Stimulus.org - Consumers

Other Investment and Tax Incentives

Jason Peuquet — Fri, 07 Jan 2011 16:23:09 +0000

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:

156808000000

Deficit Impact:

77178000000

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:

CBO Cost Estimate

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.

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Estate Tax Change

Jason Peuquet — Fri, 07 Jan 2011 16:20:14 +0000

Date:

December 17, 2010

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Economic Target:

Other

Action Type:

Tax Break

Maximum Amount:

68149000000

Deficit Impact:

68149000000

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:

CBO Cost Analysis

Notes:

Maximum amount and deficit impact represent peak and net cost of this provision--which are the same--from 2011-2020.

CRFB Analysis of Estate Tax Options and Costs

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Payroll Tax Holiday

Jason Peuquet — Fri, 07 Jan 2011 16:13:09 +0000

Date:

December 17, 2010

Who:

IRS

Who:

Various Agencies

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

111653000000

Deficit Impact:

111653000000

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:

CBO Cost Estimate

Notes:

Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.

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2-Year AMT Patch

Jason Peuquet — Fri, 07 Jan 2011 16:07:01 +0000

Date:

December 17, 2010

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

136676000000

Deficit Impact:

136676000000

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act included a two-year "patch" of the Alternative Minimum Tax (AMT).

Source:

CBO Cost Estimate

Notes:

Maximum amount and deficit impact represent the peak and net cost of this provision--which are the same--from 2011-2020.

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2-Year Extension of 2001/2003 Tax Cuts

Jason Peuquet — Fri, 07 Jan 2011 16:04:32 +0000

Date:

December 17, 2010

Who:

IRS

Economic Target:

Consumers

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

407640000000

Deficit Impact:

407640000000

The 2010 tax cut included a two-year extension of all the provisions from the 2001/2003 tax cuts.

Source:

CBO Cost Estimate

Notes:

Maximum amount and deficit impact represent gross and net cost, respectively, of this portion of the bill from 2011-2020.

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2010 Tax Cut

Jason Peuquet — Fri, 07 Jan 2011 15:58:23 +0000

Who:

Congress

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Economic Target:

Other Business

Action Type:

Direct Spending

Action Type:

Tax Break

Maximum Amount:

937440000000

Deficit Impact:

857810000000

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).

Included in the tax cut deal were several additional tax cuts and extensions: a 13-month extension in unemployment insurance, a temporary two percentage point cut in the Social Security payroll tax on the employee side (bringing the rate down from 6.2 to 4.2 percent), a two-year AMT patch, temporary full business expensing for new equipment, an extension of ARRA changes to refundable tax credits, and several other tax incentives.

The total deficit impact of the bill was estimated to be $858 over the coming decade, larger than the $821 billion stimulus package passed in early 2009.

Source:

CBO Cost Analysis of Tax Cut Package

Notes:

Maximum amount represents peak cost of provisions in the ten-year window. Deficit impact represents net impact of the bill from 2011-2020.

CRFB Commentary on Tax Cut Package

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Food Stamps

Jason Peuquet — Wed, 27 Jan 2010 22:50:18 +0000

Date:

December 24, 2009

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Direct Spending

Maximum Amount:

500000000

Amount Spent:

500000000

Deficit Impact:

500000000

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.

Source:

Department of Defense Appropriation Bill Summary

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.

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Worker, Homeownership, and Business Assistance Act

Jason Peuquet — Wed, 27 Jan 2010 17:51:40 +0000

Date:

November 6, 2009

Who:

Congress

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Economic Target:

Housing

Action Type:

Direct Spending

Action Type:

Tax Break

Maximum Amount:

48330000000

Amount Spent:

Deficit Impact:

-40000000

The Worker, Homeownership, and Business Assistance Act of 2009 passed in November 2009 included several extenders on provisions under the American Recovery and Reinvestment Act.

Source:

CBO: Worker, Homeownership, and Business Assistance Act of 2009

JCT: Worker, Homeownership, and Business Assistance Act of 2009

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Extended through Defense Appropriations Bill

Jason Peuquet — Wed, 27 Jan 2010 17:43:28 +0000

Unemployment Rate

Date:

December 24, 2009

Who:

Dept. of Labor

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Direct Spending

Maximum Amount:

11300000000

Amount Spent:

11300000000

Deficit Impact:

11300000000

In the Department of Defense appropriations bill, an additional $13.6 billion in funding for unemployment insurance and benefits was included. The amendment included increased benefits and increased the number of weeks unemployed workers can be eligible for benefits by 20 weeks, from 79 to 99 weeks in the highest unemployment states. Unemployed workers are now eligible to receive 99 weeks of benefits beginning now through February 28, 2010.

Extended unemployment benefits were originally passed as part of the American Recovery and Reinvestment Act.

Source:

Department of Defense Appropriations Bill Summary

Conference Report on Amendments

Notes:

Estimates from CBO show a total cost of $11.3 billion for the increase in benefits.

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Extended through Defense Appropriations Bill

Jason Peuquet — Wed, 27 Jan 2010 17:30:59 +0000

Date:

December 24, 2009

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

6000000000

Amount Spent:

6000000000

Deficit Impact:

6000000000

As part of the Department of Defense appropriation bill passed in late December 2009, $6 billion was provided for COBRA health insurance subsidies. Under the bill, COBRA subsidies of 65% were expanded from nine to 15 months for recently unemployed workers, bringing the new eligibility threshold date to February 28, 2010.

Extended COBRA subsidies were originally passed as part of the American Recovery and Reinvestment Act.

Source:

Defense Appropriations Bill Summary

CBO January 2010 Baseline Estimates

Notes:

Updated estimates from CBO now project lost revenues from the COBRA subsidy to equal $6 billion over the 2010 -2011 period.

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Unemployment Trust Fund

Jason Peuquet — Mon, 24 Aug 2009 14:27:08 +0000

Unemployment Rate

Date:

August 7, 2009

Who:

Dept. of Labor

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Direct Spending

Maximum Amount:

7500000000

Amount Spent:

7500000000

Deficit Impact:

The unemployment trust fund was a risk of running out of money in August 2009. The economic recession has fueled unemployment claims, depleting unemployment budgets in 18 states. With unemployment expected to remain high through the coming months, more states are expected to request loans from the federal unemployment trust fund. The law appropriates $7.5 billion to the unemployment trust fund.

Source:

White House Release

CBO Cost Estimate

Notes:

Amount spent reflects the total funds transferred into the unemployment trust fund, all of which the CBO expects the government to spend. Since the $7.5 billion addition by Congress from the general revenue of the Treasury to the trust fund is an intergovernmental transfer, the deficit impact is zero. Also, because states are required under law to cover all unemployment payments, those costs are already assumed under CBO's baseline projections. Thus, the $7.5 billion addition to the trust fund will not increase direct spending relative to the baseline.

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Highway Trust Fund

Jason Peuquet — Wed, 19 Aug 2009 19:10:08 +0000

Date:

August 7, 2009

Who:

Dept. of Trans.

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Direct Spending

Maximum Amount:

7000000000

Amount Spent:

7000000000

Deficit Impact:

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.

Source:

White House Press Release

CBO Cost Estimate

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.

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Raise Limit on Insured Deposits: $100K to $250K

Maya MacGuineas — Mon, 17 Aug 2009 14:09:49 +0000

Date:

October 3, 2008

Who:

FDIC

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Economic Target:

Depository Institutions

Action Type:

Regulatory Change

Maximum Amount:

700000000000

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

The Emergency Economic Stabilization Act of 2008 temporarily raised from $100,000 to $250,000 the amount of deposit and share insurance in FDIC and Federal Credit Union member organizations. Initially, this law stated that the increased limit on insured deposits would last until 12/31/2009. However, On 5/20/2009 President Obama signed the Helping Families Save Their Homes Act, extending the temporary deposit insurance limit of $250,000 untill 12/31/2013. After that date, the FDIC deposit insurance limit will return to $100,000 except for IRAs and other retirement accounts.

Source:

Emergency Economic Stabilization Act of 2008

FDIC Release 5/22/2009

Notes:

Limit will return to $100,000 after Dec. 31, 2013. Maximum amount indicates total value of new insured deposits.

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Enhanced Consumer Protection for Credit Cards

Maya MacGuineas — Mon, 17 Aug 2009 14:04:40 +0000

Date:

December 18, 2008

Who:

Fed

Who:

NCUA

Who:

Treasury

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Economic Target:

Financial Institutions

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

New credit card regulations adopted under the Federal Trade Commission Act, in coordination with similar sets of new rules adopted by the Office of Thrift Supervision and the National Credit Union Administration.

The new regulations, as described on the Federal Reserve's website:

"Protect consumers from unexpected interest charges, including increases in the rate during the first year after account opening and increases in the rate charged on pre-existing credit card balances.
Forbid banks from imposing interest charges using the "two-cycle" billing method.
Require that consumers receive a reasonable amount of time to make their credit card payments.
Prohibit the use of payment allocation methods that unfairly maximize interest charges.
Address subprime credit cards by limiting the fees that reduce the amount of available credit."

Source:

Federal Reserve Announcement 12/18/2008

Details of New Rules

Notes:

Associated costs, if any, are unknown.

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Home Affordable Refinance Program

Maya MacGuineas — Mon, 17 Aug 2009 14:01:37 +0000

Date:

February 18, 2009

Who:

Treasury

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Consumers

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Mortgage owners will be allowed to refinance with less home equity than what was permitted by previous regulations. Program applies to loans owned or guaranteed by Fannie Mae and Freddie Mac and is one of two principle programs under the Treasury's Making Home Affordable program.

Source:

Treasury March 4 Term Sheet

Notes:

Budgetary impact of program is not known. Maximum and current costs also unknown.

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Other Individual Tax Breaks

suggp — Mon, 03 Aug 2009 14:03:23 +0000

Other Individual Tax Breaks

Date:

February 17, 2009

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

72000000000

Amount Spent:

53500000000

Deficit Impact:

72000000000

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.

Other Individual Tax Breaks (in millions of dollars)
Year	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2009-2019
Health Insurance Assistance	14,302	9,206	1,493	67	0	0	0	0	0	0	0	25,069
EITC Increase	23	2,349	2,291	0	0	0	0	0	0	0	0	4,663
Child Tax Credit Expansion	0	7,489	7,342	0	0	0	0	0	0	0	0	14,830
American Opportunity Tax Credit	791	4,425	5,040	0	0	0	0	0	0	0	0	10,256
Make 40% of the allowable American Opportunity Tax Credit refundable	331	1,725	1,595	0	0	0	0	0	0	0	0	3,651
Temporarily allow computer technology and equipment as a qualified higher education expense for qualified tuition programs for 2009 and 2010	0	0	0	1	1	1	1	1	1	1	1	6
Extension of first-time homebuyer credit	1,115	3,261	-235	-38	102	680	597	514	384	164	94	6,638
Exclude up to $2,400 of unemployment insurance benefits from gross income for taxable year 2009	948	3,792	0	0	0	0	0	0	0	0	0	4,740
Sales tax deduction for purchase	424	1,269	-9	0	0	0	0	0	0	0	0	1,684
Totals	17,934	33,516	17,517	30	103	681	598	515	385	165	95	71,537

Source:

Analysis of the Final Bill by the Joint Committee on Taxation

Text of "American Recovery and Reinvestment Act of 2009"

Recovery.gov

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 December 2010, and extrapolated to the present by CRFB staff.

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Other Individual Tax Breaks

suggp — Mon, 03 Aug 2009 14:02:55 +0000

Date:

February 17, 2009

Who:

IRS

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

Amount Spent Special Symbol:

Deficit Impact:

Source:

Analysis of the Final Bill by the Joint Committee on Taxation

Text of "American Recovery and Reinvestment Act of 2009"

Notes:

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Pension Relief

suggp — Fri, 10 Jul 2009 20:01:28 +0000

Date:

December 23, 2008

Who:

IRS

Policy Area:

Financial Sector Policy

Economic Target:

Consumers

Action Type:

Regulatory Change

Maximum Amount:

2509000000

Amount Spent:

Deficit Impact:

2509000000

The Worker, Retiree, and Employer Recovery Act waives rules requiring individuals to make an annual withdrawal from their retirement accounts for one year, and reduces funding requirements for certain defined pension benefits.

Source:

Worker, Retiree, and Employer Recovery Act of 2008

Notes:

Max Amount and Deficit Impact represent ten year numbers. Program makes money is year one due to timing shift.

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Extended Unemployment Insurance

suggp — Fri, 10 Jul 2009 19:45:38 +0000

Unemployment Rate

Date:

June 1, 2008

Who:

Dept. of Labor

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Direct Spending

Maximum Amount:

12800000000

Amount Spent:

12800000000

Deficit Impact:

8500000000

Increase in funding for unemployment benefits and extension of emergency compensation through August 27, 2009.

Source:

Supplemental Appropriations Act of 2008

Notes:

Actual cost unavailable, amounts based on 2009 CBO estimates of related bill (http://www.cbo.gov/ftpdocs/91xx/doc9148/hr5749.pdf). Amount spend and maximum amount based upon cost for 2008 and 2009, deficit impact represents ten year cost.

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Individual Tax Rebates

Maya MacGuineas — Fri, 10 Jul 2009 19:03:05 +0000

Stimulus 2008 Individual Tax Rebates

Date:

February 13, 2008

Policy Area:

Fiscal Policy

Economic Target:

Consumers

Action Type:

Tax Break

Maximum Amount:

106000000000

Amount Spent:

96000000000

Deficit Impact:

106000000000

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. The rebates were not given to individuals who did not report their Social Security number on their tax returns.

Source:

Economic Stimulus Act of 2008

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).

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