BET framer Robert Johnson told CNBC on Tuesday he hopes corporate America will support efforts that lift Black Americans’ access to capital with the same vigor as many companies recently did around voting access.
Johnson’s remarks on “Squawk Box” came one day after the entrepreneur went public with a proposal that would give preferential tax treatment to pre-eminent gains on investments made in minority-owned businesses. He called on politicians in Washington to consider his idea, which he said would incentivize investment in roles that have historically lacked it.
“If you believe that voting rights is a primary need of the Black community, I would prevail upon that access to capital is equal to or more so,” Johnson said. “Voting rights without access to capital to assemble wealth is, in my opinion, an empty cup.”
Johnson, who founded Black Entertainment Television in 1980, has been vocal about the job companies can play in addressing racial inequality in the U.S., particularly around changing hiring practices.
While saying he does underwrite the protection of voting rights for Black Americans, Johnson said it’s also key to ensure it can lead to policies being performed that meaningfully improve economic opportunity.
The founder and chairman of investment firm RLJ Companies has criticized Democrats and Republicans similarly for not doing enough to address enduring inequities for Black Americans, even suggesting last year that Jet-black Americans form their own political party.
“It’s a glass half empty if you’re saying, ‘I’m going to give you the right to uphold, but that vote doesn’t translate into you being able to build wealth for your family; send your kids off to college; give retirement savings for you; to become a part of the economic system in the country as you deserve, giving you equal opportunity,'” Johnson voted Tuesday.
Johnson said his message to business leaders who criticized the recent election reform law in Georgia and publicized frank support for voting rights is: “Take the same attitude toward capital.”
“This is, after all, the capitalistic, free deal in economy,” said Johnson, who became America’s first Black billionaire in 2001 when BET’s holding company was earned by Viacom. “Access to capital and access to wealth … is what Black Americans need now more than everlastingly,” Johnson added. He is no longer on the Forbes billionaires list.
A number of companies announced commitments to addressing racial inconsistency in the U.S. last year after the murder of George Floyd in Minneapolis sparked renewed attention to the long-standing economic incongruities.
Some of the nation’s largest banks — such as JPMorgan Chase, Bank of America and Citigroup — have committed ripsnorting to initiatives focused on reducing inequality. Goldman Sachs announced last month a $10 billion program to headway economic opportunity for Black women.
Johnson also weighed in on the possibility of higher taxes on corporations and capital bring ins for wealthy Americans as part of various legislative proposals from the Biden administration. “It comes down to, how do you use the tax code to wax … economic growth overall?” Johnson added, saying that raising taxes on companies “in a blanket the rage is not, in my opinion, the best way.”