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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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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.

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State Rainy Day Funds and the COVID-19 Crisis

State revenue stabilization funds, often called rainy day funds, are better funded now than they were at the start of the Great Recession and can be a valuable tool as states face a sharp pandemic-linked economic contraction.

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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.

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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.

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CARES Act FAQ: Federal Coronavirus Relief Law

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.

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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.

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A Visual Guide to Unemployment Benefit Claims

Another 1.4 million Americans filed initial regular unemployment benefit claims, the eleventh week of a decline in the rate of new claims, but still among the highest levels in U.S. history. The total number of new and continued claims now stands at 19.3 million, a marked decline from the peak of 24.9 million a month ago.

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Coronavirus relief measures, Coronavirus tax relief measures, Coronavirus VAT payments, refunds, and rates in Europe

VAT Bases in Europe

The extent to which businesses and consumers will benefit from coronavirus relief measures like temporary VAT changes will depend on the VAT base.

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How healthy is your state's rainy day fund? State rainy day funds and state rainy day balances as a percentage of state general fund expenditures

How Healthy is Your State’s Rainy Day Fund?

Rainy day funds have increasingly emerged as a standard component of states’ budgeting toolkits. Economic cycles can have significant impacts on state revenue, but states can prepare for the inevitable downturns during good times by putting away money in a revenue stabilization fund.

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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.

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payroll taxes, payroll tax holidays. trump payroll tax holiday, Republican study committee reclaiming the american dream welfare policy, labor policy, education policy

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.

6 min read
Fewer people driving means fewer people buying gasoline, which could be detrimental to motor fuel excise tax revenue for federal and state governments. The coronavirus pandemic is affecting most aspects of the economy, and motor fuel consumption is no exception. As social distancing recommendations, shelter-in-place-orders, and quarantines have upended American life in an effort to slow the spread of the virus, road traffic has declined dramatically around the country. Traffic drops means less motor fuel excise revenue

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.

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CARES Act, Senate Coronavirus bill, Senate Coronavirus relief, Senate Coronavirus Aid

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.

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Massachusetts gross receipts tax

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.

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Spain coalition tax plan agreed upon by Pedro Sanchez, and Pablo Iglesias entails higher taxes on businesses and high-income earners.

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.

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