YOU GOT $1200 THE RICH GOT FAR MORE
You got $1200 the rich got far more. Looking back at the CARES Act, designed to be a bailout for the economy during the COVID crisis, we can now determine that the amount of money given to individuals $1200, and more to families, was about the same amount that was given to those who really didn’t have any financial crisis at all. It was a handout by the government to the ultra rich, at a time when the economy was in free fall and the deficits were going thru the roof. The best known feature of the CARES Act, as it’s known, is the cash grant of up to $1200 per adult, and $500 per child for households whose income was less than $99,000 for single taxpayers and $198,000 for couples. These grants are nontaxable, which makes then even more valuable. Some 159 million stimulus payments have gone out, according to the IRS. You got $1200 the rich got far more.
Several of the CARES Act’s provisions provided benefits worth more than the $1200 to upper class people who didn’t qualify for the payments. And some other provisions provided vastly bigger benefits to the rich, to corporations and to a relative handful of ultra rich folks. These are not the type of people who need IRS Tax Resolution. These provisions directly benefited the President and his family. The benefits cost the Treasury $257.95 billion, almost as much as the CARES Act cost of $292.37 billion., according to the Joint Committee on Taxation.
By eliminating the Required Distributions from Retirements Accounts, the Treasury lost $11.72 billion. Ultra rich individuals who don’t need the money, but would have been required to take the distribution were allowed to sidestep the required distribution, causing the lost tax revenue. People aged 72 and up who have IRSs or 401(k)s or other “defined contribution” retirement accounts must take federally taxable required minimum distributions from them every year. But this year, thanks to the CARES Act, individuals don’t have to take any retirement distributions at all.