U.S. Senator Elizabeth Warren has been vocal this week in her call for the Treasury Department to address racial discrimination in the U.S. tax and banking systems more swiftly. The Treasury Advisory Committee on Racial Equity (TACRE), which was set up in December 2022, has made over 40 recommendations to date. However, Warren expressed concerns that many of these recommendations, including reforms to the IRS audit process, have not been implemented.
Yellen appointed 24 experts to the committee to analyze U.S. economic factors that have resulted in unfavorable conditions for Black, Latino, and Native Americans. These communities face barriers to building equity and assuring financial security for their families. Warren emphasized the importance of implementing the recommendations swiftly to improve economic conditions for these marginalized groups.
In her letter to Treasury Secretary Janet Yellen, Warren expressed her concern about the recommendations made by the TACRE remaining in limbo at Treasury. She urged Yellen to brief her staff by May 23 on the timeline for implementing the remaining proposals, which include reforms to the IRS auditing progress and the creation of outreach tools to ensure that low-income tax credits and green energy credits reach under-served communities.
It is noteworthy that President Joe Biden is working to gain support in communities of color ahead of the upcoming November presidential election. Warren’s call for action coincides with these efforts, as she seeks to address racial discrimination in the tax and banking systems. The creation of the committee has faced challenges from some Republican senators, indicating the political sensitivity of the issue.
Although Warren welcomed the Treasury rulemaking released in late March, which adopted a recommendation to share tax data with the Census to track racial disparities in tax enforcement, she emphasized the need for further action. The senator highlighted the importance of analyzing how Biden’s tax proposals would impact households with different race and income levels, as well as the potential benefits of new clean energy investments.
The issue of racial discrimination in the U.S. tax and banking systems is urgent and requires prompt action. Warren’s efforts to push for the implementation of the TACRE recommendations are commendable, but more needs to be done to address the disparities faced by Black, Latino, and Native American communities. It is imperative for the Treasury Department to prioritize these reforms to ensure economic equity and financial security for all Americans, regardless of their race or background.