Tax

Right now, the public health emergency and financial crisis created by shelter-in-place, social distancing, and quarantine orders must be met with fast legislative response to provide temporary economic relief. Senate Republicans proposed the CARES Act last week, while House Democrats released their own proposal yesterday. The differences between the proposals are huge, raising the issue…

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…

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. State Legislative Session Changes Many states have adjusted…

New York Governor Andrew Cuomo (D) has become an avid supporter of legalized recreational marijuana and has vowed to legalize it this year. This is the second year in a row Gov. Cuomo has included legalization in his budget. In 2019, the measure was eventually taken out of the budget, despite support among voters, as…

Lawmakers are currently debating the size and structure of “recovery rebates” for individual taxpayers as part of a package addressing the current health and economic crisis. The exact mechanism and timing of these potential rebates, designed to provide a one-time income boost for individuals to weather the economic crisis, is at this point unknown. How…

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,…

Unemployment claims are going to tax state unemployment compensation trust funds beyond their limits. We need to start thinking about what to do about it. The joint federal-state system of unemployment insurance (UI) is a key component of the governmental response to the COVID-19 crisis, meeting the immediate needs of workers who are laid off…

Thursday evening, Senate Republicans released the Coronavirus Aid, Relief and Economic Security (CARES) Act. This bill is intended to be a third round of federal government support in the wake of the coronavirus public health crisis and associated economic fallout, following the $8.3 billion in public health support passed two weeks ago and the Families…

This morning, the federal government moved tax day from April 15 to July 15 in response to the coronavirus pandemic, granting more time for both filing and payment. But for many taxpayers, it might not matter much if states don’t follow suit. And right now, only a few have done so. Unfortunately, most states are…