Benjamin R. Web page, Tracy Gordon & Aravind Boddupalli (Tax Coverage Middle), Offering Changemakers The Information They Want To Deal with Racial Inequities In The US Tax Code:

[A]cross all revenue classes, itemized deductions disproportionately profit White taxpayers (determine 2). Total, itemized deductions enhance the after-tax incomes of items categorized as White by 0.7 p.c, whereas these categorized as Black achieve a mean of 0.4 p.c, and people categorized as Hispanic a mean of 0.2 p.c. These variations happen largely as a result of itemized deductions primarily profit higher-income households, amongst whom Black and Hispanic households are underrepresented.

We additionally discovered White taxpayers and Black taxpayers profit comparatively extra from itemized deductions than Hispanic households, even throughout the identical revenue classes. For instance, amongst these within the prime revenue quintile (which receives nearly 90 p.c of the advantages of itemized deductions), itemized deductions increase the after-tax incomes of White taxpayers by a mean of 1.1 p.c, in comparison with 1.0 p.c for Black taxpayers, and 0.6 p.c for Hispanic taxpayers (determine 3).

Surachai Khitatrakun, Gordon B. Mermin, Benjamin R. Web page & Jeffrey Rohaly (Tax Coverage Middle), A New Method for Estimating the Impression of Tax Insurance policies by Race and Ethnicity:

This working paper describes the strategy the Tax Coverage Middle (TPC) has used to boost its tax microsimulation mannequin to allow evaluation of the distributional results of tax insurance policies by race and ethnicity. It additionally presents preliminary outcomes utilizing the improved mannequin. Like microsimulation fashions used within the federal authorities and different analysis organizations, TPC’s mannequin depends on a pattern of particular person tax returns as its main information supply. These information lack info on race and ethnicity as a result of the IRS doesn’t gather it from tax filers. TPC subsequently developed a way to impute race and ethnicity in its tax information. The tactic replicates the tax items within the mannequin database, with one copy for every race and ethnicity included within the evaluation. Utilizing an algorithm, these copies are then weighted to match combination statistics calculated from survey information for variables associated to tax legal responsibility. TPC’s preliminary work matches statistics calculated from the Present Inhabitants Survey and the Survey of Shopper Funds. TPC’s methodology has the benefit that it may incorporate information from a number of surveys or different sources, and could be readily tailored to incorporate up to date or further information. Preliminary outcomes utilizing the improved mannequin point out that, throughout all revenue classes, itemized deductions profit tax items categorized as White greater than these categorized as Black or Hispanic. Throughout the identical revenue classes, tax items categorized as Hispanic profit lower than these categorized as Black or White. 

https://taxprof.typepad.com/taxprof_blog/2023/02/tax-policy-center-itemized-deductions-benefit-whites-more-than-blacks-and-hispanics.html