As Congress works to finalize the details of the latest coronavirus relief legislation, several Republicans have tweeted their demands that Paycheck Protection Program loans be made tax-deductible as part of the new bill.
It is unconscionable that any COVID relief bill would hit small businesses with a tax penalty after government forced them to shut down. PPP deductibility absolutely MUST be in any relief package.
— Rep. Chris Stewart (@RepChrisStewart) December 20, 2020
Perhaps the top issue I hear from small businesses is the need to fix PPP to allow for deductibility. Our small businesses are the engines of our local economies and employ millions of Americans; we must get this fixed.
— Rep. Mark Green (@RepMarkGreen) December 20, 2020
And at least one Democrat has tweeted in favor of it.
As we inch ever so close to voting on emergency covid relief this evening, it’s imperative that forgivable PPP loans not be taxable. Ds and Rs recognize that the lack of deductibility would undermine the spirit of the program; to preserve small businesses, jobs, and futures. https://t.co/nm5l1UZ26w
— Rep. Dean Phillips 🇺🇸 (@RepDeanPhillips) December 20, 2020
Treasury Secretary Steven Mnuchin is also pushing for PPP deductibility to be part of the new package.
On a House GOP conference call w/ Steven Mnuchin right now, I'm told several Republicans have spoken up to complain about the lack of a PPP tax fix in the relief deal.
"Members are mad," said one source on the call.
— Melanie Zanona (@MZanona) December 20, 2020
Senate majority leader Mitch McConnell (R-Kentucky) tweeted Sunday afternoon that “around-the-clock negotiations” on the latest coronavirus relief package are just “hours away from completion.”
I think both sides agree: Our around-the-clock negotiations on COVID relief are hours away from completion. Our citizens need this waiting to end. Thousands of Americans are being robbed of their lives every day. Working families are hurting. Let’s finally get this done today.
— Leader McConnell (@senatemajldr) December 20, 2020
So, presumably, we will find out in the coming hours and days whether attempts by GOP members to make PPP loans tax-deductible as part of the latest coronavirus legislation prove successful.