Tax change in virus package overwhelmingly benefits millionaires, Congressional body finds
Source: AP via pressherald
More than 80% of the benefits of a tax change tucked into the coronavirus relief package passed by Congress last month will go to those who earn more than $1 million annually, according to a report by a nonpartisan congressional body expected to be released on Tuesday.
The provision, inserted into the law by Senate Republicans, temporarily suspends a limitation on how much owners of businesses formed as “pass-through” entities can deduct in taxes from losses on other business income. The limitation was created as part of the 2017 Republican tax law to offset other tax cuts to firms in that legislation.
Suspending the limitation will cost taxpayers about $90 billion in 2020 alone, part of a set of tax changes that will add close to $170 billion over the next 10 years, according to the Joint Committee on Taxation, the nonpartisan congressional body.
The provision has fueled criticisms by congressional Democrats and some tax experts who have called it a giveaway to the wealthy and real estate investors, who frequently face large losses on their investments. Conservatives have said enacting the limitation was a mistake in the 2017 law and that suspending it gives badly needed liquidity during the economic downturn caused by the coronavirus by reducing their tax obligations.
An analysis by the Joint Committee on Taxation, a nonpartisan congressional entity, found suspending the limit overwhelmingly benefits higher-earners. About 82% of the benefits of the policy go to roughly 43,000 taxpayers who earn more than $1 million annually. Less than 3% of the benefits go to Americans earning less than $100,000 a year, the JCT analysis found. The JCT analysis included the impact of another tax change in the coronavirus legislation that allowing firms to write off 100% rather than 80% of their losses, reversing another change in the 2017 tax law.
Read more: https://www.pressherald.com/2020/04/14/the-latest-leader-of-sinn-fein-party-recovers-from-virus/#
So, the fascists slip this into the package just like they did the USPS poison pill years ago. They have people that do nothing but poison legislation like this getting their rich handlers more money.
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For a while there it looked like the GOP had actually worked with the Dems to do something urgently needed by all Americans! What was I thinking?
I'm not.
