The 4 Ways Trump’s Policies Affected the Latino Economy | The NY Journal

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Although the president Donald trump has presumed that it has “done more than anyone” for Latinos in the United States, a report from the Center for American Progress (CAP) indicates that although there was a reduction in unemployment rates before the pandemic of COVID-19, the Republican “exacerbated” the gap between rich and poor in this social group.

The report made by experts in economic and fiscal matters, Galen hendricks Y Ryan Zamarripa, discusses the impacts of the Tax Cuts and Jobs Act (TCJA).

“His administration’s flagship legislative achievement is a tax bill that left out many Latino families and exacerbated persistent wealth gaps.”, experts say.

In an interview, Zamarripa explains that President Trump was “lucky” to receive a country stabilized by Barack Obama, after the 2008 crisis, which has allowed it to boast economic achievements of which it is not necessarily a manager.

“I think he was lucky … and he’s trying to take credit for the hard work Obama and (Joe) Biden did.”Said the expert, who stressed that focused on the Latino community, it had improved since the eight years prior to 2016, when Trump won the presidency. In other words, it was a pre-established positive trend.

He added that the diversity that makes up the Latino community, from undocumented to green card holders, naturalized citizens and people born in the US, the impact of Trump’s policies is varied, but lagging behind the poorest.

The Republican stands out as being excellent “selling himself”, highlighting achievements that are not necessarily his, coupled with the fact that in this campaign he takes more account of the Latino community regarding the importance of their vote, approaching them on the economic issue.

“The economic issue is a general concern, regardless of race or ethnicity”, exposes Zamarripa, but highlights that President Trump recognizes the importance of the Latino vote in Arizona, Texas or Florida and how that demographic can be decisive in the election, for this reason he has even launched new economic plans that you hadn’t even considered before. “For me it is a great lack of respect that now he says that he wants to help this community.”

The four aspects that the experts highlight in their report are the following.

1. Wealth among Latinos and Whites

The report indicates that in 2016, the average white household had $ 171,000 in wealth, including durable goods, while the average Latino had just over $ 20,000 in wealth.

“In 2018, white taxpayers received almost 80 percent of all TCJA benefits, while only 6.7 percent went to Latino taxpayers,” the report states.

Based on data from a study by the Institute for Taxation and Economic Policy and Prosperity Now, it is added that the average tax cut for white households was twice that of Latino households.

2. The backwardness of children

The analysis indicates that the TCJA doubled the child tax credit (CTC) from $ 1,000 per child under 17 to $ 2,000.

“While the law significantly expanded eligibility for wealthier households to access credit – raising the income level where credit begins to phase out to $ 400,000 – most low-income families with children received only a partial benefit or no benefit ”, they warn.

That led to a 50 percent lag of Latino children.

Another aspect that stands out is the exclusion of a large part of the Latino workforce from the CTC, that is, those who report children with Individual Taxpayer Identification Numbers (ITIN) instead of Social Security Numbers (SSN).

“ITINs are used for tax filing purposes by people who do not qualify for a social security number, including many undocumented workers who pay taxes, as well as other immigrant residents of the United States,” experts say.

Thus, by denying the child tax credit to low-income working families whose children have an ITIN, the law left out approximately one million children, most of them undocumented.

3. Benefit to whites

The law promoted by Trump mainly benefits large corporations.

“Because non-Hispanic white households are much more likely to own stocks – both directly and through retirement accounts – these changes leave many Latino households with little benefit, while providing a large windfall for wealthy and wealthy households. predominantly white, ”states the analysis.

4. Wealth over work

The TCJA, experts say, indicates that President Trump’s law significantly weakened the inheritance tax for the wealthiest, who are predominantly white, helping to preserve the transfers of wealth dynasties between generations.

The TCJA provision expanded the level of tax exemption from $ 11 million to $ 22 million for married couples.

“This reduced the number of wealthy heirs who must pay and granted a tax cut of $ 4.5 million to each of the wealthiest inheritances,” they say. “The vast majority of this tax cut will go to wealthy white heirs.”

Experts revisits the 2019 Consumer Finance Survey, which indicates that white families are much more likely to receive inheritances than Hispanic households.

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