Skip to content
Search

Latest Stories

Follow Us:
Top Stories

First Tax Season With Trump’s Big, Beautiful Bill Tax Cuts Disproportionately Harms Black Community

Despite having the nickname “The Working Families Tax Cut,” reports are showing the bill has had negative effects on marginalized communities.

News

First Tax Season With Trump’s Big, Beautiful Bill Tax Cuts Disproportionately Harms Black Community
Calendar shows "tax day" circled on the 15th.

WASHINGTON – According to President Donald Trump, this tax day should be a relief to working families as they see lower taxes. However, experts cautioned that many Black working-class Americans will face many negative consequences during the first tax season when the effects of President Trump’s “One, Big, Beautiful Bill Act” will take effect.

Also known as “H.R. 1,” the bill included hundreds of provisions that changed tax rates, increased the federal deficit, and cut social aid programs like Medicaid and SNAP benefits. Over the past eight months, reports have found that the bill disproportionately harms the working and middle-class Black community.


“We see that, with the passage of H.R. 1, that even with race-neutral attempts at policy change, that Black people uniquely bear many of the costs,” Portia Allen-Kyle, a civil rights attorney and social justice advocate, said in a recent webinar hosted by the Joint Center for Political and Economic Studies. “We’re thinking about affordability for Black families, thinking beyond wages, housing, food, childcare, and accounting for the ways that Black people interact with government.”

One of the most significant ways the bill accomplished this is through extending Trump’s 2017 “Tax Cuts and Jobs Act,” also known as the Trump Tax Cuts. Previously set to expire in 2025, the budget extended these changes to 2028.

“This really is a second part, or a sequel, to the 2017 Tax Cut and Jobs Act,” Goldburn P. Maynard Jr., a law professor at the University of Connecticut, said. “The two pieces of legislation should be beaded together.”

The Trump Tax Cuts increased the amount of State and Local Income Tax deductions an individual can take from their taxable income, raising it from $10,000 to $40,000. This results in the federal government having less revenue to use on social services. In the case of Trump’s budget, less social service revenue led to cuts to Medicaid, SNAP, and other food assistance programs.

“When you combine these policy choices with tariffs, the decision to tax consumer goods and refuse to extend healthcare credits, Black households continue to feel the squeeze,” Allen-Kyle said. “We know that regressive tax schemes always hit Black households the hardest.”

In a Tuesday interview on Capitol Hill, Sen.Raphael Warnock, D-Georgia, expressed his concerns. “This is Donald Trump’s economy – it’s not working for anybody except his billionaire friends,” he said.

At a recent White House event celebrating Black History Month, Trump claimed the opposite. “Our bill, our Beautiful Bill… this will help millions of African American children and ensure that no child is condemned to a failing government,” he said. One of the biggest ways this will manifest, according to Trump, is through families paying less in taxes.

With the federal government paying for fewer social services, states will now have to bear the burden of covering these additional costs if they want the services to continue, according to Whitney Jemison, the director of state fiscal policy at the Center on Budget and Policy Priorities.

“We’re really facing dual threats coming into 2026. There’s H.R. 1, and all of the fallout from H.R. 1 based on all of the new costs and responsibilities that the bill shifted onto states,” Jemison said.

With states either having to pay more to support social services or cut them altogether, a secondary consequence is often higher prices and fees for services and goods. “Increased fees on various services… fall disproportionately on low-income households that are most often, in most states, Black households,” Jemison said.

One such example is DC native Malleek Williams. After experiencing homelessness and unemployment for the past two years and relying on social services, such as Medicaid and SNAP, Williams is worried about what cuts to these services would mean for him.

“The cost of life is becoming more expensive for the low-income/disadvantaged, such as myself,” Williams said. “I don’t want to go out there and commit a crime or steal. I don’t want to do any of that nonsense to survive…food stamps are the better route to take.”

Williams is not alone in facing recent unemployment. According to the Bureau of Labor Statistics, the cost of living rose 2.4% in the past year, and Black unemployment currently stands at 7.1%, compared to the overall unemployment rate of 4.3%.

“There’s no question that the wealth gap is increasing under Donald Trump, impacting communities of color, other marginalized communities,” Warnock said. “Black women literally lost hundreds of thousands of jobs as a result of the Draconian cuts under DOGE (Department of Government Efficiency).”

Trump claims opposing statistics. “And since I took office, African American employment has increased by 182,000, the highest ever, jobs -- 182,000. Nearly half a million Black Americans have rejoined the labor force since we took office. Half a million,” he said.

According to the Economic Policy Institute, unemployment has increased for Black Americans by around 1.1% under the Trump administration so far. However, many experts remain hopeful that despite new challenges, affected families will persevere.

“What I see ahead is immense possibility. It will require imagination, courage, and resources, but appreciate this timely conversation, focusing on the unique experiences of Black households,” Latoya B. Parker, a senior researcher at the Joint Center for Political and Economic Studies, concluded.

Olivia Ardito is a graduate student in journalism with Northwestern University's Medill School of Journalism.


Read More

Bar graph of shopping carts

A deeper look at inflation in today’s economy—beyond money printing. Explore how trade fragmentation, geopolitics, tariffs, and industrial policy are driving structural inflation and rising costs in the U.S.

Andriy Onufriyenko/Getty Images

Inflation Has Changed—And So Has Who Pays for It

A familiar conservative argument is back: inflation is the result of government printing and overspending. Too many dollars, too much demand, not enough goods. It is a tidy explanation, one that has the advantage of clarity and a long intellectual pedigree. It is also incomplete.

That story assumes a stable, globalized economy in which production is efficient, supply chains are reliable, and market signals dominate political ones. In that world, inflation can plausibly be reduced to a question of monetary discipline or fiscal restraint. But today’s economy no longer operates under those conditions. Inflation is now driven less by excess demand and more by rising costs tied to trade fragmentation, industrial policy, and geopolitical conflict. These forces are not temporary disruptions. They are reshaping how goods are produced, where they are produced, and at what cost.

Keep ReadingShow less
People sitting at desks in an office.

A policy-driven look at AI-era job displacement and how “Transition Launch Pads” can speed reemployment through local hubs, retraining, and employer collaboration.

Getty Images, Bill Pugliano

Layoff Headlines Keep Coming, Policy Answers Don't. Here’s One Solution

Every week brings another round of displacement announcements. Tech companies, logistics firms, financial institutions, retailers — cutting headcount at a pace that no longer surprises anyone. The headlines are routine. What isn't routine — in fact, what is conspicuously absent — is any serious account of what comes next. Not for the companies. For the workers.

That absence is a policy failure, and it is getting more expensive for us all by the quarter. The longer folks remain unemployed, the greater the costs. The individual and their loved ones obviously suffer. The community does as well due to that productive individual sitting on the sidelines and the high costs of sustaining unemployment.

Keep ReadingShow less
Someone sitting at a desk, writing with a pen on paper, with a calculator and papers by their side.

An in-depth analysis of the U.S. economy reveals how federal budget priorities—shifting toward defense spending and away from domestic programs—are quietly increasing financial pressure on middle-class families despite strong headline numbers.

Getty Images, Maskot

The Math Isn’t Working: More for War, Less for America’s Future

On paper, the economy’s numbers look robust. But for many Americans, the math isn’t working.

A family like Mike and Lisa Hernandez, a middle-class couple in suburban St. Louis, is doing everything right. He manages a warehouse. She works part-time as a dental assistant. They have employer-sponsored insurance, a new house, and two kids. They’re living the American dream.

Keep ReadingShow less
The Salary Cap That Doesn’t Exist
a one dollar bill with a button on it

The Salary Cap That Doesn’t Exist

More than 17,500 people fall into homelessness for the first time every week in this country. The workers who help them find their way out earn wages that make it hard to stay in the job. Now the federal government is proposing to cut nearly a billion dollars from the programs that fund that work. The people closest to the crisis are being squeezed from every direction.

The nonprofit sector runs on mission. But it is sustained by people, and right now, the people are leaving.

Keep ReadingShow less