COVID relief package contains a $120 billion gift to the superwealthy - 2020-12-16
Back in July, I wrote about how lawmakers from both parties were backing a COVID relief provision that, in effect, is a massive, unnecessary bailout for America's richest business owners. Congress never managed to come together on that particular bill, so the effort was tabled for a while, but guess what: It's back, and even better for the big fish.
The bipartisan provision, which is opposed by the IRS and also, oddly enough, by Treasury Secretary Steve Mnuchin, is known as a "double-dip" benefit. It allows businesses that get PPP loans—which the new COVID bill aims to expand—to not only have those loans forgiven, but to be able to deduct the loan amount spent on business expenses from their taxable income.
Getting one benefit or the other seems reasonable, but allowing both would be a major departure from accepted policy and an unprecedented waste of taxpayer money, critics say, that would primarily benefit wealthy law firms, accounting practices, and other well-to-do "pass through" businesses that have dominated the process.