New reports this morning indicate that President Trump and his allies are once more looking out for big corporations as they plan for another relief package — but remain virtually silent for workers.
With additional unemployment benefits from the CARES Act slated to expire soon, Americans desperately need support from Washington. But rather prioritizing benefits and assistance to workers and their families, the Trump administration is looking to a tax credit cash-out and payroll tax cut to help out wealthy corporate executives.
- “As the coronavirus ravaged America this spring, 15 business leaders gave President Donald Trump and the Republican Party $1.4 million in big checks while their businesses collected at least $41 million in federal assistance.”
- “The Trump administration stalled on releasing who got loans and now Secretary Mnuchin is suggesting forgiving all the loans regardless of whether companies met the requirements,” said Jordan Libowitz with the nonprofit Citizens for Responsibility and Ethics in Washington…”
The Wall Street Journal: Corporations Seek Tax-Credit Cash-Out in Next Coronavirus Relief Plan
- “Duke Energy Corp., Ford Motor Co., Occidental Petroleum Corp. and others could benefit if Congress includes a tax credit cash-out proposal in its next economic-relief legislation. Such a move, which is among ideas being considered by lawmakers and the Trump administration, could improve corporate cash flow by tens of billions of dollars.”
- “Part of why large businesses seek refundability or what they call monetizing their tax credits is because so many corporations have little or no tax liability following the historic deficit-financed giveaways they received under the Trump tax law,” wrote the lawmakers, led by Rep. Lloyd Doggett of Texas and Sen. Sherrod Brown of Ohio.”
- “A disproportionate share of the aid would go toward the wealthier segment of Americans. The Institute on Taxation and Economic Policy found that 65% of the benefits would be drawn by the richest 20% of taxpayers.”
- “[Seth] Hanlon also said Congress already authorized a deferral in employer payroll taxes for two years under the Coronavirus Aid, Relief, and Economic Security Act. But firms are unlikely to expand operations because of reduced demand, nor are they likely to significantly boost their hiring given the uncertain economic conditions stemming from the pandemic.”