Taxes

Last week, Congress and President Trump enacted the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest aid package in American history. The CARES Act and the two preceding congressional measures provide three phases of essential relief to an economy facing the potential of devastation by the coronavirus. But more assistance will
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Congress is about to pass a massive economic stimulus package that will, among other things, send cash to most American households. The so-called rebates amount to $1,200 per adult and $500 per child for eligible households. They phase out at higher incomes and generally are not available to non-citizens and others without Social Security numbers.
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Crawling toward the finish line. After another long day of last minute arguments, the Senate finally passed its version of its massive COVID-19 response bill. The measure includes direct payments to individuals, a major expansion of unemployment benefits, assistance for small businesses, medical providers, and large corporations, and aid to states. The House still needs
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Countries around the world have been introducing various fiscal measures to counteract the economic distress caused by COVID-19. One measure—among many others—has been to make changes to Value-Added Taxes (VAT), such as delaying payments, speeding up refunds, or reducing rates. These measures can provide great relief for many businesses and in some cases for consumers
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Still no agreement on Stimulus 3. Senate Republicans and Democrats argued over who was responsible for their inability to pass a coronavirus stimulus package. House Speaker Nancy Pelosi released her own 1,400-plus page bill called the “Take Responsibility for Workers and Families Act.” Her measure includes a bigger individual payment, as well as expansions to
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Like the federal government, states play a critical role in responding to the novel coronavirus outbreak. Legislators across the country are working to respond as quickly and effectively as possible, while balancing public health risks of legislative sessions for both legislators and the public. Most states typically begin their legislative sessions in January and adjourn
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The direct payments (called recovery rebates) included in the Senate’s latest coronavirus stimulus plan would target two-thirds of their benefits to low- and middle-income households, according to a new analysis by the tax Policy Center.  All households with incomes of about $91,000 or less would be eligible for the payments under the bill. The provision
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On to round three of coronavirus relief. Last night, President Trump signed into law the safety net bill passed by the Senate yesterday and House last week.  And lawmakers continued work on a third, even larger stimulus package. The White House is proposing a $1 trillion plan, including $50 billion in loans to the airline industry, $300
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The United States has very little experience coping with pandemics, let alone their fiscal implications. As the crisis progresses, state leaders may be inclined to follow the federal government and turn to traditional fiscal mechanisms to address this challenge. However, a pandemic doesn’t have the same implications as a natural disaster or a financial crisis. As
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COVID-19 poses a severe threat not only to public health but also to the overall US economy. The nation’s policy response should focus on four basic strategies. First, we should embrace those economic losses that protect health. The steps needed to combat the coronavirus will inevitably reduce economic activity. We want risky activities to stop.
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