The Rich Could Get $1.7 Million from CARES While the Rest of Us Get $1,200
Rich Americans are not eligible for the $1,200 stimulus check from the government as part of the CARES Act, but a provision that was slipped in regarding tax codes will benefit the wealthy by nearly $2 million a person, more than the total funding that was given to hospitals and more than the total funding provided to state and local governments.
The provision is aimed to undo a limitation in tax codes set forth in 2017 that “temporarily suspends a limitation on how much owners of businesses formed as “pass-through” entities can deduct against their non-business income, such as capital gains, to reduce their tax liability,” according to the Washington Post.
The language in the CARES Act suspends the “pass-through” limitations. The loophole will primarily benefit those earning more than $1 million a year, with 82 percent of the benefits of the policy going to about 43,000 taxpayers. The tax loophole will cost about $90 billion to the government, putting the average paycheck for the wealthy American at $1.7 million.