At the start of the China virus pandemic, Congress created the Paycheck Protection Program. This program was meant to save small businesses that were quickly slammed by state-mandated shutdowns. Instead of firing their employees, they could get loans from the government to keep them working.
While that appeared to be a successful program, it was riddled with problems. Despite warnings from Republicans that the money would run out, Democrats delayed replenishing it. Then, the money ran out. The loans were supposed to go to struggling small businesses. Yet, major corporations and even some universities took millions.
Individuals were even able to lie to the government to bilk the program of millions, which they spent on themselves.
But the problems have only continued. Even those these were non-taxable loans, the IRS tried to trip up small businesses by taxing them on the use of the funds. Congress was able to block the IRS’s greedy hands from taxing these businesses. But good news! Greedy blue states are doing it anyway.
But now, some states are re-introducing the issue, opting not to conform to the federal tax code guidelines and instead moving to unexpectedly tax PPP recipients…
“The reality is that our small business owners don’t have that cash laying around. They used it for what they were asked to use, and told to use it, for,” meaning, maintaining payrolls during the lowest point of the pandemic last year. Ortiz says that the state taxes will be “completely unexpected expenses to most small business owners” and could send many more to insolvency or closure…
“We’re hearing this happen left and right in New York City. A lot of restauranteurs and restaurant owners are just closing up shop and saying ‘this is ridiculous, we don’t want any part of it,'” said Ortiz. [Source: Just the News]
Even though Biden’s $1.9 trillion bloated spending bill will send billions to blue states, their Democrat officials still want to shake down small businesses for tax revenue. These are the same leaders that kept their states shut down for nearly a year—choking the life out of their economies. Yet they are so greedy for cash, they’d punish these businesses further, by taxing them from the loans they needed to survive.
This is like something out of a Charles Dickens novel. These Democrats are money-hungry overlords who are punishing people just trying to make ends meet. Do these liberals even care they are destroying the very fabric of their states?
Business advocates argued that taxing these loans “would make it cheaper for some businesses to fire employees and repay their PPP loans than face the tax consequences.” That’s how bad it is. In New York, many restaurants are just closing down altogether. Those who can afford it are moving to states like Florida, that aren’t led by monsters like Cuomo or Newsom.
It’s made even worse by the Biden administration, who is ignoring small businesses almost deliberately. His terrible $1.9 trillion spending package doesn’t even address struggling businesses. Just a fraction of it goes into the PPP.
Critics say Biden is showing “no leadership.” It’s hard to disagree.