Coronavirus Stimulus Tax Break Benefits Millionaires

Coronavirus Stimulus Tax Break Benefits Millionaires

“More than 80 percent of the benefits of a tax change tucked into the coronavirus relief package Congress passed last month will go to those who earn more than $1 million annually, according to a report by a nonpartisan congressional body ….

The provision, inserted into the legislation by Senate Republicans, temporarily suspends a limitation on how much owners of businesses formed as ‘pass-through’ entities can deduct against their nonbusiness income, such as capital gains, to reduce their tax liability. 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 to the national deficit over the next 10 years, according to the Joint Committee on Taxation (JCT), the nonpartisan congressional body.”

— “Tax change in coronavirus package overwhelmingly benefits millionaires, congressional body finds,” Jeff Stein, Washington Post

More:

“Coronavirus stimulus law has a tax loophole just for millionaires, report says,” Charles Duncan, McClatchy

“Millionaires to reap 80% of benefit from tax change in US coronavirus stimulus,” Amanda Holpuch, The Guardian

Related:

“White House, GOP face heat after hotel and restaurant chains helped run small business program dry,” Jonathan O’Connell, Washington Post

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