The economic crisis caused by the coronavirus pandemic poses a triple challenge for tax policy in the United States. Lawmakers are tasked with crafting a policy response that will accelerate the economic recovery, reduce the mounting deficit, and protect the most vulnerable.
To assist lawmakers in navigating the challenge, and to help the American public understand the tax changes being proposed, the Tax Foundation’s Center for Federal Tax Policy modeled how 70 potential changes to the tax code would affect the U.S. economy, distribution of the tax burden, and federal revenue.
In tax policy there is an ever-present trade-off among how much revenue a tax will raise, who bears the burden of a tax, and what impact a tax will have on economic growth. Armed with the information in our new book, Options for Reforming America’s Tax Code 2.0, policymakers can debate the relative merits and trade-offs of each option to improve the tax code in a post-pandemic world.
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A Review of Net Operating Loss Tax Provisions in the CARES Act and Next Steps for Phase 4 Relief
In addition to providing economic relief to individuals and loans to businesses struggling during the coronavirus crisis, the CARES Act changed several tax provisions to increase liquidity to ensure firms survive a large decline in cash flow.
7 min read![Consumption taxes are the largest share of average OECD revenue. Consumption Taxes coronavirus, Sales Taxes Coronavirus Sales Tax Coronavirus](https://taxfoundation.org/wp-content/uploads/2020/04/TF_OECDconsumptionRevenue-300x216.png)
New OECD Study: Consumption Tax Revenues during Economic Downturns
Compared to other tax revenue sources, consumption tax revenue as a share of GDP tends to be relatively stable over time, even during economic downturns.
2 min read![Tax Cuts and Jobs Act offshoring OECD BEPS project, OECD consultation document, OECD multinationals, Consumption tax policies in OECD countries, Consumption taxes in OECD countries](https://taxfoundation.org/wp-content/uploads/2019/10/linkedin-In-Stream_Wide___International-flags-sweden-e1570637639329-300x158.jpeg)
Is Now the Time for a $100 billion Tax Increase?
Seemingly unconcerned about how the digital project could impact the economy at this crisis moment, officials at the OECD recently released a statement boasting that they are continuing to work “full steam” on their global digital tax project.
5 min read![Maryland digital advertising tax litigation internet tax, Maryland digital ad tax, Maryland tax increases and Maryland tax proposals 2021](https://taxfoundation.org/wp-content/uploads/2020/01/Maryland-e1579127508658-300x200.jpeg)
April 10th Afternoon 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.
5 min read![Nashville Tennessee Privilege Tax](https://taxfoundation.org/wp-content/uploads/2020/02/Nashville-Tennessee-300x181.jpg)
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Trade-offs of Delaying Tax Filing and Instituting a Payroll Tax Holiday on Businesses and Individuals
Some policymakers are proposing a payroll tax holiday for businesses and individuals for 2020 and a complete delay in filing deadlines for tax year 2019 and 2020 to April 2021. What are the pros and cons of doing so?
4 min read![](https://taxfoundation.org/wp-content/uploads/2019/04/small-town-usa-main-street-business-small-business-300x154.jpg)
Evaluating the Trade-offs of Small Business Relief Provisions of the CARES Act
The small business provisions in the CARES Act support small businesses and nonprofits seeking economic relief during this downturn. However, creating multiple programs with overlapping purposes and differing qualification requirements makes relief more complicated, vague, and not neutral.
6 min read![](https://taxfoundation.org/wp-content/uploads/2020/04/linkedin-In-Stream_Wide___worker-business-300x158.jpg)
These States Could Tax Your Recovery Rebates
Due to a quirk of some state tax codes, the recovery rebates in the CARES Act could increase your income tax liability in six states: Alabama, Iowa, Louisiana, Missouri, Montana, and Oregon.
4 min read![](https://taxfoundation.org/wp-content/uploads/2020/04/relief-01-300x169.png)
Watch: Tax Foundation Experts Discuss Short-term Coronavirus Relief Packages
What could the next phase of relief look like and what role does tax policy play in ensuring the U.S. and countries around the world make a strong economic recovery?
1 min read