Efficient and Targeted Tax Policy During the Coronavirus Pandemic
Alex Brill | House Committee on Ways and Means Subcommittee on Select Revenue Measures
My testimony begins with an overview of the economic impact of the pandemic and our current economic situation. I then make five recommendations for tax policies that would help unemployed workers return to work and facilitate the continuity of health benefits for laid-off workers:
1) Expand the employee retention tax credit
2) Expand the child and dependent care tax credit
3) Offer premium assistance to cover the cost of COBRA
4) Enact the Safe and Healthy Workplace Tax Credit
5) Temporarily expand the Work Opportunity Tax Credit
I also address several provisions that should not be enacted – namely, a second round of economic rebate payments, elimination of the cap on state and local tax deductions, and an expanded child tax credit – and highlight budgetary concerns with costly and poorly targeted tax relief. Finally, I emphasize the urgency of legislative action.