“More than $57-B in taxes are hiding in the COVID ‘Relief’ bill, they disincentive businesses to base in the US”— Paul Ebeling
Just after Mr. Biden signed the $1.9-T aid/relief/stimulus bill under the pretense of solving our VirusCasedemic ills, he was rushed out of the room by his handlers and avoided all questions from the press. Nonetheless we learn what Mr. Biden penned into law.
There is more than $57-B worth of hidden tax increases.
National Law Review states section 162(m) of the tax code generally prohibits a public company from deducting more than $1-M in compensation paid to a current or former covered employee in a taxable year and under current law the covered employees are the CEO, CFO, and the 3 other highest compensated C-suite officers for the taxable year.
In the final version of the stimulus bill signed by Mr. Biden, “the legislation expands the number of employees who are covered by the $1-M limitation on the deductibility of executive compensation.”
Explained by a House Ways and Means committee minority spokesperson, the Tax Cuts and Jobs Act included a limit that Dems “essentially doubled” to “make it more Draconian.” Dems “are under no illusions that their bill is about growth, so them putting a cap on executive pay is just political messaging.”
Another tax provision in the bill affects businesses’ ability to be based in the US.
“We make it less attractive for these companies to be based in the US or do business here” said the Ways and Means Committee minority spokesperson. “TCJA was about stopping the bleeding throughout the Obama administration where jobs fled overseas – we succeeded. Now Democrats are undoing that progress.”
Democrats used “budget reconciliation” to get the bill to Mr. Biden’s desk, allowing it to pass without GOP votes. The Joint Committee on Taxation estimates that the tax revenue from the changes will generate an estimated $57-B over 10 yrs.
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