Delivering aid to businesses through the payroll tax system the case of the employee retention credit Lucas Goodman
By: Goodman, Lucas W
.
Material type: 
ArticleSubject(s): PANDEMIAS | CORONAVIRUS | CRISIS ECONOMICAS | EMPRESAS | GASTOS FISCALES | TRABAJADORES | SALARIOS | ESTADOS UNIDOS
In:
National Tax Journal v. 76, n. 2, June 2023, p. 439-463Summary: During the COVID-19 pandemic, Congress enacted the Employee Retention Credit (ERC), a payroll tax credit paid to firms experiencing pandemic-related hardship. This paper uses administrative tax data to study the claiming of this credit. While firms have claimed nearly $100 billion of the credit, we find take-up to be highly imperfect even in contexts where nearly universal eligibility is expected. We find that the credit was mostly paid as a lump sum after the end of the quarter. Finally, we find that the progressivity of the ERC depends on whether the incidence of the ERC fell on business owners or employees.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2023/2-5 (Browse shelf) | Available | OP 233/2023/2-5 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 233/2023/2-2 The effect of tax price on donations | OP 233/2023/2-3 Income guarantee policy design | OP 233/2023/2-4 Unemployment insurance recipiency during the Covid-19 pandemic | OP 233/2023/2-5 Delivering aid to businesses through the payroll tax system | OP 233/2023/2-6 Forum | OP 233/2023/3 National Tax Journal | OP 233/2023/3-1 Job creation tax credits, fiscal foresight and job growth |
Resumen.
Bibliografía.
During the COVID-19 pandemic, Congress enacted the Employee Retention Credit (ERC), a payroll tax credit paid to firms experiencing pandemic-related hardship. This paper uses administrative tax data to study the claiming of this credit. While firms have claimed nearly $100 billion of the credit, we find take-up to be highly imperfect even in contexts where nearly universal eligibility is expected. We find that the credit was mostly paid as a lump sum after the end of the quarter. Finally, we find that the progressivity of the ERC depends on whether the incidence of the ERC fell on business owners or employees.
There are no comments for this item.