COVID-19 and Fiscal Policies: The Paycheck Protection Programme: A Tax Expenditure in Reverse? - Intertax View COVID-19 and Fiscal Policies: The Paycheck Protection Programme: A Tax Expenditure in Reverse? by - Intertax COVID-19 and Fiscal Policies: The Paycheck Protection Programme: A Tax Expenditure in Reverse? 48 8/9

The Paycheck Protection Programme (PPP) enacted by the US Congress in March 2020 furnishes an example of a spending programme that could have been structured as a tax provision. If it had been enacted as a tax provision, the PPP would almost certainly have been drafted more tightly, in a way that could support a precise revenue estimate. The Internal Revenue Service might have administered the PPP more effectively and at a lower administrative cost than was involved in using private banks. The lack of public hearings before enactment contributed to poor design of the PPP.

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