Taxes

States and localities across the country are facing an unprecedented fiscal situation from the economic shock of the COVID-19 pandemic. Governors are confronting drastically falling revenues and rising costs. Prior to the onset of the COVID-19 pandemic, most states were generating solid revenue growth. And many built up robust rainy day funds. But the pandemic has
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No state is immune from the pandemic’s economic fallout. TPC’s Richard Auxier finds that all 50 states are experiencing an economic and fiscal crisis unseen since the Great Depression. April unemployment rates ranged from 7.9 percent in Connecticut to 28.2 percent in Nevada. Warns Richard: “Given what we know about unemployment rates and state tax
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The White House won’t update its budget and economic projections this summer. Since the 1970s, the president has released a “mid-session” budget update in July or August, reflecting changes in unemployment, inflation and economic growth. Not this year. The White House will suspend the review, asserting that sharing projections in tumultuous economic times would be
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Will the economy rebound without more stimulus? White House economic adviser Kevin Hassett seems to think so. He said yesterday that “it’s possible that we will see a strong-enough economy that we don’t need a phase four” stimulus package. He, like other White House officials, says the US should  assess the impact of existing relief
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Treasury Secretary: We’ll likely need another relief bill. Treasury Secretary Steven Mnuchin told The Hill yesterday that there is a “strong likelihood” that the nation will need another coronavirus relief bill. But, he said, “We’re going to step back for a few weeks and think very clearly how we need to spend more money and
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The IRS is recalling some workers. After largely shutting down its offices due to the COVID-19 pandemic, the agency is bringing back as many as 11,000 workers in three states on June 1. The new deadline for tax filing is July 15 and the agency wants to get caught up with a huge backlog of
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The shape of the recovery: A swoosh not a V. The Congressional Budget Office figures the economy won’t return to pre-recession levels at least through 2021. While the economy will hit bottom in the second quarter of this year, recovery will take years. By the fourth quarter of 2021, CBO figures the unemployment rate still
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Among other revenue provisions (Division B) of last week’s House-passed Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, the bill would make changes to certain refundable and non-refundable credits aimed at taxpayers with dependents under the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and Child and Dependent Care Tax Credit (CDCTC). This
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According to the Joint Committee on Taxation, Congress spent about $1.5 billion in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to create a one-year charitable deduction of $300 for the 90 percent of  taxpayers who claim the standard deduction. Unfortunately, little of this $1.5 billion will benefit the recipients of charitable services. At
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Unsung: House passes $3 trillion HEROES Act. The lower chamber passed the bill on Friday by remote vote. The Joint Committee on Taxation estimates the bill’s tax-related provisions would reduce federal revenue by $883 billion between fiscal years 2020 and 2030. Nearly half the cost would come from a second round of direct stimulus payments, which
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What is the economy worth? Federal Reserve Chairman Jerome Powell urged Congress  yesterday to approve another big COVID-19 relief package. “The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems,” Powell warned. It is extremely unusual for the Fed chairman to explicitly urge Congress
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House plans to vote today on HEROES Act. As 3 million more Americans filed for unemployment benefits this week, the House is set to vote on the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The final details still are evolving, but the bill will include substantial aid for state and local governments, individuals,
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Reporting suggests that Congress will continue to consider a variety of legislative solutions to support Americans enduring the ongoing public health crisis, provide short-term financing and tax relief for businesses and individuals, and eventually, revive economic growth after the crisis passes.   With policymakers contemplating more spending even as tax revenues fall relative to previous
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House Democrats release the HEROES Act. House Democrats introduced their $3 trillion Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, their opening bid for the next COVID-19relief bill. Many of the provisions seemed more intended to satisfy Democratic constituencies and build public support for a new round of assistance than to actually become law.
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