COVID19 crisis has pressed the government to take measures to ease the crisis. Taxpayers play a key role during such times of crisis. It seems that the millionaires are having a smooth sail as far as tax benefits are concerned. Data has it that $20 billion of tax liability will be saved by country’s millionaires and billionaires in the year 2020.
This has been made possible by the change in tax law. And many businesses who depend on streamlined foreign offshore procedure have benefitted from this. This comes in the coronavirus economic relief package that Republicans have brought in. And it came through a Non-Partisan congressional committee. The change in law will benefit more than 82 percent of people who are earning more than $1 million each year. Joint committee of taxation gave an analysis, which says that 95 percent of individuals who will profit from the law change earn $200,000 or more.
This new change permits businesses that come in ‘pass-through entities’ to reduce their tax as much as they want till it comes against income unrelated to the business. Earlier they could dedicate $250,000 as a maximum amount as loss from any income that is not from their business and comes from stocks or bonds. Republicans stated that the earlier provision which was passed in 2017 was a mistake. The earlier provision was to balance other tax benefits going to organizations.
It is notable, that less than 3 percent benefits will be going to Americans who are making less than $100,000 per annum. Shortly after this analysis report was published, Whitehouse has called for repealing of this provision. Information is being dug whether anyone from the Trump administration is also benefiting from the change. In its statement, Whitehouse called it a scandal to loot American Taxpayers.