The Senators themselves are telling us – the American taxpayer got screwed…
Most people got a $1,200 check- but for many MILLIONAIRES there is a $1,600,000 tax benefit over time.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act trumpeted its assistance for “working families” and “small businesses”, but it contains a huge benefit for wealthy business owners.
The act allows pass-through businesses — ones taxed under individual income, rather than corporate — an UNLIMITED amount of deductions against their non-business income, such as CAPITAL GAINS. They can also use losses to avoid paying taxes in other years.
“It’s a scandal for Republicans to loot American taxpayers in the midst of an economic and human tragedy,” said Senator Sheldon Whitehouse (D-RI).
This is one of many common & completely legal tax tricks used by millionaires to dodge paying taxes. (Trump won’t release his taxes.)
The CARES legislation gave ~43,000 individual tax filers who make AT LEAST $1 million a year a savings of $70.3 billion — or about $1.6 million EACH, according to the Joint Committee on Taxation.
The rich sure do get richer, eh? Meanwhile, the average American taxpayer bears the burden of financially supporting the same economy that caters to wealthy millionaires who avoid paying taxes through loopholes and legislative giveaways.
Sources:
https://www.whitehouse.senate.gov/imo/media/doc/116-0849.pdf