Tax

Key Findings State revenue stabilization funds, often called rainy day funds, are better funded now than they were at the start of the Great Recession and can be a valuable tool as states face a sharp pandemic-linked economic contraction. The median rainy day fund balance is 8 percent of state general fund expenditures, but several…

On March 19, Secretary of the Interior David Bernhardt announced that the U.S. Fish and Wildlife Service will distribute almost $1 billion to state and territorial fish and wildlife agencies to fund conservation and recreation projects. These funds have been raised through a rather well-designed excise tax levied on firearms as well as hunting and…

To get the coronavirus rebates in the Coronavirus Aid, Relief, and Economic Security (CARES) Act this year, most people will have to file an income…

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.…

Americans are still digesting the $2.2 trillion CARES Act (H.R. 748), which passed last week as the largest financial support package in U.S. history. The law runs more than 800 pages and contains hundreds of provisions designed to dispense relief to individuals and businesses in the wake of the ongoing public health crisis. While many…

Key Findings As states grapple with declining revenues and delay tax collections, policymakers must begin to think about how to close out their FY 2020 budgets consistent with balanced budget requirements. Every state but Vermont has a balanced budget requirement, but details vary across the country. In some states, a budget must be balanced when…

Last night, the, the Treasury Department announced it was reversing course and would make direct coronavirus rebate payments to Social Security beneficiaries even if they…

Countries around the world have been introducing various fiscal measures to alleviate the economic distress caused by COVID-19. One measure—among many—has been to provide relief through temporary changes of Value-Added Taxes (VAT), such as delaying payments, speeding up refunds, or reducing rates. However, the extent to which businesses and consumers will benefit from such relief measures will depend…

As we all try to limit our exposure to the coronavirus as much as possible, delayed tax filing and payment deadlines are one less thing to worry about for now—at least in most states. It was state governments that took the lead, extending deadlines even before the federal government acted, but once the IRS extended…