U.S. markets closed

Senators Considering Corporate Tax Breaks for Next Coronavirus Bill: Report

Yuval Rosenberg

Republicans on the Senate Finance Committee are studying a proposal from business lobbying groups to speed up some corporate tax breaks as part of the next coronavirus relief package, The Washington Post’s Jeff Stein reports:

“Under current law, corporations are generally not allowed to claim federal tax credits if the credits exceed their overall tax liability, meaning they cannot receive more from the government than they pay in. If corporations cannot claim their federal tax credits, they can roll them into future years. The current proposal being discussed by several Republicans on the Senate Finance Committee would void that limit, allowing firms to ‘cash out’ on all their credits this year.”

The proposal is reportedly one of the top priorities for business groups and some tax policy experts on the right back the plan. But Steve Rosenthal, a policy analyst at the Tax Policy Center, warned that the change presents risks for the federal government’s finances. “This form of cashing out could strip the government of revenue in the future to give money away to business owners today. That’s very dangerous,” Rosenthal told the Post. “This is another overreach by big businesses to grab tax dollars at a time when small businesses need assistance.”

Read more at The Washington Post.

Like what you're reading? Sign up for our free newsletter.