A nonpartisan congressional body found that nearly 82% of benefits from a tax provision in the most recent coronavirus relief package will go to the nation's millionaires and billionaires and cost 'taxpayers' an estimated $90 billion this year alone.
Rep. Lloyd Doggett (D-Texas) explained,
The tax provision in question "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 Washington Post explained. "The limitation was created as part of the 2017 Republican tax law to offset other tax cuts to firms in that legislation."
Less than 3% of people set to benefit from the suspension earn under $100,000 per year, according to the JCT. The controversial provision is part of a set of tax changes in the coronavirus package that is expected to add about $170 billion to the national deficit over the next decade. The new JCT analysis also "included the impact of another tax change in the coronavirus relief legislation that allows firms to write off 100% rather than 80% of their losses, reversing another change in the 2017 tax law."
Rep. Lloyd Doggett (D-Texas) explained,
"for those earning $1 million annually, a tax break buried in the recent coronavirus relief legislation is so generous that its total cost is more than total new funding for all hospitals in America and more than the total provided to all state and local governments. Someone wrongly seized on this health emergency to reward ultrarich beneficiaries, likely including the Trump family, with a tax loophole not available to middle class families."
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