This example illustrates why Citizens for Tax Justice concluded from their analysis of the two tax plans that three-fifths of the Bush tax cuts would go to the top 10 percent of taxpayers and 43 percent to the top one percent. Because the wealthy pay more taxes, an across the board tax cut benefits them more. This is a meager income, but it means that 28 percent of those African American families with an adult earner would receive virtually no tax cut under the Bush plan. Virtually all African American families excepting the top 7 percent qualify for tax credits under the Gore-Lieberman plan. While a higher minimum wage may induce some employers to lower job offers, current studies find no negative market-wide employment effects from minimum wage increases during the 1990s.
Some studies even find that the employment of less educated black workers is enhanced.
To escape the low-income trap that still holds far too many African Americans in service industry jobs, they must obtain training and education. Both candidates have made education one of their central themes. That issue is discussed in a separate report. During the six-month period of MayBOctober 1995, the vast majority of employees reported receiving some training. Blacks received on average fewer than total hours than did whites or Hispanics, but, interestingly, the differences were largest with respect to informal training.