Assaf Harpaz (Duke), Tax Coverage and COVID-19: An Argument for Focused Disaster Aid, 31 Cornell J.L. & Pub. Pol’y 235 (2021):

The COVID-19 pandemic triggered a pointy international financial decline. By the tip of 2021, the U.S. authorities responded to the downturn with document fiscal laws totaling over $5 trillion, which incorporates appreciable tax aid. Most notably, the U.S. authorities distributed over $800 billion in three rounds of superior refundable tax credit (often known as restoration rebates, or stimulus checks) to most households. Tax aid has been unprecedented in scale however has usually been the product of political circumstances moderately than principled coverage design. Tax aid thus stays largely undertheorized and politically motivated.

This Article examines the U.S. tax coverage response to the COVID-19 disaster, specializing in restoration rebates for people. It evaluates concerns for reforming tax aid and proposes a number of adjustments for future crises. First, the Article recommends concentrating on credit to low-income households. This must be completed by reducing part out thresholds and growing credit score quantities. Second, the Article recommends concentrating on credit to households which misplaced earnings. This must be completed by implementing a recapture (compensation) requirement on the finish of the tax 12 months from households whose earnings elevated past the part out threshold, topic to a protected harbor. These proposals enhance vertical fairness and effectiveness, permit elevated support to those that suffered essentially the most, and improve financial stimulus. Moreover, the Article explores arguments for common advantages and recurring funds. It thereby examines the broadly publicized debate on fiscal response to COVID-19 and suggests significant enhancements to tax coverage response for future crises.

https://taxprof.typepad.com/taxprof_blog/2023/06/tax-policy-and-covid-19-an-argument-for-targeted-crisis-relief.html