Name:   MartiniMan - Subject:   Economic illiteracy on parade double time Date:   7/23/2020 12:52:32 PM (updated 7/23/2020 12:55:45 PM)

No, because not only do those companies take their customer's money and use a portion to pay corporate income taxes (or personally by shareholders if they are taxed as a partnership) but their employees likewise pay income taxes on their wages.  Just so you understand, because we view this entirely opposite of each other.....the government creates nothing.  They simply take money from people (either directly or through taxes on businesses that are paid by their customers) at the point of a gun.  That some companies got a portion of that money back through the PPP program is not even remotely welfare....they paid for it and then some....and will continue to do so.

And even the PPP money is not "tax free" despite the misinformation.  Let me once again educate you.  Let's say a company takes a PPP loan for $1M.  And they use that $1M on wages paid over an 8-week period to employees and that $1M is ultimately forgiven.  Right off the bat that $1M is reduced between 21% and 39.6% because they are not allowed to deduct the payroll costs as a business expense.  So the $1M is now down to between $604K and $800K.  And then a portion of the wages that are paid using those funds likewise go to federal income taxes at whatever the marginal rate tax rate is for their employees.  Assuming a blended rate of 25% for all the employees that means that another $250K goes back to the Federal govt in the form of personal income taxes.  Add them all up and of the $1M in forgiven loan proceeds, only between $354K to $550K actually stays with the business. 

Now let's imagine that business has been around for 10 years at the same payroll of $1M every 2 months which equates to $6M per year ($60M in wages paid over that decade).  At a blended income tax rate of 25% that comes to $1.5M in income taxes paid by their employees each year or $15M over ten years.  And note this does not include income taxes paid by the companies or their shareholders, just those paid by their employees.  So for $15M in income taxes they caused to be paid to the Federal govt over 10 years they get a measely $345K to $550K back from PPP.  That my pointy headed friend ain't welfare....corporate or otherwise.

Sue your school system Goofy....do it now.