Federal Tax

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. While the mitigation policies will be felt across most
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Right now, the public health emergency and financial crisis created by shelter-in-place, social distancing, and quarantine orders must be met with fast legislative response to provide temporary economic relief. Senate Republicans proposed the CARES Act last week, while House Democrats released their own proposal yesterday. The differences between the proposals are huge, raising the issue
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Countries around the world are implementing emergency tax measures to support their debilitated economies under the coronavirus (COVID-19) threat. Providing tax relief to the people and companies that are most affected, until the emergency abates, is welcome. Countries should consider tax relief measures because the health issue is creating a substantial economic shock. Taxes that
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Thursday evening, Senate Republicans released the Coronavirus Aid, Relief and Economic Security (CARES) Act. This bill 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
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The coronavirus crisis is creating an unprecedented economic shock, and lawmakers are debating how to use fiscal policy tools to stimulate the economy and accommodate businesses and households during the public health emergency. One word frequently mentioned in these conversations is liquidity, which describes whether firms and individuals have enough cash (or assets that can
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The coronavirus-related lockdowns and quarantines are causing a major but temporary pause in economic activity. Many jobs and paychecks have been suspended. Congress and the Trump Administration are exploring tax relief and changes to unemployment benefits for individuals. Many businesses will experience a sharp reduction in cash flow, impairing their ability to make payroll, rent,
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 Key Findings Income earned from appreciating assets—rather than wages—constitutes a large portion of income for taxpayers in the highest income brackets. Democratic presidential candidates have suggested that long-term capital gains and dividends income earned by the wealthiest Americans should be taxed at ordinary income tax rates rather than the preferential rates. Raising capital gains rates
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Governmental responses to the coronavirus outbreak will require creativity and flexibility—and one aspect of that may involve temporarily rethinking how we structure not only unemployment insurance (UI) benefits but also the taxes that pay for them. As this public health crisis unfolds, it will be necessary to ensure that (1) those who lose their jobs
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Last Saturday, the U.S. House of Representatives passed a bill (reportedly pending some potential technical changes) to help aid those affected by the current coronavirus crisis. The bill, the Families First Coronavirus Response Act, would expand federal medical leave, create an emergency paid sick leave requirement, and provide tax credits against employer-side payroll taxes to
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Countries around the world are implementing emergency tax measures to support their debilitated economies under the coronavirus (COVID-19) threat. The following countries implemented or plan to implement tax relief for businesses and households affected by this health crisis: China has reduced its value-added tax (VAT) from 3 percent to 1 percent for the cash accounting
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Key Findings The major 2020 Democratic presidential candidates have each proposed changes to the individual income tax, one of the largest sources of federal revenue. These proposals range from raising the top marginal income tax rate to 39.6 percent, imposing surtaxes on labor and investment income, and repealing provisions of the Tax Cuts and Jobs
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