Tax Law Limits May Make Virus-Hit Companies Even More Vulnerable

Parts of the 2017 tax act and recent rules from Treasury could end up kicking companies while they are down, as the coronavirus outbreak threatens to trigger a recession.

The White House and lawmakers are planning tax relief to combat some of the impact of Covid-19, the official name for the disease, which Trump hopes can include several months of a payroll tax cut. Major stock indices and oil prices have tanked, as people have stayed home and steered clear of travel and companies have faced supply chain disruptions and lowered or withdrawn their earnings estimates.

One of the tax ...