US Treasury plans to borrow $2.99 trillion from April through June to cover the federal coronavirus response. Treasury borrowed $1.28 trillion for all of last year. Federal revenue is falling and Congress approved tax cuts and spending increases that will boost the deficit by $2.4 trillion to provide financial relief to individuals and businesses. Meanwhile, President Trump continues to insist on adding a payroll tax cut to the next coronavirus stimulus bill. Hill Republicans have been less than enthusiastic.  

Speaking of falling revenues: Texas’ sales tax revenue is falling. The  comptroller reported that the state’s share of sales tax revenue for April is 9.3 percent lower than a year ago, the steepest decline since the Great Recession.

Florida’s sales tax receipts are lower, too. For March, sales tax collections are $770 million below estimates, down 25 percent. April revenues will likely be even worse. 

French Finance Minister: Now more than ever, a digital tax. French Finance Minister Burno LeMaire has renewed calls for a European tax on digital businesses. He says the coronavirus crisis "shows that those who are making out the best are the digital giants, simply because they are able to keep their businesses going and yet they are the ones that are the least taxed." About 140 members of the Organization for Cooperation Economic Development (OECD) are working to rewrite international tax rules for tech enterprises. Because of the pandemic, it’s not clear they’ll finish their work by year’s end, as planned. 

In India; Cryptocurrency exchanges seek tax guidance. After India’s Supreme Court ruled that financial institutions can provide banking services to cryptocurrency firms, the nation’s cryptocurrency exchanges asked the Reserve Bank of India for guidance. They want to know  whether they are subject to the country’s Goods and Services Tax and say banks won’t provide services without clarity. 

Also in India. Taxing booze. When the government began opening the economy after a broad shutdown to combat COVID-19, liquor stores were among the first to open. Residents flocked to the shops, so the government has imposed a 70 percent tax on alcohol.  

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].