Full Text: Revised Revenue Estimates For Conference Agreement On H.R. 2264.

A revised version of JCX-11-93 from the Joint Committee on Taxation shows the effects of last-minute budget tinkering, including the addition of language that would ease the tax payment burden on those subject to retroactive tax increases.

Other revisions include the deletion of a provision that would have transferred Federal Reserve funds, a loosening of the FICA tax credit rules, and the addition of Customs Service overtime reform. The table, which still has not been officially released by the JCT, also includes a distributional analysis that was not included in the earlier version of JCX-11-93.

[Editor's note: Several figures in the table were illegible. Where possible, Tax Analysts has provided numbers that have been interpolated from related entries and other documents. An official version of JCX-11-93 should be released soon.]

====== FULL TEXT ======

                     JOINT COMMITTEE ON TAXATION

  ESTIMATED BUDGET EFFECTS OF THE REVENUE PROVISIONS OF H.R. 2264,

                       Fiscal Years 1994-1998

                        [Millions of Dollars]

I. REVENUE-RAISING PROVISIONS

A. Individual Income and Estate and Gift

   1. Increase tax rates paid by high-

      (a) Add fourth bracket at 36% rate

   2. Repeal Health Insurance (HI) wage

   3. Reinstate top estate and gift tax

   4. Reduce deductible portion of

   5. Deny deduction for club dues

   6. Deny deduction for executive pay

   7. Reduce compensation that can be taken

   8. Limit deduction for moving expenses;

   9. Individual estimated tax

  10. Impose 2-tier system to determine

B. Provisions Affecting Businesses

   1. Increase corporate tax rate to 35%

   2. Deny deduction for certain lobbying

   3. Require mark-to-market accounting

   4. Prohibit double-dip related to

   5. Extend and modify corporate

   6. a. Repeal stock-for-debt exception

      b. Add passive activity losses and

      c. Add AMT credits to list of tax

   7. Limit section 936 credit

   8. Modify earnings stripping, portfolio

C. Foreign Tax Provisions

   1. Repeal deferral for excessive

   2. Allocate 50% of R&E expenses

   3. Revise foreign tax credit for oil

   4. Transfer pricing compliance

   5. Treatment of exports of unprocessed

D. Energy/Transportation

   1. Transportation motor fuels tax

      a. Motor fuels tax increase of

      b. Exempt commercial aviation

      c. Diesel fuel compliance

   2. Extend current 2.5 cents per gallon

E. Compliance Provisions

   1. Modified substantial understatement

   2. Information reporting for discharge

F. Intangibles

   1. Amortization of acquired intangible

G. Miscellaneous Revenue-Raising Provisions

   1. Substantiation and disclosure of

   2. Expand 45-day interest rate for

   3. Deny business travel deductions

   4. Increase withholding rate on

SUBTOTAL: REVENUE-RAISING PROVISIONS       37,982   49,480   53,757

               (Revenue-Raising Provisions continued)

_____________________________________________________________________

I. REVENUE-RAISING PROVISIONS

A. Individual Income and Estate and Gift

   1. Increase tax rates paid by high-

      (a) Add fourth bracket at 36% rate

   2. Repeal Health Insurance (HI) wage

   3. Reinstate top estate and gift tax

   4. Reduce deductible portion of

   5. Deny deduction for club dues

   6. Deny deduction for executive pay

   7. Reduce compensation that can be taken

   8. Limit deduction for moving expenses;

   9. Individual estimated tax

  10. Impose 2-tier system to determine

B. Provisions Affecting Businesses

   1. Increase corporate tax rate to 35%

   2. Deny deduction for certain lobbying

   3. Require mark-to-market accounting

   4. Prohibit double-dip related to

   5. Extend and modify corporate

   6. a. Repeal stock-for-debt exception

      b. Add passive activity losses and

      c. Add AMT credits to list of tax

   7. Limit section 936 credit

   8. Modify earnings stripping, portfolio

C. Foreign Tax Provisions

   1. Repeal deferral for excessive

   2. Allocate 50% of R&E expenses to

   3. Revise foreign tax credit for oil

   4. Transfer pricing compliance

   5. Treatment of exports of unprocessed

D. Energy/Transportation Tax Provisions

   1. Transportation motor fuels tax

      a. Motor fuels tax increase of

      b. Exempt commercial aviation

      c. Diesel fuel compliance

   2. Extend current 2.5 cents per gallon

E. Compliance Provisions

   1. Modified substantial understatement

   2. Information reporting for discharge

F. Intangibles

   1. Amortization of acquired intangible

G. Miscellaneous Revenue-Raising Provisions

   1. Substantiation and disclosure of

   2. Expand 45-day interest rate for

   3. Deny business travel deductions

   4. Increase withholding rate on

                                            __________________________

SUBTOTAL: REVENUE-RAISING PROVISIONS        64,706   62,062  267,987

                              * * * * *

Provision                                    1994     1995     1996

II. INVESTMENT AND TRAINING PROVISIONS

A. Education and Training Provisions

   1. Extend employer-provided

   2. Extend targeted jobs tax

B. Investment Incentives

   1. Extend research and experimentation

   2. Targeted capital gains incentives

   3. Elimination of ACE depreciation

   4. Increase section 179 expensing

   5. Exempt high-speed rail bonds

   6. Extend qualified small-issue

   7. Extend orphan drug tax credit

C. Expansion and Simplification of

D. Real Estate Investment Provisions

   1. Extend mortgage revenue bonds (MRBs)

   2. Extend low-income housing

   3. Provide passive loss relief for

   4. Facilitate pension investments

   5. Treatment of certain real property

   6. Increase recovery period for non-

E. Luxury Excise Tax; Diesel Fuel Tax

   1. a. Repeal luxury excise tax on

      b. Index luxury excise tax on

   2. Impose 20.1-cent-per-gallon excise

F. Other Provisions

   1. Extend AMT treatment of gifts of

   2. Extend 25% deduction for self-employed

G. Empowerment Zones and Enterprise

   1. Provide tax incentives for

SUBTOTAL: INVESTMENT AND TRAINING

           (Investment and Training Provisions continued)

Provision                                    1997     1998    1994-98

A. Education and Training Provisions

   1. Extend employer-provided

   2. Extend targeted jobs tax

B. Investment Incentives

   1. Extend research and experimentation

   2. Targeted capital gains incentives

   3. Elimination of ACE depreciation

   4. Increase section 179 expensing

   5. Exempt high-speed rail bonds

   6. Extend qualified small-issue

   7. Extend orphan drug tax credit

C. Expansion and Simplification of

D. Real Estate Investment Provisions

   1. Extend mortgage revenue bonds (MRBs)

   2. Extend low-income housing

   3. Provide passive loss relief for

   4. Facilitate pension investments

   5. Treatment of certain real property

   6. Increase recovery period for non-

E. Luxury Excise Tax; Diesel Fuel Tax

   1. a. Repeal luxury excise tax on

      b. Index luxury excise tax on

   2. Impose 20.1-cent-per-gallon excise

F. Other Provisions

   1. Extend AMT treatment of gifts of all

   2. Extend 25% deduction for self-employed

G. Empowerment Zones and Enterprise

   1. Provide tax incentives for

                                            __________________________

SUBTOTAL: INVESTMENT AND TRAINING

                              * * * * *

Provision                                    1994     1995     1996

III. OTHER REVENUE PROVISIONS

A. Disclosure Provisions

   1. Extend tax information access

   2. Access to tax information by

   3. Access to tax information by

B. Increase in Public Debt Limit

C. Vaccine Provisions

   1. Permanent extension of vaccine

   2. Excise tax for noncontinuation of

D. Other Provisions

   1. Extend Generalized System of

   2. Customs overtime reform

   3. Extension of Federal unemployment

    4. Involuntary conversion for

    5. Tax credit to certain employers

    6. Deny deduction for certain

SUBTOTAL: OTHER REVENUE PROVISIONS            -880     -167      -72

NET TOTAL                                   29,497   43,528   48,422

                (Other Revenue Provisions continued)

Provision                                    1997     1998    1994-98

III. OTHER REVENUE PROVISIONS

A. Disclosure Provisions

   1. Extend tax information access

   2. Access to tax information by

   3. Access to tax information by

B. Increase in Public Debt Limit

C. Vaccine Provisions

   1. Permanent extension of vaccine

   2. Excise tax for noncontinuation of

D. Other Provisions

   1. Extend Generalized System of

   2. Customs overtime reform

   3. Extension of Federal unemployment

    4. Involuntary conversion for

    5. Tax credit to certain employers

    6. Deny deduction for certain

SUBTOTAL: OTHER REVENUE PROVISIONS             796    1,111      788

     NOTES: Details may not add to totals due to rounding.

     Legend for "Effective" column:

          DoE = date of enactment

                              FOOTNOTES

     /1/ Taxpayer may elect to pay tax attributable to rate increase

     /2/ Estimate for this provision provided by the Congressional

     /3/ Effective 1/1/93, but no penalties for underwithholding or

     /4/ Estimate does not include an increase in outlays of $136

     /5/ With some exceptions, provision is generally effective for

     /6/ Effective at expiration of Rev. Proc. 92-56, which is

     /7/ All revenues from 4.3-cent-per-gallon tax on motor fuels

     /8/ Revenues from the 1.25-cent-per-gallon tax on railroad

     /9/ Effective date 1/1/94 for non-governmental entities.

     /10/ Taxpayer may elect to apply to intangibles acquired after

     /11/ Substantiation requirement for charitable contributions of

     /12/ FICA portion of estimate (off budget): $160 million for

     /13/ EITC outlays would be $209 million in 1994, $2,000 million

     /14/ Estimate includes the effects of (i) exempting demonstrator

     /15/ Includes revenues from extension of the 2.5-cent-per-gallon

     /16/ Effective for contributions of tangible personal property

     /17/ Estimate includes specialized small business investment

     /18/ Vaccine excise tax revenues account for a $300-million

          DISTRIBUTIONAL EFFECTS OF THE REVENUE PROVISIONS

                        (1993 Income Levels)

                                               Proposed      Burden

Less than $10,000      $9          10.4%        -$1,152       -1.28%

Total, All

                              FOOTNOTES

     /1/ The income concept used to place tax returns into income

     /2/ Includes individual income tax, FICA and SECA tax, excise

     /3/ Present-law Federal taxes as a share of expanded income.

     /4/ Includes all revenue provisions except: individual and

                          END OF FOOTNOTES