Paul L. Caron

Wednesday, September 30, 2020

Shay: Turning To The Government (For PPP Money) In Time Of Need

Stephen E. Shay (Boston College), Turning to the Government (for PPP Money) in Time of Need, 168 Tax Notes Fed. 841 (Aug. 3, 2020):

Tax Notes FederalThis article examines the financial relationship between Americans for Tax Reform (ATR) and Paycheck Protection Program (PPP) borrower Americans for Tax Reform Foundation (ATRF). ATRF is an apparently insolvent “zombie” foundation heavily indebted to ATR. ATR indirectly benefits from the ATRF PPP loan through the support for ATR employees who simultaneously are ATRF employees, though ATR was itself ineligible for a PPP loan under the CARES Act.

The article critically evaluates ATR’s rationales for ATRF’s receipt of a PPP loan, notwithstanding their small government ideology, including that the loan it compensates for a “government taking.” ATR’s actions, if not its words, support a role for government helping those in need.

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