The Republican-led Senate approved the massive bailout bill – which would be the biggest fiscal stimulus measure ever passed by Congress – by 96 votes to zero late on Wednesday, overcoming partisan negotiations and encouraging Democratic-majority House to vote for it.
With one in three Americans called to stay home, schools and businesses closed across the country to curb infections, Republicans and Democrats are seeking to avoid an economic and social debacle. There are already more than 70,000 infected in the country, more than 1,000 dead.
But where these billions will go?
We can now go on and on explaining who got what but we all know that $1,200 dollars isn’t doing much for anyone, while big businesses get bailed once again with billions. It’s not about being lazy, it’s about having a voice for where our tax dollars are spent.
They’re hoarding cash, firing workers, and waiting for their bailout from the Trump/Mnuchin slush fund.— Chris Costantini (@chriscostantini) March 26, 2020
Wall Street gets 75% of the money. Americans get 25%. That $1,200 you will get over the next few months is the shut-up-money so you won’t complain about this cycle of Wall Street bailouts to the tune up to 1.5 Trillion.
Money for airlines and corporations
Big corporations and airlines are getting $504 billion.
Airlines would not be able to increase executive salaries by more than $425K annually, and those earning more than $3 million a year could see their salaries reduced. Poor executives.
For passenger airlines such as Delta, United and AA, the package includes $50b in assistance, with half in direct funding and half in loans and loan guarantee.This means that airlines will get $25 billion cash injection.
While Delta Air Lines don’t mind getting cash grants and loans from goverment, they do mind paying federal taxes though.
According to Itep, Delta Air Lines is manipulating the tax system to avoid paying even a dime in tax on billions of dollars in U.S. profits.
Not just avoiding, they are even managing to get a corporate tax rebate (an amount of money that is paid back to you if you have paid too much tax!?). In 2018 Delta Air Lines reported $5 billion of U.S. income and claimed a federal income tax rebate of $187 million.
How they do this? They use a loophole in the law called accelerated depreciation. According to Wikipedia this term “refers to any one of several methods by which a company, for ‘financial accounting’ or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life”
According to Travel Weekly, Delta Air Lines reported net income of $4.77 billion in 2019. And Delta’s CEO Ed Bastian said that they had the best year, ever. He added how their profits are “industry leading“! That was just 2months ago. So, why they need a bailout money now. Oh yes, executive bonuses and stock buybacks.