Tax

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This blog post is part of that series. Past Updates: March 24, March 25, March 26,…

As states look for a path out of these fiscally troubling times, Louisiana has several options for aspects of its tax code to promote economic recovery and growth. The Pelican State’s federal deductibility, Corporation Franchise Tax, and sales tax structure present opportunities for beneficial tax reform in the wake of the coronavirus crisis. Louisiana is…

Congress has added nearly another $500 billion to the more than $2 trillion it already spent to fund coronavirus relief. And it likely will approve…

Like the federal government, states play a critical role in responding to the coronavirus outbreak. Legislators across the country are working to respond as quickly and effectively as possible. While direct public health interventions and assistance to those in economic distress are the most urgent needs, tax policy plays an important role in this process,…

On Wednesday, the U.S. Department of the Treasury issued new guidance on allowable expenses using the $150 billion in state aid provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a point on which there has been considerable confusion. The guidance provides a reasonably flexible interpretation of permissible uses of payments from the…

Many countries’ individual income tax systems tax various sources of individual income—including investment income such as dividends and capital gains. Today’s map shows how dividend income is taxed across European OECD countries. A dividend is a payment made to a corporation’s shareholders from corporate after-tax profits. In most countries, such dividend payments are subject to…

The U.S. Senate on Tuesday passed the Paycheck Protection Program Increase Act, which aims to top off the Paycheck Protection Program (PPP) established in the CARES Act last month. When Congress considers its next options, in so-called Phase 4 economic relief, policymakers should revisit some of the tax questions about the PPP in addition to…

Federal policymakers are set to return to Washington on May 4 to debate the next legislative proposals to address the coronavirus crisis and global financial fallout. As they weigh existing and new tax policy options, they should remember the adage to “keep it simple.” Recent reports suggest that policymakers will discuss additional funding for small…

Defying the skeptics (including me ), the Internal Revenue Service last week began depositing direct payments of $1,200 for adults (plus $500 per child under…