Tax Policy to Reduce Racial Retirement Wealth Inequality

37 Pages Posted: 31 Oct 2023 Last revised: 13 Nov 2023

See all articles by Carl Davis

Carl Davis

Institute on Taxation and Economic Policy (ITEP)

Brakeyshia Samms

Institute on Taxation and Economic Policy (ITEP)

Date Written: September 1, 2023

Abstract

Important wealth differences exist between US Black and Hispanic families and their White counterparts. Nevertheless, recent legislation and new solutions from financial service providers create opportunities for employers to deploy employee financial wellness programs (EFWP) to improve their workers’ financial security. This study defines the scope, impact, and advantages of EFWPs for building financial security, especially for workers of color and their families. Results show that EFWPs and benefits are necessary yet insufficient to remove racial wealth disparities. I then outline the opportunities and challenges for employers, providers, and policymakers to improve workers’ financial wellness using EFWPs.

Keywords: Tax policy, retirement plans, savers tax credit, inequality, government expenditures

JEL Classification: H24, H22, H55, J32

Suggested Citation

Davis, Carl and Samms, Brakeyshia, Tax Policy to Reduce Racial Retirement Wealth Inequality (September 1, 2023). Wharton Pension Research Council Working Paper No. 2023-24, Available at SSRN: https://ssrn.com/abstract=4617703 or http://dx.doi.org/10.2139/ssrn.4617703

Carl Davis (Contact Author)

Institute on Taxation and Economic Policy (ITEP) ( email )

1311 L Street, NW Suite 400
Washington, DC 20005
United States

Brakeyshia Samms

Institute on Taxation and Economic Policy (ITEP)

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