Current Events > I think I convinced two Democrats to oppose a bill they originally cosponsored

(+) Yeah! (+)

Haha take that, legislation that will still certainly pass very easily without Democratic support!

Working and living in Arkansas is depressing

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it's kind of technical, basically it lets businesses that have ppp loans forgiven to deduct expenses paid with ppp loans from their taxable income. But since ppp loans that were forgiven don't count as income, that gives businesses a tax subsidy on top of the federal government paying their expenses directly

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I lied I didn't convince either of them smh

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Given that PPP loans were designed specifically to help small businesses (ignoring abuses), wouldn't that loophole actually be a big boon to them, especially right now when they're struggling to keep from going under? Obviously more direct support would be preferred, but this seems like an accidental good thing.

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It's definitely a big boon to business, and it's not accidental. But the vast majority of the tax benefits will accrue to the wealthy, because of how income taxes are structured.

But in either case it's just bad tax policy to let a business write off expenses it pays for out of something that didn't count as income. You can be in the red on paper until you make enough profit to negate the forgiven loans

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Not only did it sail through the house committee, they amended it to add nearly every senator as a cosponsor. Yikes

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