John,

Millions of Americans face a dark and dangerous winter as key provisions of the COVID-19 CARES Act―including extended unemployment benefits, sick leave and housing aid―are all about to expire.

We’re encouraged that lawmakers on both sides of the aisle are again trying to reach agreement on a pandemic relief bill before the end of the year. But Congress must reject costly tax breaks for the wealthy and corporations that would only further heighten the economic inequalities already exacerbated by the pandemic.

Congress must instead deliver aid to those who need it most and reject the calls of high-priced Wall Street lobbyists to shower the rich and corporations with further tax breaks.

Consider this: Americans for Tax Fairness released a report this week showing that the country’s 651 billionaires saw their wealth increase by $1 trillion―or 36%―since the start of the pandemic. That wealth growth alone could finance a $3,000 stimulus check for all 330 million Americans.[1] Those billionaires would not be any “poorer” for it.

Write to your U.S. Senators and Representative and demand that they pass a pandemic relief package that puts people first and rejects tax breaks for millionaires, billionaires and wealthy corporations that are currently being considered in negotiations.

Here are just a few of the most egregious tax breaks being discussed by leaders in Congress:

• Business Meals Tax Deduction―which will allow businesses to deduct from taxable income the full cost of “business” meals, up from 50% today. Expanding this tax break would mostly help high-paid executives enjoying three-martini lunches and the fancy restaurants they frequent.

• Letting Businesses Cut Their Taxes by Deducting Expenses the Public Paid For―permitting such deductions amounts to businesses double dipping: they receive tax free income from taxpayers when their PPP loan is forgiven, then deduct expenses that public income paid for to cut their own taxes.

• Tax Extenders―Thirty-three temporary tax provisions are set to expire at the end of this year. Their cost is over $23 billion over 10 years. These tax provisions would be better directed toward direct pandemic relief.

• CFC Look Through Rule―allows a U.S. multinational corporation to shift profits among its offshore subsidiaries without triggering the tax bill that would normally be due.

• Expansion of 529 Accounts―funds for two years Sen. Ted Cruz’s bill, which provides tax credits to those who send their kids to private schools or are homeschooled. This taxpayer subsidy mostly benefits the wealthy who send their kids to private schools while drawing resources away from public schools.

In the midst of a national health and economic emergency, Congress must focus on getting relief to those who need it most. No time, effort or money should be wasted on tax breaks that mostly or exclusively benefit the wealthy and corporations that have best weathered the crisis and in some cases thrived during it.

Write to your members of Congress now and demand a COVID relief package that puts people, not the rich and corporations, first.

Thank you for all that you do for the working people of this country who are so-often left behind.

Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund

[1] “Net Worth of U.S. Billionaires Has Soared by $1 Trillion—to Total of $4 Trillion—Since Pandemic Began,” Americans for Tax Fairness and Institute for Policy Studies, Dec. 9, 2020