How are political and economic disruptions impacting the tax landscape?

Governments around the world have responded swiftly to the economic fallout from COVID-19. This response to the current economic crisis has been largely financed by debt, with the Congressional Budget Office estimating that the 2020 US federal budget deficit will be $3.7 trillion dollars, which as a percentage of GDP would make this year’s deficit the largest since 1945. What business leaders need to know is that while COVID relief may continue in the short term, it likely will not continue on the scale we have seen to date. Additional relief will likely focus on providing economic stimulus to help advance the recovery, rather than a bridge of support.

Podcast host Myles Corson welcomes Marna Ricker, EY Americas Vice Chair – Tax. In addition to discussing the depth of the US government response to COVID-19, they cover the implications of the CARES Act and what finance executives should prepare for.

They also explore the impact the 2020 US presidential election will have on the tax landscape and overall economy. To manage through these political uncertainties, finance leaders can prepare with modeling and understanding the provisions in both candidates’ tax plans.

The discussion also analyzes the role that technology has played in tax during COVID-19, and the types of technology and software CFOs and tax executives are seeking out to help them access more data at a faster pace.

Key takeaways:

• Governments could look to tax and trade policies that further a post-COVID recovery agenda, specifically focused on job creation and targeted incentives to bring people back to work.
• Changes in the Administration and the Congress during this election cycle are likely to be very impactful on the tax policy agenda.
• Finance leaders should take a comprehensive approach as they look to the next 12 – 18 months and shift their focus to sustainable, long-term changes.
• Technology is transforming the way companies do business, and their overall tax strategy and planning must keep up with new business models and new digital assets.

For your convenience, full text transcript of this podcast is also available. Read the transcript.