WASHINGTON (NEXSTAR) — A new study found the $2 trillion CARES Act includes a tax break for the ultra-rich.
Democrats asked the nonpartisan Joint Committee on Taxation to take a closer look at the federal aid package which was celebrated as a bipartisan effort to help American families and businesses through the economic crisis.
Texas Congressman Lloyd Doggett and Rhode Island Senator Sheldon Whitehouse asked for the review. They said Republican senators included the $195 billion tax break for the rich.
Whitehouse said most Democrats had no idea.
“How cynical and wrong in the midst of all this tragedy it is to try to pull off a stunt like this,” said Whitehouse.
The provision allows tax breaks for the past two years—before the pandemic struck.
“They did great in the stock market last year and they can offset their gains against paper losses,” Doggett said.
Middle class Americans got $1,200 stimulus checks. Democrats say because of this tax break the wealthiest Americans could get an average tax break of $1.7 million. Critics argue such a break will not help the economy.
“It is designed pure and simple for a few big real estate developers like Donald Trump,” Doggett said.
South Dakota Republican Congressman Dusty Johnson said every Democrat supported the aid package and Democrats also got some of what they wanted.
“Were some of the tweaks to unemployment insurance not my favorite? Yes,” he said.
Doggett and Whitehouse plan to introduce a bill to try to repeal the tax breaks for the wealthy.
