Objective: To eliminate the American Rescue Plan Act of 2021 (ARPA) in its entirety, thereby removing provisions that may adversely affect low-income earners, such as the lowered threshold for third-party payment reporting.
Background: The ARPA was enacted to provide economic relief during the COVID-19 pandemic. However, certain provisions, like the reduction of the Form 1099-K reporting threshold to $600, have raised concerns about their impact on low-income individuals. This change increases the administrative burden on small-scale sellers and gig workers, potentially leading to unintended tax liabilities.
Proposal:
- Full Repeal of ARPA: Initiate legislative action to repeal the ARPA, thereby removing all associated provisions, including the lowered Form 1099-K reporting threshold.
- Assessment of Economic Impact: Conduct a comprehensive review to identify and mitigate any negative consequences of the repeal on low-income populations.
- Implementation of Targeted Relief Measures: Develop and propose new legislation aimed at supporting low-income earners without imposing undue administrative burdens or unintended tax liabilities.
Rationale: Repealing the ARPA will address concerns regarding its provisions that may inadvertently harm low-income individuals. By removing these provisions and implementing targeted relief measures, we can better support vulnerable populations without imposing additional burdens.
Conclusion: The proposed repeal of the ARPA, coupled with the development of targeted support measures, aims to protect low-income earners from unintended negative impacts while ensuring effective and efficient economic assistance.
TL;DR? Biden’s “American Rescue Plan Act of 2021” does nothing to “Rescue America”, it only places more burden on those already burdened.
While taxes as a whole need serious reform, this should be an easy first step for President Trump.
Let us be “unburdened by what has been”.