To mitigate the negative economic effects of the Corona crisis, several countries have utilized tax policy instruments. In Europe, all countries quickly introduced immediate responses to ensure liquidity and enhance business and household cash flows in the short run. In addition, some countries already started to implement mid-term oriented measures (e.g. accelerated deprecation schemes) aimed at the economic recovery by boosting investment and consumption. In the long run, the increase in government expenditure caused by these tax policies will have to be financed by fiscal consolidation measures.

The project aims to accompany the tax policy reactions from an academic point of view and on a long-term perspective in the EU and the US. Aspects that will be analyzed are crisis-enhancing measures that might interfere with the efforts to a fast recovery of the economy, the relation between COVID-19 policy responses and country-characteristics, or an evaluation of possible fiscal consolidation policies.