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America’s richest real estate investors could pocket $1.6 MILLION each from the coronavirus stimulus package

SOME of the richest Americans could pocket approximately $1.6million from Donald Trump's $2trillion coronavirus stimulus bill.

Wealthy real estate investors could net a potential bonanza thanks to a carefully crafted clause.

 Trump signed a $2trillion coronavirus stimulus bill
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Trump signed a $2trillion coronavirus stimulus billCredit: Alamy Live News

Senator Sheldon Whitehouse (D - RI) highlighted the clause on the same day many Americans who make under $95,000 began to receive their $1,200 stimulus checks.

"According to the [Joint Committee in Taxation], 43,000 individual tax filers covered by one of the provisions would see their tax liability fall by a combined $70.3 billion in 2020," writes Senator Whitehouse.

"The JCT analysis shows nearly 82 per cent of those who will benefit from that provision make $1 million or more, with 95 per cent making over $200,000."

That adds up to as much as $1.6 million in tax breaks for some of those individuals in 2020 alone.

President Donald Trump and son-in-law Jared Kushner are among those who have the potential to score big tax savings.

It comes as tens of millions of Americans are due to receive their stimulus checks designed to help then through economic hardships brought on by the coronavirus pandemic.

The IRS said it is issuing the money as "fast as we can" - with families also getting $500 per child.

Some Americans are already out spending the cash, with Debbie Hicks, from Pittsburgh, telling CBS: "I feel great. I’m out here spending it now.”

Martin Loebig, also from the city, added: "I’ve been out of work for a couple weeks now because of this whole thing.

"I’ll be glad when this is all over. In the meantime, at least I can survive, get some food for a while."

 Wealthy real estate investors, such as Donald Trump and son-in-law Jared Kushner, could potentially benefit from a clause in the coronavirus stimulus bill
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Wealthy real estate investors, such as Donald Trump and son-in-law Jared Kushner, could potentially benefit from a clause in the coronavirus stimulus billCredit: Alamy Live News

However amid the tax break controversy, Sen Whitehouse said: "It’s a scandal for Republicans to loot American taxpayers in the midst of an economic and human tragedy."

“This analysis shows that while Democrats fought for unemployment insurance and small business relief, a top priority of President Trump and his allies in Congress was another massive tax cut for the wealthy. Congress should repeal this rotten, un-American giveaway and use the revenue to help workers battling through this crisis.”

He is not alone in his outrage, and recruited a politician from the heartland to join him in sending a message to the White House.

"For those earning $1 million annually, a tax break buried in the recent coronavirus relief legislation is so generous that its total cost is more than total new funding for all hospitals in America and more than the total provided to all state and local governments,” says Senator Lloyd Doggett (D - TX).

“Someone wrongly seized on this health emergency to reward ultrarich beneficiaries, likely including the Trump family, with a tax loophole not available to middle class families. This net operating loss loophole is a loser that should be repealed.”

The men go on to claim that the changes included in the CARES Act would allow wealthy taxpayers to use losses in certain years to avoid paying taxes in other years.

That adds up to a $195 billion loss in government revenue over the next decade according to the JCT.

The two men are now waiting for a response to the letter to senior Trump administration officials "may shed light on the origins of the Republican provisions."

But the stimulus package is expected to help millions of struggling Americans as the virus crisis continues - with more than 600,000 people infected in the US.

Dem senate leader Chuck Schumer previously described the stimulus package as "help on the way" for people on lower incomes.

He said: "We didn't want to put corporations first. So many people have been thrown out of work."

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