Current budget proposals from the Trump administration and the Republican majority in Congress prioritize tax breaks for corporations and high-income earners and threaten essential programs like Medicaid and SNAP that millions of lower- and middle-income families rely on. With the 2017 Tax Cuts set to expire at the end of this year, there’s a strong push to extend these policies, which primarily benefit the wealthy. Without thoughtful reforms, millions of families could face reduced access to health care, food assistance, and other critical public resources.

The tax code isn’t just about raising revenue – it shapes power, resources, and ultimately, health outcomes.

To advance health equity and economic stability, Congress must close tax loopholes that disproportionately benefit the wealthy and invest in policies that support healthier, more equitable communities.

How the Tax Code Drives Health Inequities 

Economic stability is essential to good health, but too often, the rules of our economy are written by and for the wealthy few – corporations and billionaires who use their power to rig the tax code in their favor. These profit-driven policies widen the wealth gap, making it harder for families with low-and middle-incomes to access basic needs like healthy food, affordable housing, and medical care.

While most of us pay what we owe, the richest exploit loopholes, draining resources from the programs that keep our communities strong.

Policies that reduce the gap between the rich and the rest of us aren’t just about fairness—they save lives. Research shows that redistributing wealth through fair tax policies can improve public health. In fact, a 2016 study estimated that such measures could prevent hundreds of thousands of premature deaths each year.

Racism and classism work hand in hand to block opportunity for many, especially people that have historically been excluded from holding power. Because of decades of discriminatory policies that favored predominantly white, wealthy households, there are major wealth gaps across racial groups. On average, white families had more than nine times the wealth of Black families in 2021. This isn’t an accident—it’s the result of deliberate choices that benefit the wealthy while leaving communities of color to bear the brunt of disinvestment.

The connection between income and health is clear: families struggling to make ends meet are more likely to face chronic illness, stress, and shorter lifespans.

Tax policies that ensure the wealthy pay their fair share—while investing in housing, health care, and education—can close the racial wealth gap and improve health outcomes for Black communities and families of all backgrounds.

When we come together—across race and place—to demand a tax system that puts people over profits, we can create healthier, more equitable communities for everyone.

What’s at Stake: How Proposed Tax Cuts Jeopardize Our Health and Well-Being

Proposed tax cuts could jeopardize funding for programs like:

  • Medicaid: With over 72 million enrollees, cuts to Medicaid would threaten essential health coverage, particularly for older adults, children, and people with disabilities.
  • PTC (Enhanced Premium Tax Credits): These tax credits have helped make health insurance more affordable for 20 million individuals. Without them, premium payments would cost about $700 more a person per year.
  • SNAP (Supplemental Nutrition Assistance Program): Nearly 40 million people rely on SNAP, including 1 in 5 children, to help put food on the table.
  • Rental Assistance: Rental assistance lifts nearly 3 million people above the poverty line, helps them pay rent each month and avoid eviction and homelessness.

Certain tax loopholes, like the carried interest provision, enable companies—especially private equity-backed health care providers—to maximize profits at the expense of patient care. These practices can lead to staffing cuts and reduced services, undermining community health.

Solutions: A Tax Code That Promotes Health Equity 

We deserve a tax code that puts people first. By adopting the following reforms, Congress can make corporations and the wealthiest pay more to fund vital health programs. 

  • Increase overall revenue: When everyone pays their fair share, we can have enough funds to support and expand critical investments and ensure life-saving programs aren’t on the chopping block.
  • Tax Wealth Like Work: Close loopholes like the carried interest provision to ensure fair taxation.
  • Excess Profits Tax: Discourage corporate profiteering, especially in critical health sectors.
  • Restore the Estate Tax: Reduce wealth concentration and fund essential public health programs.
The Bottom Line: Now is the Time for Congress to Act

The tax code is more than a fiscal tool – it reflects our values and priorities. To build a fairer, healthier society, we must advocate for reforms that reduce inequality, strengthen public programs, and hold corporations accountable. Now is the time to center health in tax policy decisions.