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How the Richest 1 Percent Came Out Big Winners in the Covid Relief Bill

Senate Majority Leader Mitch McConnell (R-Ky.) walks to the Senate floor at the U.S. Capitol on December 17, 2020 in Washington, D.C. (Photo: Tasos Katopodis/Getty Images)

How the Richest 1 Percent Came Out Big Winners in the Covid Relief Bill

Republicans didn't blink twice when they handed out $6.3 billion in tax breaks to their wealthy corporate backers, but when it came to getting direct relief to struggling Americans $600 was the best they could do.

Hidden in the bill combining Covid relief and government spending is a cool $200 billion in tax breaks. An estimated $120 billion of those tax breaks will go to the richest 1 percent of Americans.

Those giveaways include:

--A $2.5 billion break for racecar tracks

--A $6.3 billion write-off for business meals, i.e. the "three-martini lunch" deduction

--A new provision under the Paycheck Protection Program that allows forgiven loans to also be tax deductible, giving businesses the ability to "double dip" into the program

The bill also creates an independent commission to oversee horse racing, at the behest of Mitch McConnell.

There's no question about it: This pandemic has both revealed and exacerbated our already staggering economic inequality.

Republicans didn't blink twice when they handed out $6.3 billion in tax breaks to their wealthy corporate backers, but when it came to getting direct relief to struggling Americans $600 was the best they could do. Their priorities couldn't be clearer.

An Unconstitutional Rampage


Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next.

It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk.

Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support.

This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License.