Politics

Dems Manage $60 Billion in Tax Hikes Into COVID Economic Relief Bill

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The $1.9 trillion COVID relief bill has been called the most significant expansion of the welfare state since the Great Society.

Politico reported the approximately $60 billion in tax increases are directed at businesses and business owners, i.e. entities that create jobs and wealth rather than government dependence.

The news outlet explained that the tax increases enabled the COVID-19 relief bill to be passed through the budget reconciliation process, thereby only requiring a majority vote in the Senate, bypassing a potential GOP filibuster.

“The tax increases Democrats picked to help keep their plan’s cost in check had the political benefit of being arcane. Unlike things like raising the corporate tax rate or upping the top marginal tax rate on the rich, the ones they chose won’t produce many headlines,” according to Politico.

“Since the provisions were added late in the legislative process, lobbyists didn’t have much time to rouse opposition to the plans.”

One of the changes limits the amount of losses people can claim on their personal income taxes to $500,000 for unincorporated businesses.

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