Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

Dear Common Dreams Readers:
Corporations and billionaires have their own media. Shouldn't we? When you “follow the money” that funds our independent journalism, it all leads back to this: people like you. Our supporters are what allows us to produce journalism in the public interest that is beholden only to people, our planet, and the common good. Please support our Mid-Year Campaign so that we always have a newsroom for the people that is funded by the people. Thank you for your support. --Jon Queally, managing editor

Join the small group of generous readers who donate, keeping Common Dreams free for millions of people each year. Without your help, we won’t survive.

Senate Majority Leader Sen. Mitch McConnell (R-KY) speaks to members of the media during a news conference at the U.S. Capitol on March 17, 2020 in Washington, D.C. (Photo: Alex Wong/Getty Images)

'An Utter Disgrace': GOP Stimulus Plan Would Cut Taxes for Corporations While Denying Benefits to Poorest

"Senate Republicans are using the COVID-19 pandemic to cut corporate taxes again and stop you from getting paid sick leave."

Jake Johnson

"Heartless," "cruel," and "appalling" were just some of the adjectives progressive critics and analysts used late Thursday to describe the Senate GOP's newly unveiled trillion-dollar economic stimulus package which—by design—would completely deny direct cash payments to the poorest Americans while cutting taxes for corporations, dishing out tens of billions in bailout funds to major industries, and restricting paid leave benefits that were just signed into law this week.

"The Senate GOP package is an utter disgrace," tweeted Richard Trumka, president of the AFL-CIO. "It gives free money to corporations, ignores the health crisis, and does nothing to keep people working or help the unemployed. The labor movement will oppose this Main St. bailout of Wall St. with everything we have."

"I don't know how else to describe this but wantonly wicked. The poorest get zero; low-income households get half of what middle-income households get; and a kid counts for 40% of an adult."
—Daniel Hemel, University of Chicago Law School

The Republican plan, released as the economic fallout from the coronavirus outbreak continues to worsen, would provide means-tested cash payments of up to $1,200 per adult and $500 per child, with the precise amount dependent upon 2018 tax filings.

"Taxpayers with little or no income tax liability, but at least $2,500 of qualifying income, would be eligible for a minimum rebate check of $600 ($1,200 married)," the Republican proposal states. "Qualifying income includes earned income, as well as Social Security retirement benefits and certain compensation and pension benefits paid to veterans."

Observers were quick to point out a gaping hole in the Republican plan: Adults with no qualifying income would get nothing.

"I don't know how else to describe this but wantonly wicked," said Daniel Hemel, a tax expert at the University of Chicago Law School. "The poorest get zero; low-income households get half of what middle-income households get; and a kid counts for 40% of an adult."

Kyle Pomerleau, an economist and resident fellow at the conservative American Enterprise Institute, estimated that "roughly 64 million filers earning less than $50k would not receive the full rebate amount of $1,200/$2,400" under the GOP proposal.

"For a single filer, income must be at least about $23k to get the full $1,200," Pomerleau noted. "For married couple filing jointly, [adjusted gross income] must be about $47k to get the full $2,400."

Senate Majority Leader Mitch McConnell (R-Ky.) pitched the GOP proposal as a starting point for stimulus negotiations with the Democratic Party, but Democratic leaders quickly dismissed the plan as a non-starter.

"We are beginning to review Senator McConnell's proposal, and on first reading, it is not at all pro-worker and instead puts corporations way ahead of workers," House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) said in a joint statement Thursday night.

Even two Republican lawmakers—Sens. Mitt Romney (R-Utah.) and Josh Hawley (R-Mo.)—dismissed the plan as regressive.

While skimping on aid low-income Americans, the Republican proposal—formally known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act—contains generous gifts for big corporations and billions in relief for industries hit hard by the coronavirus crisis, including $50 billion for airlines.

The 247-page Republican legislation, according to the New York Times, "includes a raft of temporary changes to the tax code that would reduce the tax liability of large corporations, many of them overriding provisions in the 2017 tax overhaul that were meant to raise revenue to offset corporate rate cuts."

The bill would also "place new limits on a paid-leave program that Congress passed and Mr. Trump signed into law this week," the Times reported, "shielding small business owners from any costs of paid leave for workers affected by the virus—and limiting how much pay those workers could receive if they are forced to stay home."

"Senate Republicans are using the COVID-19 pandemic to cut corporate taxes again and stop you from getting paid sick leave," tweeted advocacy group Swing Left. "They called it the CARES Act because Mitch CARES about big businesses, not you."


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

"I'm sure this will be all over the corporate media, right?"
That’s what one longtime Common Dreams reader said yesterday after the newsroom reported on new research showing how corporate price gouging surged to a nearly 70-year high in 2021. While major broadcasters, newspapers, and other outlets continue to carry water for their corporate advertisers when they report on issues like inflation, economic inequality, and the climate emergency, our independence empowers us to provide you stories and perspectives that powerful interests don’t want you to have. But this independence is only possible because of support from readers like you. You make the difference. If our support dries up, so will we. Our crucial Mid-Year Campaign is now underway and we are in emergency mode to make sure we raise the necessary funds so that every day we can bring you the stories that corporate, for-profit outlets ignore and neglect. Please, if you can, support Common Dreams today.

 

Abortion Rights Defenders Applaud Judge's Block on Utah 'Trigger Ban'

"Today is a win, but it is only the first step in what will undoubtedly be a long and difficult fight," said one pro-choice advocate.

Brett Wilkins ·


Scores Feared Dead and Wounded as Russian Missiles Hit Ukraine Shopping Center

"People just burned alive," said Ukraine's interior minister, while the head of the Poltava region stated that "it is too early to talk about the final number of the killed."

Brett Wilkins ·


Biodiversity Risks Could Persist for Decades After Global Temperature Peak

One study co-author said the findings "should act as a wake-up call that delaying emissions cuts will mean a temperature overshoot that comes at an astronomical cost to nature and humans that unproven negative emission technologies cannot simply reverse."

Jessica Corbett ·


Amnesty Report Demands Biden Take Action to End Death Penalty

"The world is waiting for the USA to do what almost 100 countries have achieved during this past half-century—total abolition of the death penalty," said the group.

Julia Conley ·


Pointing to 'Recently Obtained Evidence,' Jan. 6 Panel Calls Surprise Tuesday Hearing

The announcement came less than a week after the House panel delayed new hearings until next month, citing a "deluge" of fresh evidence.

Common Dreams staff ·

Common Dreams Logo