Tax

Giving people cash is a great way to soften COVID-19’s economic blow. But it’s sparked a classic debate. Should the federal government give money to…

 Key Findings Income earned from appreciating assets—rather than wages—constitutes a large portion of income for taxpayers in the highest income brackets. Democratic presidential candidates have suggested that long-term capital gains and dividends income earned by the wealthiest Americans should be taxed at ordinary income tax rates rather than the preferential rates. Raising capital gains rates…

Governmental responses to the coronavirus outbreak will require creativity and flexibility—and one aspect of that may involve temporarily rethinking how we structure not only unemployment insurance (UI) benefits but also the taxes that pay for them. As this public health crisis unfolds, it will be necessary to ensure that (1) those who lose their jobs…

The Senate will now be taking up the final version of the House Families First Coronavirus Response Act passed by unanimous consent, which includes changes to the paid family medical leave provisions from the previous version of the bill. The House bill would still provide two weeks of paid sick leave to workers who must…

As policymakers consider ways to provide relief during the public health crisis and economic downturn, tax policy can provide a set of tools to increase stability for both individuals and businesses. Instead of simply reaching for fiscal stimulus with the goal of increasing economic activity, tax policy changes can give vulnerable individuals and businesses additional…

The coronavirus crisis is creating an unprecedented economic shock, and lawmakers are debating how to use fiscal policy tools to stimulate the economy and accommodate businesses and households during the public health emergency. One word frequently mentioned in these conversations is liquidity, which describes whether firms and individuals have enough cash (or assets that can…

In February, the OECD presented its preliminary impact assessment on the Pillar 1 and Pillar 2 proposals. The impact assessment includes estimated revenue and investment effects presented at a country group level (low-, middle- and high-income countries and investment hubs). The OECD estimates global corporate income tax revenues to increase by 4 percent if both pillars get implemented,…

With GDP forecasts turning sharply negative for the quarter, states are bracing for the worst—or will be when legislative sessions resume after the suspensions many have implemented in light of the COVID-19 pandemic. On Sunday, Goldman Sachs cut its second quarter U.S. GDP estimate from 0 percent to a stunning -5 percent, which would represent…

COVID-19 poses a severe threat not only to public health but also to the overall U.S. economy. The Nation’s policy response should focus on three…