Fiscal Policy
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.
Estate Tax Change
Date:
December 17, 2010
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Economic Target:
Other
Action Type:
Tax Break
Maximum Amount:
$68.15 billion
Deficit Impact:
$68.15 billion The tax cut package included a lower estate and gift taxes for the next two years, providing a higher exemption threshold and a lower rate for estate and gift transfers beyond that threshold. The exemption was raised to $5 million and the rate set at 35 percent, compared to a $1 million exemption and 55 percent rate as previously scheduled under current law for 2011 and lower than the Administration's initial proposal of a $3.5 million exemption and a 45 percent tax rate beyond that.
Source:
Notes:
Maximum amount and deficit impact represent peak and net cost of this provision--which are the same--from 2011-2020.
Payroll Tax Holiday
Date:
December 17, 2010
Who:
IRS
Who:
Various Agencies
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$111.65 billion
Deficit Impact:
$111.65 billion The tax cut package included a one-year payroll tax cut of two percentage points on the employee side of the FICA tax, reducing the tax for employees from 6.2 percent to 4.2 percent.
Source:
Notes:
Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.
Unemployment Insurance
Date:
December 17, 2010
Who:
Congress
Policy Area:
Fiscal Policy
Action Type:
Direct Spending
Maximum Amount:
$56.51 billion
Deficit Impact:
$56.51 billion The tax cut package included a 13-month extension for unemployment benefits for the long-term unemployed, keeping the maximum number of weeks an individual can continue receiving unemployment benefits at 99 weeks in areas of high unemployment.
Source:
Notes:
Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.
2-Year AMT Patch
Date:
December 17, 2010
Who:
IRS
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Tax Break
Maximum Amount:
$136.68 billion
Deficit Impact:
$136.68 billion The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act included a two-year "patch" of the Alternative Minimum Tax (AMT).
Source:
Notes:
Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--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.
Continuing Extension Act of 2010
Date:
April 15, 2010
Who:
Dept. of Labor
Policy Area:
Fiscal Policy
Economic Target:
Other
Action Type:
Direct Spending
Maximum Amount:
$13.91 billion
Amount Spent:
$13.91 billion
Deficit Impact:
$13.91 billion The Continuing Extension Act of 2010 extended unemployment benefits for previously unemployed workers for an additional two months, extending the benefit until the beginning of June.
Notes:
None of the provisions of this bill were offset, as they were deemed "emergency" spending to lawmakers which exempts the bill from having to be offset under current PAYGO rules. Thus, the maximum amount and deficit impact reflect cumulative spending and reduced revenue over the 2010-2011 period.
Temporary Extensions Act of 2010
Date:
March 2, 2010
Who:
Dept. of Labor
Policy Area:
Fiscal Policy
Economic Target:
Other
Action Type:
Direct Spending
Maximum Amount:
$8.02 billion
Amount Spent:
$8.02 billion
Deficit Impact:
$8.02 billion As part of the Temporary Extension Act of 2010, unemployment benefits were extended for another month, raising the maximum number of eligible weeks in which unemployed workers can receive benefits up from 99 to 103.
Extended unemployment insurance benefits were originally passed as part of the American Recovery and Reinvestment Act.
Notes:
Other minor spending provisions were also included in the legislation. The deficit impact reflects the net change in the deficit from unemployment insurance.
Maximum amount reflects total increased outlays and reduced revenues for the provision over the 2010-2020 period.
Unemployment Insurance Extensions
Who:
Dept. of Labor
Policy Area:
Fiscal Policy
Economic Target:
Other
Action Type:
Direct Spending
Maximum Amount:
$69.64 billion
Amount Spent:
$69.64 billion
Deficit Impact:
$67.06 billion Several bills since November 2009 have extended the duration in which unemployed workers can receive unemloyment insurance benefits, originally extended as part of the American Recovery and Reinvestment Act. So far, lawmakers have extended unemployment benefits 3 times since ARRA was passed in February 2009, raising the maximum number of eligible weeks from 59 to over 99.
Source:
Notes:
Food Stamps
Date:
December 24, 2009
Policy Area:
Fiscal Policy
Economic Target:
Consumers
Action Type:
Direct Spending
Maximum Amount:
$0.50 billion
Amount Spent:
$0.50 billion
Deficit Impact:
$0.50 billion The Department of Defense appropriations bill contained a provision to extend the Supplemental Nutrition Assistance Program (SNAP), or food stamps, while also providing more funding to help cover state administration costs fo the program and to speed up the processing of applications.
Extended food stamp program funding was originally passed as part of the American Recovery and Reinvestment Act.
Notes:
Cost reflects the total deficit impact of the provision, calculated by using CBO estimates of extensions from ARRA in the jobs bill (as passed by the House on December 16, 2009, found at http://www.cbo.gov/ftpdocs/108xx/doc10874/hr2847.pdf) but altered to reflect a two month extension in funding for the program.
