Tax Law for the Closely Held Business blog author Lou Vlahos’ op-ed entitled “Economic Losses: Blame the Virus? Not Entirely” was published yesterday, March 26, in The Empire Report.
Below is an excerpt of the article:
In response to this stressful – but hopefully short-lived – business environment, the Federal government has taken some extraordinary measures over the last few weeks to help American businesses, and the public generally, to cope with what is expected to be the significant economic toll attributable to the Coronavirus.
Businesses that are required to provide paid leave for employees are being granted a refundable tax credit pursuant to the recently enacted Families First Coronavirus Response Act to defray the associated cost.
And on March 25, the Republican and Democratic leadership in the Senate announced an agreement on an economic stimulus plan that provides for more than $2 trillion in spending, as well as tax breaks, to bolster American business and consumers. A well-reasoned Keynesian-inspired approach? Doubtful, because how will this infusion of cash into the economy stimulate consumer demand under the circumstances in which we find ourselves? After all, folks are either not allowed to, or are fearful of, going out to places where they may encounter groups of other people.
To read the full op-ed, please click here.