“Democrats and left-leaning groups are criticizing provisions in coronavirus relief legislation relating to the tax treatment of business losses.
But some Democrats have been arguing that the provisions in the legislation provide businesses with tax benefits that are too broad, and that one provision in particular is a boon for the wealthy.
“Even someone who believes that Congress could loosen these laws to help businesses deal with the crisis would have to come to the conclusion that the CARES Act went way too far,” said Steve Wamhoff, director of federal tax policy at the left-leaning Institute on Taxation and Economic Policy.
Legislation President Trump signed late last month, known as the CARES Act, made several tax changes relating to businesses’ net operating losses (NOLs) – reversing restrictions imposed by Republicans’ 2017 tax-cut law. The CARES Act provisions were aimed at providing businesses with more cash flow so that they can better manage the coronavirus crisis.