I don't understand the issue with it, honestly. In the U.S., government forms that list race actually list white people as "White" and black people are "African-American/Black". There is no distinction with us whites, since we're all apparently mutts anyway and we haven't risen up to shout about being called "European-Americans" or some other foolishness like that. At the same time, "black" to describe skin-color and self-identity is now only ascribed to people whose ancestors were African, but we really mean real Africans, you know, not those invasive Dutchmen in South Africa, am I right? We're talking about possibly Egyptian to definitely South Sudanese in terms of both skin color and political boundaries within the African continent.
But even to use colloquial color terms on these government papers, it would be seen as purely, utterly racist to describe Asian-Americans as "yellow" or Native Americans as "red", or any and everybody else to just list themselves off as "brown". That last one is just too broad a concept to do anyway, yet we just write "white" for us whites and "black" for us blacks.
There is no proper standard here. If we want to ask about someone's ethnicity on these government forms, effectively, we shouldn't see the option "white". Ask a white person who understands what ethnicity is, and you will get answers like "Irish-American", "German-American", "French-Romani-American", "Spaniard", "Aryan", etc. But being correct in what an ethnicity is and listing off choices in that regard is ridiculous since there are just so many ethnicities, and it comes off less like you being American and more like someone with a dual-citizenship.
And then there's "Hispanic." This term applies foremost to people who fit the two criteria of 1) speaking Spanish and 2) are especially of Latin-American descent, or Iberian (Spain, Portugal). But apparently, calling yourself "Latino" is, by one, likely small group of people's standards, pejorative social empowerment through identity politics since Latinos apparently can't speak Spanish fluently as this one group says, and calling yourself "Latin" is seen as being a foreign immigrant to the U.S. What are all these subdivisions and why are criteria suddenly relevant for one ethnic group but not another? Hispanics get special treatment in government programs where I live, otherwise they wouldn't ask if you even have part somewhere in you. They're like the new "Native American" in terms of special interests.
We should get rid of all of these terms, and if we are to mention actual race, merely go by the race classifications of Caucasian for whites, Mongoloid for Asians, and Negroid for blacks. We probably have no aboriginals in the United States, so I wouldn't put Australoid in there, but who knows. We have racial biological traits beyond the color of our skin that place us in these types, but people are getting sensitive over words and creating their own stigmas. Christ, I can just imagine a young Asian-American woman getting upset that she had to mark herself off as a Mongol, even, claiming that she isn't from Mongolia so why is she being called such, or that it implies her chromosomes are not in order.
But I digress. We social creatures are just so damn finicky about classification and identity politics, something I consider a non-issue is somehow a hot button.