Fiscal Policy
Highway Trust Fund
Date:
August 7, 2009
Who:
Dept. of Trans.
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Direct Spending
Maximum Amount:
$7.00 billion
Amount Spent:
$7.00 billion The highway trust fund was at risk of running out of funds in August 2009. The trust fund, made up of revenue from gas taxes at the pump, has steadily declined over the past several years because the recession has caused people to drive less, sales of fuel-efficient cars have increased, and Congress has not raised the federal fuel tax since 1993 despite increased construction costs and inflation. This law serves as a temporary replenishment of the highway trust fund over the August legislative recess.
Notes:
Maximum amount and amount spent reflect the $7 billion infusion to the highway trust fund. Since the $7 billion addition by Congress from the general fund of the Treasury to the trust fund is an intergovernmental transfer, the deficit impact is zero. However, CBO estimates that the $7 billion addition to the trsut fund will shift $1 billion in outlays originally planned for FY 2010 into the final two months of FY 2009. As a result, outlays will increase by $1 billion on 2009 but will have no net impact over the 2009-2010 period on the federal budget.
Cash for Clunkers
Date:
June 11, 2009
Who:
Dept. of Trans.
Policy Area:
Fiscal Policy
Economic Target:
Manufacturers
Action Type:
Direct Spending
Maximum Amount:
$3.00 billion
Amount Spent:
$2.88 billion
Deficit Impact:
$2.88 billion The Consumer Assistance to Recycle and Save Act (CARS), also known as "Cash for Clunkers," established a program for owners of gas-guzzling cars and trucks to receive tax credits worth up to $4,500 for purchasing newer, cleaner automobiles. The trade-in vehicle had to get a combined city and highway fuel economy rating of 18 miles per gallon or less.
Notes:
Maximum amount reflects the total authorized funds from H.R.2751. Amount spent equals the amount appropriated. Deficit impact based on CBO analysis. Light vehicle sales data from Bureau of Economic Analysis (http://www.bea.gov/national/index.htm).
Other Individual Tax Breaks
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$72.00 billion
Amount Spent:
$57.00 billion
Deficit Impact:
$72.00 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:
Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. 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 April 2010, and extrapolated to the present by CRFB staff.
Other Individual Tax Breaks
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$0.00 billion
Deficit Impact:
$0.00 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:
Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Deficit impact is the final cost of a provision from 2009-2019. Amount is spent is currently unknown.
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:
Individual Tax Rebates
Date:
February 13, 2008
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$106.00 billion
Amount Spent:
$96.00 billion
Deficit Impact:
$106.00 billion This law (H.R. 5140) provided tax rebates to certain individuals filing for tax years 2007 or 2008. For individuals with a income-lax liability or an earned income of at least $3,000, rebates were between $300 and $600. For couples filing joint tax returns, the tax rebates were between $600 and $1,200. In addition, individuals or couples received a $300 tax credit for each child living in their household. The law stipulated that the rebates would be phased out for incomes exceeding $75,000 for individuals and $150,000 for couples filing together.
Source:
Notes:
Maximum amount and deficit impact indicates CBO estimates for Fiscal Year 2008 and Fiscal Year 2009. Amount spent indicates money distributed as of 12/31/2008 (http://www.treasury.gov/press/releases/hp1351.htm).
Other Spending Provisions
Date:
February 17, 2009
Who:
Congress
Policy Area:
Fiscal Policy
Economic Target:
Other
Action Type:
Direct Spending
Maximum Amount:
$26.00 billion
Amount Spent:
$10.16 billion
Deficit Impact:
$26.00 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 taken from CBO's calculation of budget authority over the 2009-2019 period. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount spent as of 8/18/2010.
Other Tax Provisions
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Other
Action Type:
Tax Break
Maximum Amount:
$71.00 billion
Amount Spent:
$13.00 billion
Deficit Impact:
$71.00 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. 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 April 2010, and extrapolated to the present by CRFB staff.
*In the January 2010 baseline (http://www.cbo.gov/ftpdocs/108xx/doc10871/01-26-Outlook.pdf), CBO estimated an additional $26 billion would be made available for the Build America Bonds (part of the "Infrastructure Financing Tools" category above.
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:
$39.00 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 June 2010, and extrapolated to the present by CRFB staff.
Alternative Minimum Tax Patch
Date:
February 17, 2009
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$85.00 billion
Amount Spent:
$20.00 billion
Deficit Impact:
$70.00 billion The alternative minimum tax provision in the federal tax code, while originally added to prevent a small group of high-income earners from owing little or no taxes through the taking of many deductions, has in recent years come to affect upper-middle-income earners because it lacks inflation indexing. This alternative minimum tax "patch," which applies to 2009 only, raises the level of income that is exempt from the alternative minimum tax.
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. In the case of the Alternative Minimum Tax Patch, the peak cumulative cost would occur in 2010, creating a maximum cost of approximately $85 billion. 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 June 2010 and extrapolated to the present by CRFB staff.
