U.S. Senator Elizabeth Warren has called on the Treasury Department to expedite the implementation of proposed reforms to combat racial discrimination in the U.S. tax and banking systems.
These reforms were recommended by the Treasury Advisory Committee on Racial Equity (TACRE), which was established in December 2022.
In a letter to Treasury Secretary Janet Yellen dated May 9, Warren expressed her concerns about the slow pace of implementing over 40 recommendations made by TACRE.
These reforms include changes to the IRS audit process and are aimed at improving economic conditions for Black, Latino, and Native American communities by removing barriers to building equity and securing financial stability.
Warren highlighted the lack of progress, stating, “I am concerned that the recommendations made by members of the TACRE remain in limbo at Treasury.”
She requested a briefing from the Treasury by May 23 on the timeline for implementing the remaining proposals.
This includes reforms to enhance the IRS’s auditing process and the development of outreach tools to ensure that tax credits for low-income and green energy are accessible to underserved communities.
The committee, which consists of 24 experts, was formed to analyze economic factors leading to disparities affecting these communities.
However, the implementation of their recommendations has been criticized as slow.
Dorothy Brown, a committee member and tax law professor, expressed concerns in January to Marketplace about the Treasury not fully embracing these recommendations, viewing the committee as merely a “check-the-box” exercise.
Warren’s push for these reforms coincides with President Joe Biden’s efforts to strengthen support among communities of color ahead of the upcoming presidential election.
The formation and work of the TACRE have been met with scrutiny and opposition from some Republican senators.
In her letter, Warren also acknowledged a recent Treasury rulemaking in late March, which adopted a TACRE recommendation for the IRS to share tax data with the Census to better track racial disparities in tax enforcement.
She welcomed this as a “much-needed” step but emphasized that more actions are necessary, especially in analyzing how Biden’s tax proposals might affect households of varying races and incomes and their access to new clean energy investments.