How Did 18 Billionaires Still Receive $1,200 Stimulus Checks During COVID-19?

Some of America's richest people pocketed stimulus checks that were intended to ease the financial burden for those struggling during the economic uncertainty of the pandemic. According to a recent investigation, 18 billionaires were among those collecting direct payments, which amounted to a tiny fraction of their overall wealth.

ProPublica found that stimulus checks created by the $2.2 trillion CARES Act passed in March 2020 found their way into the accounts of millionaires and billionaires alike. Under the CARES Act, those who made less than $75,000 and couples whose combined income was less than $150,000 would qualify for a one-time direct payment of $1,200.

Using a variety of tax schemes, including business write-offs and deductions, wealthy Americans wound up qualifying for the $1,200 checks by reporting negative incomes to the IRS.

ProPublica said that it was able to identify 270 ultra-wealthy Americans who were able to use deductions on a large enough scale that they could qualify for the checks by listing negative incomes on their tax returns. Wages did not make up a significant part of the tax returns examined by ProPublica, with only 1.4% of the incomes they examined coming in the form of wages.

Several prominent names were included on the list of billionaires examined by the outlet. Financier George Soros and his son Robert each received stimulus checks from the government, but said through their spokesperson that they each returned them. Robert Dart, CEO of Dart Container Corp., also said through corporate counsel that he returned the stimulus check, as well.

Glen Taylor, who formerly owned the NBA's Minnesota Timberwolves, and Terry Pegula, owner of the NHL's Buffalo Sabres and the NFL's Buffalo Bills, each reportedly received stimulus checks. Former Lehman Brothers CEO Richard Fuld and the founder of the former Blackwater private military company Erik Prince, were also found to be on ProPublica’s list of billionaires who received checks.

Taxing the ultra-wealthy served as a sticking point in debates by Democratic members of Congress, who are looking to overhaul the tax code with hikes on billionaires in particular. However, moderate Democrats opposed any “billionaire tax” in the final bill while fighting other tax raises on higher-income Americans.

Sen. Ron Wyden, D-Ore., remarked after the ProPublica investigation was published that the results proved that a tax on billionaires was a necessity.

"America's tax code is woefully ill-equipped to tax billionaires fairly, or even ensure they pay anything at all. It's time for a Billionaires Income Tax," Wyden tweeted on Thursday morning.