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Covid-19

The Fiscal Reckoning to Come: Paying for Virus Relief in an Era of Tax Cuts

The Fiscal Reckoning to Come: Paying for Virus Relief in an Era of Tax Cuts

By Ajay K. Mehrotra

To combat the coronavirus pandemic, the federal government has enacted relief packages totaling nearly $2.5 trillion, with more aid likely to come. The fourth and latest effort contains $75 billion in grants for hospitals, and $25 billion to improve coronavirus testing. As economist Austan Goolsbee has rightly noted, “the number one rule of virus economics…

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