| Title: |
STIMULUS CHECKS: TRUE-UP AND SAFE-HARBOR COSTS. |
| Authors: |
Splinter, David1 david.splinter@jct.gov |
| Source: |
National Tax Journal. Jun2023, Vol. 76 Issue 2, p349-366. 18p. |
| Subject Terms: |
*COVID-19 pandemic; *SAFE harbor; *TAX returns; *TAX credits; *COST |
| Abstract: |
Stimulus checks were sent in response to recent US recessions. These checks grew from about $40 billion in the 2001 recession to $800 billion in the COVID era. Prior studies, however, ignored additional stimulus received upon filing tax returns (true-ups) and safe harbors that prevent possible stimulus repayment. Using population-level tax data, I estimate true-up and safe-harbor costs and decompose them by reasons, such as changes in income or the number of children. True-ups and safe harbors are costly. For the three rounds of COVID-era stimulus, true-ups and safe harbors cost more than $130 billion. [ABSTRACT FROM AUTHOR] |
| : |
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| Database: |
Business Source Premier |