Skip to content

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.

If you are new to the Tax Foundation’s work, you can learn more about who we are and what we do here. You can also stay informed on the latest coronavirus tax updates with our weekly newsletter. As an independent 501(c)(3) nonprofit, we rely on the generosity of people like you to make our work here possible.

All Related Articles

House tobacco proposal Bidens tax pledge House Democrats' tobacco tax increased taxes on vaping, increased taxes on smoking, tax on vaping, tax on smoking, merkley, romney, e-cigarette taxes

Phase 4 Is not the Time to Experiment with Temporary Credits

As lawmakers consider returning to the tax code as a tool to revive a struggling economy with high unemployment and an unpredictable virus, they should avoid temporary changes that can be distortive in the short term and inefficient in the long term.

4 min read
Germany tax, German EU presidency Germany EU presidency

Tax Policy Proposals for the German EU Presidency

While much of Germany’s EU presidency agenda is focused on policies to ensure economic stability and recovery from the COVID-19 pandemic, there’s a pair of tax proposals that the country is planning to develop and move forward at the EU level: a financial transaction tax and a minimum effective tax.

5 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

Digital Tax Deadlock: Where Do We Go from Here?

We recently hosted an exclusive webinar discussion to get up to speed on recent digital tax developments and gain insight from leading international tax experts on the OECD’s BEPS project.

9 min read

Iowa Decouples from 163(j) and GILTI, Clarifies Non-Taxation of PPP Loans

Iowa’s HF 2614, which passed both chambers of the legislature and now waits for the governor’s signature, makes several changes to the state’s tax code, which, although they will affect revenue, will encourage economic growth and make the state’s tax code more competitive.

4 min read
estimated economic impact of improved cost recovery by state

Estimated Impact of Improved Cost Recovery Treatment by State

We estimate that moving to permanent full expensing and neutral cost recovery for structures would add more than 1 million full-time equivalent jobs to the long-run economy and boost the long-run capital stock by $4.8 trillion.

4 min read
federal government response to coronavirus, simplify next round of rebates, GAO report

GAO Report Reveals Need to Simplify Next Round of Rebates

A new Government Accountability Office (GAO) report revealed that almost a half-million taxpayers missed their total rebate payment due to complications over disbursing funds to non-filers with eligible dependents. Administrability is just as important as rebate design and simplicity is just as important as speed.

3 min read

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