Although U.S. federal tax laws don't have explicit difference in rules by race, the outcomes of those facially "race-neutral" rules can have differential effects across racial groups. The article analyses government subsidy and incentive programs run through the tax system: tax expenditures, and...

Tom Neubig is Ernst & Young's national director of quantitative economics and statistics (QUEST) in Washington, and former director and chief economist of the U.S. Treasury's Office of Tax Analysis. Estelle Dauchy is a senior economist with E&Y's QUEST practice. The views expressed are solely of...