WarrenUrges Yellen to Implement Racial Equity Recommendations

US Senator Elizabeth Warren urges Treasury Secretary Janet Yellen to expedite implementation of 40 recommendations to address racial discrimination in US tax and banking systems. Warren requests a briefing on the timeline for implementing the remaining proposals by May 23.

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WarrenUrges Yellen to Implement Racial Equity Recommendations

WarrenUrges Yellen to Implement Racial Equity Recommendations

US Senator Elizabeth Warren has called on Treasury Secretary Janet Yellen to expedite the implementation of 40 recommendations made by the Treasury Advisory Committee on Racial Equity (TACRE) to address racial discrimination in the US tax and banking systems. In a letter dated May 9, Warren expressed concern over the slow progress in implementing the reforms, which aim to improve economic conditions for Black, Latino, and Native American communities.

Why this matters: The implementation of these recommendations has significant implications for addressing systemic racial disparities in the US economy, which can have a lasting impact on the financial well-being of marginalized communities. Swift action on these reforms can help to promote greater economic equality and social justice.

The TACRE, established in December 2022, has proposed reforms to the IRS audit process, among others. Warren urged Yellen to implement these recommendations swiftly, citing their potential to improve economic conditions for communities that face barriers to building equity and financial security. However, experts, including TACRE member Dorothy Brown, have expressed concerns that the Treasury Department is not fully embracing the recommendations, viewing the committee as a "check-the-box" exercise.

In response to Warren's letter, the Treasury Department highlighted the rapid recoveries in Black and Latino unemployment rates and significant gains in household wealth for both groups, relative to previous downturns. A spokesperson stated that the Treasury Department's focus on equity has led to the most equitable economic recovery on record.

Warren has requested that the Treasury Department brief her staff by May 23 on the timeline for implementing the remaining proposals, including reforms to the IRS's auditing process and the creation of outreach tools to ensure low-income tax credits and green energy credits reach underserved communities.

The letter comes as President Joe Biden seeks to shore up support in communities of color ahead of the November presidential election. The creation of the TACRE and its work have been closely scrutinized, with some Republican senators challenging its establishment. As the Treasury Department works to address racial disparities in theUSeconomy, the swift implementation of the TACRE's recommendations could prove crucial in improving economic conditions for historically underserved communities.