Tax Policy Blog

April 2nd Evening State Tax Update

California extends tax filing and payment deadline to July 31 for a broad spectrum of business taxes as Virginia keeps May 1st tax filing deadline.

Tracking State Legislative Responses to COVID-19

Many states are racing to pass budgets, emergency COVID-19 supplemental appropriations, and other must-pass legislation as quickly as possible. We’re tracking the latest state legislative responses to the coronavirus crisis.

Federal Coronavirus Relief: CARES Act FAQ

Congress recently passed the largest economic relief bill in American history (CARES Act). We’ve created a FAQ portal to better inform policymakers, journalists, and taxpayers across the country on the new law.

Understanding the Paycheck Protection Program in the CARES Act

Many small business owners are seeking guidance as they apply for loans backed by the Small Business Administration (SBA) to help maintain cash flow and retain workers even as more states announce new quarantine and shelter-in-place orders.

Idaho, Mississippi, and Virginia are the Holdouts on July 15th Tax Deadlines

Every state with an individual income tax has made some adjustment to its filing or payment deadlines, but three—Idaho, Mississippi, and Virginia—have not followed the federal government’s date of July 15th or later.

State and Local Funding Totals Under the CARES Act

State and local governments across the country split $150 billion in federal aid under a provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act, passed on March 30th.

A History and Analysis of Payroll Tax Holidays

As Congress and the White House consider ways to shore up the economy in the face of a public health crisis, President Trump has suggested suspending the entire payroll tax for the duration of the year. That would cost about $950 billion, according to our analysis.

Retroactive SALT Repeal Combines Weak Stimulus with Bad Tax Policy

House Speaker Nancy Pelosi (D-CA) has suggested that a retroactive repeal of the cap on State and Local Tax (SALT) deductions should be included in any future stimulus plans.

Gas Tax Revenue to Decline as Traffic Drops 38 Percent

Fewer people driving means fewer people buying gasoline, which may have positive effects on air pollution but could be detrimental to motor fuel excise tax revenue for federal and state governments.

New Jersey Waives Telework Nexus During COVID-19 Crisis

New Jersey is temporarily waiving corporate nexus arising from employees teleworking due to the COVID-19 pandemic—a response to the crisis that other states should follow.

Congress Approves Economic Relief Plan for Individuals and Businesses

The CARES Act, now signed into law, is intended to be a third round of federal government support in the wake of the coronavirus public health crisis and associated economic fallout, following the $8.3 billion in public health support passed two weeks ago and the Families First Coronavirus Response Act.

March 27th Afternoon State Tax Update

Massachusetts, Ohio, and West Virginia have newly extended their income tax filing and payment deadlines to match the July 15 federal deadline.

Sports Betting During a Pandemic

Spain’s COVID-19 Economic Response

Spain’s policy response needs to be broad and in keeping with long-term objectives. It is paramount that the short-term harm caused by this outbreak does not turn into a long-term economic downturn.

Evaluating the Trade-offs of Unemployment Compensation Changes in the CARES Act

Policymakers must weigh the trade-offs of subsidizing unemployment with mitigating community spread of coronavirus.

India Pushes Digital Taxes in a Difficult Time

Even during the coronavirus outbreak, efforts to change the way digital business models are taxed continue. India announced this week that its tax aimed at foreign digital companies, the “equalization levy,” will be expanded.

Denmark Unplugs the Economy

Denmark, a high-tax country with 5.5 million citizens, has implemented policies designed to avoid layoffs and bankruptcies and basically unplug the economy during the pandemic.

A German Export for Times of Crises: The Short-Time Work Scheme

One of the most talked about government economic responses to the COVID-19 crisis is Germany’s Kurzarbeit: the German short-work subsidy scheme.

Weighing the Value of Tax Credits During an Economic Crisis

One idea under consideration is adjusting existing tax credits, such as the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC), to provide financial relief during the crisis.

State Aid Provisions of the Federal Coronavirus Response Bill

To be eligible for federal funding, state expenditures must meet certain conditions. We break down the state aid coronavirus provisions in the latest federal bill.