The Case for a Temporary COVID 19 Income Tax Levy Now, During the Crisis
Governments' handling of the novel coronavirus 2019 (COVID 19) pandemic can be debated, but most countries have now implemented strategies that significantly restrict social interaction to limit the spread of the coronavirus. Concerns are now growing about the effects of these strategies on the economy and the associated effects on social determinants of health. Governments and communities may be willing to spend to counter the immediate effects of the crisis on social determinants of health, but the opportunity costs of such spending will be significant forgone benefits in the future, associated with reduced access to healthcare and reduced spending to address social determinants of health. One policy option that could reduce the longer term consequences of increased government spending in response to the crisis is a temporary COVID 19 income tax levy. Two broad characteristics of the COVID 19 crisis suggest that the implementation of an income tax levy now, during the crisis, is a positive policy option.
Applied Health Economics and Health Policy