Federal stimulus favors wealthy investors and major companies

In an article in The Hill, Bob Pozen explores how the recently enacted Cares Act has tax provisions that favor wealthy investors and large companies. There is proposed legislation now in Congress to reverse some of these provisions. Pozen writes:

“Tucked into the 880 pages of the Cares Act are two complex provisions suspending restrictions on the tax deductions of business losses. These provisions allow wealthy investors and large corporations to reap billions of dollars in tax benefits from business losses that are incurred not only due to the coronavirus, but also in years before the pandemic.”