Rich Americans Getting Stimulus Payments Averaging $1.7 Million, Thanks to Senate Republicans
While most Americans still wait for their $1,200 checks from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, wealthy Americans are getting payments that average $1.7 million.
Forbes reports that 43,000 taxpayers, who earn more than $1 million per year, are each going to get an average $1.7 million windfall via their taxes.
The Washington Post notes this is because of a provision — added to the CARES law by Senate Republicans — that temporarily changes the 2017 Republican tax law.
This temporarily change ends a limitation on how much wealthy owners of “pass-through” businesses (S-Corporations) can deduct against their non-business income, such as capital gains, to reduce their taxes.
The Joint Committee on Taxation (JCT), a nonpartisan congressional body, says this handout for rich people will cost taxpayers about $90 billion in 2020, and will add about $170 billion to the national deficit over the next 10 years.