Other Business
Other Investment and Tax Incentives
Date:
December 17, 2010
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Economic Target:
Manufacturers
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$156.81 billion
Deficit Impact:
$77.18 billion The 2010 tax cut package included a provision that would temporarily allow businesses to immediately write off the costs of equipment for the next two years. In addition, the package included a number of tax extenders that provide various targeted benefits.
Source:
Notes:
Maximum amount represents peak cost of these provision in the ten-year window. Deficit impact represents net costs of these provision from 2011-2020. Because the cost of the business expensing will be partially recouped after it expires, there is a significant difference between these two numbers.
2-Year Extension of 2001/2003 Tax Cuts
Date:
December 17, 2010
Who:
IRS
Economic Target:
Consumers
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$407.64 billion
Deficit Impact:
$407.64 billion The 2010 tax cut included a two-year extension of all the provisions from the 2001/2003 tax cuts.
Source:
Notes:
Maximum amount and deficit impact represent gross and net cost, respectively, of this portion of the bill from 2011-2020.
2010 Tax Cut
Who:
Congress
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Economic Target:
Other Business
Action Type:
Direct Spending
Action Type:
Tax Break
Maximum Amount:
$937.44 billion
Deficit Impact:
$857.81 billion With the initial expiration of ther 2001/2003 tax cuts set for December 31, 2010, lawmakers acted to prevent the tax cuts from expiring. The 2001/2003 tax cuts were extended for all taxpayers for two years, beyond the President's initial proposal of extending them only for those earning under $200,000 ($250,000 for couples).
Notes:
Maximum amount represents peak cost of provisions in the ten-year window. Deficit impact represents net impact of the bill from 2011-2020.
Net Carryback Loss Extension and Expansion
Date:
November 6, 2009
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$33.20 billion
Amount Spent:
$33.20 billion
Deficit Impact:
$0.06 billion This provision would reduce corporate taxes by extending net operating loss carryback rules under the stimulus act from two to five years.
Notes:
Maximum amount reflects the peak total loss in government revenue. Deficit impact based on CBO calculation of ten-year deficit impact (http://finance.senate.gov/sitepages/leg/LEG%202009/103009_CBO_Estimates.pdf).
Tax Provisions
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$420.00 billion
Amount Spent:
$284.50 billion
Deficit Impact:
$275.00 billion Provisions are part of the $821 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant tax breaks for individuals and corporations, among other spending provisions.
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Several tax provisions shift deductions for depreciation or other tax savings into the next several years. These are tax breaks that would normally be written off over a longer period of time. Much of the cost for these provisions is eventually made back in the "out" years, because it is the timing--not the amount--of an existing tax break that is being shifted. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of tax disbursal rates since last reported on Recovery.gov in December 2010 and extrapolated to the present by CRFB staff.
In the January 2010 baseline, CBO estimated that an additional $26 billion would be made available for the Build America Bond program under the Infrastructure Financing Tools of the "Other Tax Provisions" category.
Spending Provisions
Who:
Congress
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Direct Spending
Maximum Amount:
$551.00 billion
Amount Spent:
$477.50 billion
Deficit Impact:
$556.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas.
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount Spent as of 9/21/2012 (http://www.recovery.gov/?q=/content/agency-summary&agency_code=75).
*In the Budget and Economic Update in August 2009 (http://cbo.gov/ftpdocs/105xx/doc10521/08-25-BudgetUpdate.pdf), CBO estimated that an additional $2 billion would be made available for Medicaid matches, increasing the maximum amount for Health Care Spending.
In the January 2010 baseline, CBO estimated that the total cost of the bill would total $862 billion, after making several upward revisions (including $21 billion more for unemployment insurance, $34 billion more for food stamps, and $3 billion less for Medicaid state matching).
CBO's August 2010 Budget Update re-estimated the total of ARRA, putting the number at $814 billion.
CBO's January 2011 baseline upped the estimate of ARRA slightly to $821 billion.
Temporary Corporate Tax Cuts
Date:
February 13, 2008
Policy Area:
Fiscal Policy
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$51.00 billion
Amount Spent:
$51.00 billion
Deficit Impact:
$7.50 billion This law (H.R. 5140) included two provisions aimed at providing temporary tax breaks for businesses. The first provision allowed businesses to deduct 50 percent of their investments in certain depreciable property (e.g. equipment and computer software) from 2008 taxable income. The second provision increased the expensing allowance for depreciable business assets up to $250,000 and increased the maximum phase-out threshold for the allowance to $800,000.
Source:
Corporate Tax Breaks
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Other Business
Action Type:
Tax Break
Maximum Amount:
$76.00 billion
Amount Spent:
$32.10 billion
Deficit Impact:
$6.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas, and tax breaks for individuals and corporations.
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Several tax provisions shift deductions for depreciation or other tax savings into the next several years. These are tax breaks that would normally be written off over a longer period of time. Much of the cost for these provisions is eventually made back in the "out" years, because it is the timing--not the amount--of an existing tax break that is being shifted. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of disbursal rates since last reported on Recovery.gov in December 2010, and extrapolated to the present by CRFB staff.
SBA Actions Promoting Small Business Lending
Date:
March 16, 2009
Who:
SBA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Regulatory Change Programs are part of a package of government actions by the Treasury Department and Small Business Administration (SBA) on March 16, 2009 to promote small business lending.
These measures include:
• Eliminating borrower and lender fees for SBA-backed 504 loans, which combines government-backed loans with private mortgage loans to support community development.
• Eliminating up-front fees for SBA 7(a) loans.
Notes:
Costs of provisions are unknown.
Health Care Spending
Date:
February 17, 2009
Who:
Congress
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Direct Spending
Maximum Amount:
$146.00 billion
Amount Spent:
$114.42 billion
Deficit Impact:
$126.00 billion Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas, and tax breaks for individuals and corporations.
Notes:
Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount Spent as of 11/3/2012 (http://www.recovery.gov/?q=/content/agency-summary&agency_code=75).
*In the Budget and Economic Update in August 2009 (http://cbo.gov/ftpdocs/105xx/doc10521/08-25-BudgetUpdate.pdf), CBO estimated that an additional $2 billion would be made available for Medicaid matches, increasing the maximum amount for Health Care Spending. However, in the January 2010 baseline (http://www.cbo.gov/ftpdocs/108xx/doc10871/01-26-Outlook.pdf), CBO estimated that total Medicaid matching will be $3 billion lower.
