While many studies have looked at the income gap by race, this study looked at the disparities in wealth. The report cited discriminatory lending practices and federal policies as key drivers of the wealth gap. The benefits of certain tax laws are more accessible to those who earn more.
For instance, deductions for mortgages and real estate provide the most benefit to those purchasing large and multiple homes, according to the study. That's because you need to itemize your deductions in order to take full advantage of the tax breaks, and high-income taxpayers tend to itemize. Lower-income people typically take the standard deduction.
Further, tax-deferred retirement savings plans help workers build wealth, but households of color are less likely to have access to these plans, the report found.