The nationwide effort to contain the spread of COVID-19 has taken a considerable economic toll. In recent weeks, travel has all but ground to a halt, and nonessential businesses have shuttered, causing mass layoffs and a historic unemployment crisis. The crunch has arrived at a time when many Americans are already facing financial strain – tax season.
Using data from the U.S. Census Bureau's 2017 Census of Governments , 24/7 Wall St. reviewed the total state and local tax collections as a share of income on a per capita basis to identify the states with the lowest and highest tax burden. Federal taxes were not included in the calculation.
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NJ taxes could go up to pay back borrowing to cover budget holes
Sales and property taxes could go up if New Jersey follows through on a plan to borrow up to $9 billion from the U.S. Federal Reserve to patch the holes in revenue ravaged by the coronavirus pandemic.
Gov. Phil Murphy first discussed the possibility last week but it is unclear if legislative leaders will sign off on the proposal.
New Jersey doesn't know the true impact the pandemic has had on state finances, but it inevitably will slash major revenue streams and put Murphy's $40.9 billion proposed budget in jeopardy. Sales tax collections will slow after Murphy ordered nonessential retail stores closed; hundreds of thousands of taxpayers are out of work and filing for unemployment , impacting the income tax; lottery sales were hit and gas tax collections decline as New Jerseyans stay off the roads.
Suspend the Payroll Tax - WSJ
The best economic idea we've heard in response to the coronavirus crisis is a payroll-tax suspension. President Trump restated his support for it at a recent press briefing, and for good reason: It would reward work and production rather than the growth of government. Republicans should rally around the idea as the centerpiece of their next economic revival plan.
COVID-19 hitting hotels, room taxes | Business | gazettextra.com
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Tax-refund delays mount as IRS struggles with snail mail amid shutdown - POLITICO
The IRS is piling unopened business tax refund requests into storage trailers and advising companies to file by fax instead. It's stopped answering phone calls on taxpayer assistance lines. And it's not processing millions of paper tax returns filed by individual Americans.
The coronavirus pandemic has nearly crippled the tax collection agency, which relies on antiquated technology and still does a lot of business on paper, just as it is most needed to help pump money into the ailing economy.
Coronavirus stimulus check: How Economic Impact Payments affect taxes
"One question is, 'Will I need to pay taxes on it'?" says Eric Bronnenkant, head of tax at financial services firm Betterment.
Taxpayers who haven't yet filed their 2019 returns are also wondering if they should file now, or wait until closer to the delayed July 15 tax filing deadline.
The good news, Bronnenkant and other tax experts say, is that people won't owe taxes on their stimulus payments. That's because the payments aren't considered income — instead, they are prepaid tax credits on your 2020 tax returns, notes Christina Taylor, head of operations at Credit Karma Tax.
How the New Coronavirus Could Impact Property Taxes, Tax Rates – NBC 5 Dallas-Fort Worth
State taxes: Ranking the states from lowest to highest tax burdens
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Risking #detention and eventual #deportation, these seven #migrants spoke publicly of being perilously excluded fro… https://t.co/T5zdncc8yw nkeung (from Toronto) Sat Apr 18 18:35:05 +0000 2020
REMINDER: Congress left out millions from COVID-19 economic relief, simply because of their immigration status. It… https://t.co/UItd17vqub ACLU (from All 50 states) Fri Apr 17 18:52:36 +0000 2020
There could be up to 10 million Americans ineligible for stimulus payments because they don't earn enough to file t… https://t.co/bjovJe4WhD RoKhanna (from Silicon Valley, CA) Tue Apr 14 23:33:00 +0000 2020
Some myths are circulating as @IRSnews begins to deliver direct financial support to most Americans. I want you to… https://t.co/bKUggEOIVy ChrisCoons (from Wilmington, DE) Mon Apr 13 21:07:06 +0000 2020
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