The COVID-related tax relief act of 2018 provides more than $1 trillion for state and local governments, but does the bill actually provide COVID relief? Probably not. But the bill lays the foundation for a state-wide COVID relief package. COVID-related businesses include those involved in border and exclave businesses, live venue service providers, and transportation services. The act also provides small business COVID relief through data transparency, customer service, and a border closure recovery grant program. It also includes funds for exclave community and small business COVID businesses.
The new plan includes expanded COVID-related tax relief, more money for families and smaller businesses, and increased paid sick leave. It also includes funding for the distribution of vaccines. And unlike previous COVID relief packages, the new law includes provisions aimed at alleviating the liquidity crunch. However, this relief will only be temporary, and the Congress needs to consider how it will affect businesses and entrepreneurs.
COVID-19, for example, gave employers tax breaks to encourage hiring new employees and retaining existing employees. However, the implementation of this law resulted in $237 billion in foregone revenues in FY 2021-31. As a result, the COVID pandemic created significant economic challenges in the U.S. economy and led to the closure of countless businesses. According to the IRS report, these tax relief measures will cost the federal government $237.8 billion in foregone revenue in the fiscal years 2021-2031.
