comfortable
Comfort became the ultimate status symbol. Loungewear sales soared 218%, weighted blankets climbed 45%, and candles rose 20%. After all that hustle, Americans made winding down a priority—and they weren’t shy about investing in it.
What This Tells Us
The Fetch Finds Report captures something real about 2025: Americans were navigating a shifting economy with a mix of practicality and self-care. We pushed hard during the day and gave ourselves permission to relax at night. We organized our homes, fueled our bodies with protein, and treated ourselves to sushi dinners and cozy nights in.
“Fetch sees what others can’t: how people actually spend based on billions of purchases,” said Jacob Grocholski, Vice President of Analytics at Fetch. “This year, we saw a chaotic mix of discipline and indulgence that defined how people navigated 2025.”
About the Data
The findings come from Fetch, America’s Rewards App, which captures billions of spending transactions annually using AI and machine learning. With more than 6 million five-star reviews and users submitting 12 million receipts daily, Fetch has unmatched visibility into what consumers actually buy—at the item level, across every channel and retailer.
Want the full breakdown? Read the complete Fetch Finds Report for all the details on America’s 2025 spending habits.
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News
CES 2026: The Exhibitors and Moments That Stood Out for Entertainment + Tech Fans
CES 2026 delivered big entertainment-tech moments—from Sony Honda’s AFEELA to streaming, smart glasses, AI PCs, and robots that stole the show.
CES 2026 (Jan. 6–9 in Las Vegas) didn’t feel like a “future tech” show as much as a “right now” show. The big shift: AI wasn’t treated like a standalone product category anymore. It was the invisible layer powering everything from streaming discovery to robots that can actually do work.
For STM Daily News readers who live in the overlap of Entertainment and Tech, here are the exhibitors and trends that stood out most—plus why they matter beyond the show floor.
1) Sony Honda Mobility (AFEELA): The car as a rolling entertainment platform
Sony Honda Mobility’s AFEELA presence reinforced a direction CES keeps leaning into: the next generation of vehicles is competing as much on software and in-cabin experience as it is on horsepower.
What made it stand out:
- AFEELA represents the “car as a connected device” idea taken seriously—where the cabin becomes a screen-first, service-driven environment.
- It’s a clean example of how mobility and entertainment are merging: navigation, safety, personalization, and media all living in one interface.
2) Netflix + Amazon Prime Video + Roku + Xumo: Streaming is evolving into ecosystems
CES 2026’s Content & Entertainment story wasn’t about “who has the most subscribers.” It was about streaming as an ecosystem: bundling, ad-supported growth, and smarter discovery.
What made it stand out:
- CES highlighted how streaming platforms are pushing beyond simple libraries into bundles, premium originals, and integrated experiences.
- FAST (free ad-supported streaming TV) continues to gain traction, and device/platform players are positioning themselves as the front door.
3) Dolby: The quiet power behind the best-looking, best-sounding experiences
Dolby isn’t always the flashiest booth, but it consistently shows up as the tech that makes everything else feel “premium.”
What made it stand out:
- In a year where screens, XR, and immersive venues are everywhere, audio and imaging standards are the difference between “cool demo” and “wow.”
- Dolby’s relevance keeps growing as entertainment moves across phones, living rooms, cars, and wearables.
4) Meta + XREAL: Smart glasses keep inching toward mainstream
Wearables at CES 2026 weren’t just about steps and sleep. The momentum was in smart glasses and AR—especially as generative AI voice interfaces make hands-free use feel more natural.
What made it stand out:
- CES noted smart/AR glasses evolving with features like real-time translation, recording, and AI voice interfaces.
- For entertainment fans, this is where “watching” and “doing” start to blend—live overlays, creator tools, and new ways to capture experiences.
5) Samsung + LG + TCL: Screens are still the show’s main stage
Even in an AI-everywhere year, CES still belongs to display tech. Big brands kept proving that TVs aren’t just TVs—they’re hubs for gaming, streaming, smart home control, and ambient experiences.
What made it stand out:
- Display leaders continue to set the tone for how entertainment is consumed at home.
- The conversation is shifting from specs to experience: personalization, AI-powered recommendations, and multi-device continuity.
6) NVIDIA + AMD + Lenovo: The “AI PC” era is no longer theoretical
CES 2026 made it clear that the next wave of consumer computing is built around on-device AI. That matters for creators, editors, and anyone who lives in content.
What made it stand out:
- CES highlighted AI’s move from “digital transformation” to “intelligent transformation,” including edge/enterprise and physical AI in robotics.
- AMD’s CES keynote emphasized AI across devices from PCs to data centers, underscoring how quickly this is becoming standard.
7) Unitree + Richtech Robotics + Hyundai: Robots were the surprise crowd-pleaser
If CES 2026 had a “you had to see it” category, it was robotics. Not just novelty bots—machines built for real environments.
What made it stand out:
- CES framed robotics as “physical AI,” where generative AI and simulation training help robots learn faster than traditional programming.
- Humanoid robots, in particular, are moving from single-task demos toward more collaborative assistant roles.
The big takeaway for STM Daily News readers
CES 2026 wasn’t about one killer gadget. It was about convergence:
- Entertainment is becoming more interactive, more personalized, and more portable.
- Cars are becoming screens.
- Wearables are becoming interfaces.
- Robots are becoming the next “device category” people actually want to watch.
And underneath it all: AI is becoming less of a headline and more of the operating system for modern life.
Here’s a list of what stood out to us at CES 2026:
- Sony Honda Mobility (AFEELA): The car as a rolling entertainment platform
- Netflix + Amazon Prime Video + Roku + Xumo: Streaming is evolving into ecosystems
- Dolby: The quiet power behind the best-looking, best-sounding experiences
- Meta + XREAL: Smart glasses keep inching toward mainstream
- Samsung + LG + TCL: Screens are still the show’s main stage
- NVIDIA + AMD + Lenovo: The “AI PC” era is no longer theoretical
- Unitree + Richtech Robotics + Hyundai: Robots were the surprise crowd-pleaser
Sources
- CES press release recap and exhibitor/topic highlights (Jan. 9, 2026): https://www.ces.tech/press-releases/ces-2026-the-future-is-here
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actors & performers
T.K. Carter, The Thing and Punky Brewster Actor, Dies at 69
Actor T.K. Carter, known for The Thing and Punky Brewster, has died at age 69. A look at his career and lasting legacy in film and television.
T.K. Carter in Punky Brewster (1984) Image: IMDB
Veteran actor T.K. Carter, best known for his roles in The Thing and the popular 1980s television series Punky Brewster, has died at the age of 69.
Authorities confirmed Carter was found unresponsive at his home in Duarte, California. No foul play is suspected, and an official cause of death has not yet been released.
A Career Spanning Decades
Born Thomas Kent Carter, T.K. Carter built a career in film and television that spanned more than four decades. He became a cult favorite portraying Nauls in John Carpenter’s 1982 horror classic The Thing, a film that continues to influence the genre today.
Television audiences widely remember Carter for his role as Mike Fulton on Punky Brewster, where his comedic timing and grounded performances helped make the show a lasting favorite of the era.
Film and Television Legacy
In addition to his best-known roles, Carter appeared in films such as Runaway Train, Ski Patrol, and Space Jam. His television work included guest appearances on a wide range of series throughout the 1980s, 1990s, and beyond.
Known within the industry as a reliable and versatile performer, Carter often brought authenticity and warmth to supporting roles that left a lasting impression, even in brief appearances.
Remembering T.K. Carter
As news of his passing spreads, fans and colleagues alike are reflecting on T.K. Carter’s contributions to film and television. While he may not have always been the leading name on the marquee, his work helped shape stories that continue to be watched and appreciated by new generations.
T.K. Carter is remembered for his enduring performances, professional dedication, and the quiet but meaningful legacy he leaves behind.
Related Coverage
- Los Angeles Times: Actor T.K. Carter Dies at 69
- People Magazine: T.K. Carter, ‘The Thing’ and ‘Punky Brewster’ Actor, Dead at 69
- Entertainment Weekly: T.K. Carter, ‘Punky Brewster’ and ‘The Thing’ Actor, Dies
- ABC News: Veteran Actor T.K. Carter Dies at 69
Stay with STM Daily News for updates to this developing story and more independent coverage of entertainment, history, and culture. Visit www.stmdailynews.com for the latest.
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