Tax

The CARES Act provides several relief options for employers trying to maintain payroll and liquidity during the coronavirus pandemic. For example, the CARES Act provides forgivable loans for up to eight weeks of eligible payroll expenses provided employers retain employees at comparable salary levels prior to the crisis. This is the Paycheck Protection Program (PPP).…

Six states, which collectively account for over one-third of the U.S. population, are currently in a position to pay out fewer than 10 weeks of the unemployment compensation claims that have already come in since the start of the COVID-19 pandemic—including those they’ve already begun to pay out. California is in the worst shape, with…

The Coranavirus Aid, Relief, and Economic Security (CARES) Act expansion of Unemployment Insurance (UI) benefits is likely to cost far more than Congress’s original estimate…

Americans are receiving rebate checks as part of the federal government’s economic response to the COVID-19 crisis—but in a few states, at least some of those checks could be taxed. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, up to $1,200 rebates are provided for individuals ($2,400 for joint filers), with an additional…

The question, “Does my state tax Social Security benefits?” may be simple enough, but the answer includes a lot of nuance. Many states have unique and specific provisions regarding the taxation of Social Security benefits, which can be broken into a few broad categories. That’s what we do with this week’s map. Twenty-six states and…

The coronavirus crisis demands urgent solutions but also careful consideration. How can governments best deliver immediate relief while ensuring that tax policies remain simple, transparent, neutral, and stable?  What tax changes have different levels of government already enacted to address the crises and what can they learn from each other?  What could the next phase of relief look like and…

The Coronavirus Aid, Relief, and Economic Security (CARES) Act creates two new tax benefits for donors to non-profits. One will mostly benefit low- and middle-income…

 Key Findings A capital allowance is the amount of capital investment costs a business can deduct from its revenue through the tax code via depreciation. Higher capital allowances can boost investment which, in turn, spurs economic growth. The average of Organisation for Economic Co-operation and Development (OECD) countries’ capital allowances has decreased since 2000, including…

The incredible disruptions that the current pandemic has caused has led to a variety of tax questions. While much of the fiscal conversation has focused on tax relief and tax deferrals, another significant angle needs to be explored. That is the question of nexus. If a business has employees all over the world and some…