Historic and current injustices, both in public policy and in broader society, have resulted in vast disparities in income and wealth across race and ethnicity. State and local tax policies interact with this severe inequality in important ways. The Institute on Taxation and Economic Policy provides an overview of how these state and local tax policies serve to either exacerbate or narrow these racial income and wealth gaps, concluding with a set of policy recommendations state and local governments could enact or expand to advance racial equity.

Taxes and Racial Equity: An Overview of State and Local Policy Impacts
Institute on Taxation and Economic Policy, March 31, 2021