[20200317]IN11247_2019冠状病毒疾病和对个人的直接支付：关于使用预付可退款信贷作为经济刺激的思考.pdf

CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i COVID-19 and Direct Payments to Individuals: Considerations on Using Advanced Refundable Credits as Economic Stimulus Margot L. Crandall-Hollick Acting Section Research Manager March 17, 2020 In response to concerns about an economic slowdown stemming from the COVID-19 pandemic, policymakers have been considering a broad array of policy options. Some are targeted directly toward the individuals and industries that may be most affected. Others would more broadly seek to stimulate the economy. Among this latter category of policies, some have suggested a payroll tax cut, while others have proposed direct cash payments“recovery rebates”to virtually all households. One mechanism to provide cash payments relatively quickly is to create a new refundable tax credit and then advance it to households before they would otherwise claim it on their income tax returns. A similar policy was enacted most recently in 2008. This Insight addresses some common questions about advanced refundable tax credits. What is a refundable tax credit? Tax credits reduce income taxes owed dollar for dollar; each dollar in tax credit is