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COVID-19 (coronavirus) Pandemic Tax Policies

As the U.S. federal, state, and local governments, as well as countries around the world, continue to implement measures to support their economies amid the coronavirus (COVID-19) pandemic, our experts are providing trusted analysis of the latest coronavirus tax developments to better inform policymakers, journalists, and taxpayers.

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All Related Articles

Why Neutral Cost Recovery Is Good for Workers

Studies have shown that accelerated depreciation helps increase wage growth. A recent report found that states that implemented accelerated depreciation in their tax codes led to a 2.5 percent increase in compensation per employee in manufacturing, relative to states that did not.

3 min read

Full Expensing is Good for the Short Run and the Long Run

In the first year of enactment alone, we estimate the combination of full expensing and neutral cost recovery would increase full-time equivalent employment by more than 44,000 jobs. The cumulative impact by year five of the policy would be nearly 200,000 new jobs.

4 min read
Nebraska tax reform options Nebraska tax reform framework Nebraska income tax reform

CARES Act Conformity Would Promote Economic Recovery in Nebraska

Nebraska lawmakers may ultimately opt for a package that includes both property tax relief and the renewal of business incentives, but they should avoid doing so at the expense of decoupling from the CARES Act’s liquidity-enhancing provisions.

6 min read
broadband internet, digital capital investment, tax policy, and infrastructure, telecom, 5g internet

What the Internet Can Teach Us About Capital Investment, Infrastructure, and Tax Policy

The lockdowns imposed in response to the COVID-19 pandemic induced an increase in demand for broadband internet, as work from home and other social distancing measures pushed people to spend more time online. As broadband becomes a more important piece of America’s infrastructure, it makes sense to look at tax policy that will help drive more investment and better service.

2 min read
Republican budget tax proposals RSC budget Republican Study Committee budget House Democrats tax increases in historical context Build Back Better Act Federal tax expenditures CARES Act Weighing the Benefits of Permitting Business Credit Cashouts in Phase 4 Economic Relief

Weighing the Benefits of Permitting Business Credit Cashouts in Phase 4 Economic Relief

As lawmakers explore options for “Phase 4” coronavirus relief legislation, one idea that has received renewed attention is allowing businesses to cash out business tax credits. This proposal would be strengthened by also permitting acceleration of firms’ accrued net operating loss (NOL) deductions and designing the proposal so that firms can quickly convert these tax assets into cash.

4 min read
DC tax hike, DC income tax DC flavored tobacco ban

D.C. Council to Consider Tax Hike Despite Balanced Budget

Despite a balanced budget and and revenue shortfalls arising from the coronavirus crisis, the D.C. Council will consider proposals to raise income taxes to fund newly proposed spending projects.

5 min read
cost recovery expensing capital allowances factory

Inefficiencies Created by the Tax System’s Dependence on Economic Depreciation

One idea that would help the nation’s economic recovery during the coronavirus crisis would be moving to full expensing of capital investment. The depreciation debate might seem confusing, so the question at hand is: how, when, and by what amount can businesses recognize (or recover) the cost of a capital investment, like a piece of equipment or a new warehouse, on their income tax return?

6 min read

New Jersey Considers Bonds Paid for by Statewide Property Tax

As New Jersey lawmakers grapple with reduced revenues due to the coronavirus pandemic, they have turned to an unusual solution: the issuance of bonds that would be repaid, if necessary, through temporarily higher sales and property taxes.

2 min read
Sports betting tax treatment of sports betting operators and gross gaming revenue

Sports Betting Will Not Solve State Budget Crises

The pandemic has left states in dire straits financially and lawmakers are getting creative in their pursuit of new revenue sources. However, it’s unlikely that revenue from sports betting will have any meaningful impact on budget shortfalls

3 min read

Watch: Economic Recovery After Coronavirus

What are the best tax policies to encourage a smooth transition and strong economic recovery? How should goals of economic recovery and growth be balanced with revenue needs?

1 min read

Lessons from Alberto Alesina for U.S. Lawmakers

Alesina’s work suggests that raising taxes to reduce the federal deficit and national debt would be an economic mistake. The less economically damaging path is to cut spending, what some have called austerity policies.

3 min read