May 14, 2020
The Good, the Bad, and the Ugly: Tax Policy in the HEROES Act
In their proposed fourth coronavirus-response package, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, House Democrats have included over 50 separate tax provisions. While many of these are longstanding progressive policy priorities, this bill also has a number that would make good-faith policy improvements, writes AAF’s Director of Fiscal Policy Gordon Gray. He outlines the tax provisions in this bill and assesses which provisions are worthwhile and which are misguided.
His central points:
- The HEROES Act contains a reported $3 trillion in new federal fiscal obligations – including substantial tax changes;
- The Act contains 54 separate tax provisions, including several new or expanded transfer payments, expanded hiring incentives, and retirement policies; and
- The Act contains worthwhile improvements to Coronavirus Aid, Relief, and Economic Security (CARES) Act policies that should be considered by Congress but is also bloated with inappropriate or misguided tax policies.