Could tax cuts mitigate the economic effects of coronavirus? White House officials say they are looking at targeted tax cuts, though it is unclear what benefit they’d have. President Trump also has ramped up his pressure on the Federal Reserve to lower interest rates. The tax cut conversations followed last week’s sharp decline in the stock market, but remain fluid, reports The Washington Post. 

Could the virus affect tax filing season? H&R Block’s Tax Institute executive director Kathy Pickering is “not anticipating…an impact in terms of filing this year” and the National Association of Tax Professionals (NATP) has received no reports of issues from its 35,000 members. But, if a coronavirus outbreak hits in the next month, it could force a significant number of taxpayers to file for extensions. It also could reduce IRS operations to government-shutdown levels of  late 2018 and early 2019, according to Nancy Kasten, an NATP spokesperson.

IRS: Average tax refunds are about the same as this time last year. The IRS received 50 million tax returns during  first four weeks of tax filing season.  Through February 21, the average tax refund was $3,125, nearly identical to the average $3,143 refund through February 22, 2019. About 77.9 percent of filers requested refunds, down slightly from 80.7 percent at the same time last year.  

More White House hints of 2021 tax cuts.  Chief of Staff Mick Mulvaney told the Conservative Political Action Conference  a re-elected President Trump’s top priority would be a new round of tax cuts. He says they’d include reducing the corporate tax rate from 21 percent to 20 percent, and making permanent those provisions  of the Tax Cuts and Jobs Act that are due to expire in 2025 or sooner.  Also still on the table: Indexing capital gains to inflation.  

Michigan lawmakers propose 24 percent wholesale tax on vaping products. A bipartisan group of state senators proposes a six-bill package to  tax vaping products and align the legal age for smoking tobacco and e-cigarette products with new federal requirements by raising them from 18 to 21. Senate Minority Leader Jim Ananich says he proposed the 24 percent tax to find a middle ground between no tax and the 32 percent tax on traditional tobacco products.

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].