DeLauro, Cohen Lead Colleagues in Call to Repeal $170 Billion Tax Break for Real Estate Developers, Hedge Fund Owners in CARES Act
Statement
Today, Congresswoman Rosa DeLauro (CT-03) and Congressman Steve Cohen (TN-09) announced they would send a letter to House and Senate leaders next week calling for the repeal of a $170 billion tax break in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) for hedge fund owners and real estate developers. While most Americans will get a one-time economic impact payment of $1,200, the small number of wealthy individuals eligible for this tax break stand to gain an average tax break of $1.6 million. DeLauro and Cohen's letter has strong and growing support within the Democratic Caucus, with more than 30 cosigners to date.
"Across our country, we are seeing inspiring stories as we deal with the biggest economic and health crisis our nation has ever seen," said Congresswoman DeLauro. "Nurses and doctors are in intensive care units trying to save our humanity. Famers, transportation workers, and grocery store clerks are toiling around the clock to feed our families. Credit unions and banks are delaying mortgage payments and forbearances. Now is the time for shared sacrifice--not massive, retroactive tax breaks going back to 2018 and 2019 for the wealthiest in our country. With the Payment Protection Program having run out of funds, repealing this $170 billion tax break would easily fund tens of thousands of loans for small businesses in Connecticut and across the country. I urge my colleagues on both sides of the aisle to stand with us and demand this outrageous carve-out be repealed immediately."
"It's unseemly, obscene and immoral for Senate Republicans to want to give an average of $1.6 million in tax breaks to the richest individuals, 80 percent of whom make more than $1 million a year, while providing just $1,200 in relief to people who need it to buy groceries and medicine," said Congressman Cohen. "It is estimated this carve out will cost us $90 billion in the first year. This provision must be repealed."
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