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JCT Estimates Revenue Effects of HEART Act

MAY 20, 2008

JCX-45-08

DATED MAY 20, 2008
DOCUMENT ATTRIBUTES
Citations: JCX-45-08

 JOINT COMMITTEE ON TAXATION

 

                             May 20, 2008

 

                               JCX-45-08

 

 

                ESTIMATED BUDGET EFFECTS OF H.R. 6081,

 

     THE "HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008,"

 

              SCHEDULED FOR CONSIDERATION BY THE HOUSE OF

 

                    REPRESENTATIVES ON MAY 20, 2008

 

 

                       Fiscal Years 2008 - 2018

 

 

                         [Millions of Dollars]

 

 

 Provision                                              Effective

 

 

 I. Benefits for the Military

 

 

 1. Allow taxpayers who file a joint return, and

 

 one of whom is in the armed forces

 

 to be eligible for the recovery rebates as

 

 enacted in the Economic Stimulus Act of 2008              1

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

  --   -14   --   --   --   --   --   --   --   --   --     -14     -14

 

 

 2. Permanently extend the election to include

 

 combat pay as earned income                           tyea 12/31/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --  -20  -18  -11   -3   -3   -3   -3   -3   -3   -3     -55     -70

 

 

 3. Special mortgage bonds rules for veterans:

 

 

 a. Permanently extend the qualified mortgage

 

 bond first-time homebuyer exception for

 

 veterans                                              bia 12/31/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   -2  -10  -25  -41  -57  -73  -88 -102 -115 -126  -135   -208    -776

 

 

 b. Increase the veterans mortgage bond volume

 

 limitation for certain states and modify the

 

 definition of a qualified veteran                     bia 12/31/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   -1   -6  -14  -21  -27  -33  -40  -46  -52  -58  -64    -102    -362

 

 

 4. Survivor and disability payments with respect

 

 to qualified military service                          dodoo/a 1/1/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2    2    2    2    2    2    2    2    2      -1      -2

 

 

 5. Treatment of differential military pay as           rpa 12/31/08 &

 

 wages                                                   yba 12/31/08

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --    1   -2   -1   -1   -1   -1   -1   -1   -1   -1      -3      -7

 

 

 6. Special period of limitation when uniformed

 

 services retired pay is reduced as a result of

 

 award of disability compensation                        cfcorfa DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2   -2   -1   -1   -1   -1   -1   -1   -1   -1   -1      -5     -10

 

 

 7. Permanently extend treatment of distributions

 

 to guardsmen called to active duty                       12/31/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2   -1   -1   -1   -1   -1   -1   -1   -1      -3      -7

 

 

 8. Permanent extension of disclosure authority

 

 to the Department of Veterans Affairs 3                10/01/08

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

  - - - - - - - - - - - - - No Revenue Effect  - - - - - - - - - - - -

 

 

 9. Contributions of military death gratuities to

 

 Roth IRAs or educational savings accounts                 4

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2    2    2    2    2    2    2    2   -1      -2      -4

 

 

 10. Suspension of 5-year period during service

 

 with the Peace Corps                                  tyba 12/31/07

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2    2    2    2    2    2    2    2    2       2      -1

 

 

 11. Employer wage credit for activated military

 

 reservists (20% of differential pay up to

 

 $20,000; employers with less than 50                    apa DOE &

 

 employees) (sunset 12/31/09)                          before 1/1/10

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2   -1   -2   -2   -2   -1    2    2    2    2    2      -8      -9

 

 

 12. Exclusion of certain State payments to military

 

 personnel                                              pmbo/a DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

  - - - - - - - - - - - Negligible Revenue Effect  - - - - - - - - - -

 

 

 13. Permanent exclusion of gain on sale of a

 

 principal residence by certain employees of the        soproo/a DOE &

 

 intelligence community                                soproo/a 12/31/10

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2    2    2    2    2    2    2    2    2      -1      -3

 

 

 14. Special distribution rules for unused benefits in

 

 health flexible spending arrangements of

 

 individuals called to active duty                        dma DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

  - - - - - - - - - - - Negligible Revenue Effect  - - - - - - - - - -

 

 

 15. Clarification related to exclusion of certain

 

 property tax rebates and other benefits

 

 provided to volunteer firefighters and

 

 emergency medical responders 5                          6

 

 

   - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - -

 

 

 Total of Benefits for the Military

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   -3  -52  -62  -78  -92 -113 -134 -154 -173 -190 -206    -402  -1,265

 

 

 II. Improvements in Supplemental Security Income

 

 

 1. Treatment of uniformed service cash

 

 remuneration as earned income 7                     bpfmb 60da DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --   -1   -2   -3   -2   -3   -3   -3   -3   -3   -3     -11     -26

 

 

 2. State annuities for blind veterans to be

 

 disregarded in determining supplemental

 

 security income benefits 7                          bpfmb 60da DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --    2    2    2    2    2    2    2    2    2    2       2      -1

 

 

 3. Exclusion of Americorps benefits for purposes

 

 of determining supplemental security income

 

 eligibility and benefit amounts volunteers under

 

 SSI 7                                                   DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --    2   -1   -1   -1   -1   -1   -1   -1   -1   -1      -4      -9

 

 

 Total of Improvements in Supplemental Security Income

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --   -1   -3   -4   -3   -4   -4   -4   -4   -4   -4     -15     -36

 

 

 III. Provisions that Raise Revenue

 

 

 1. Impose mark-to-market regime (but not 10-year

 

 income inclusion rules) on individuals who

 

 expatriate                                                8

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   10   56   52   48   44   39   34   29   31   33   35     249     411

 

 

 2. Impose employment tax for wages paid for

 

 services performed by employees of foreign

 

 subsidiaries of U.S. parent companies under             spicmbmt

 

 U.S. government contract 9                            30da DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   11   76   80   81   82   83   84   84   86   86   86     412     838

 

 

 3. Increase in penalty for failure to file

 

 from $100 to $135                                     rrtbfa 12/31/08

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --    2    9    9    9    9    9    9    9    9    9      37      83

 

 

 Total of Provisions that Raise Revenue

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   21  134  141  138  135  131  127  122  126  128  130     698   1,332

 

 

 IV. Parity in the Application of Certain Limits to

 

 Mental Health Benefits (sunset 12/31/08) 3             bfsfo/a DOE

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   --  -15  -10   --   --   --   --   --   --   --   --     -25     -25

 

 

 NET TOTAL

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

   18   66   66   56   40   14  -11  -36  -51  -66  -80     256      6

 

 

 Joint Committee on Taxation

 

 

 ---------------------------

 

 

 NOTE: Details may not add to totals due to rounding. Date of

 

 enactment assumed to be June 1, 2008.

 

 

 Legend for "Effective" column:

 

 

      bpfmb = benefits payable for months beginning

 

      tyba = taxable years beginning after

 

      bfsfo/a = benefits for services furnished on or after

 

      tyea = taxable years ending after

 

      bia = bonds issued after

 

      cfcorfa = claims for credit or refund filed after

 

      dma = distributions made after

 

      dodoo/a = deaths or disabilities occurring on or after

 

      DOE = date of enactment

 

      pmbo/a = payments made before, on or after

 

      rpa = remuneration paid after

 

      rrtbfa = returns required to be filed after

 

      soproo/a = sales of personal residences occurring on or after

 

      spicmbmt = services performed in calendar months beginning more than

 

      tyba = taxable years beginning after

 

      tyea - taxable years ending after

 

      yba = years beginning after

 

      30da = 30 days after

 

      60da = 60 days after

 

 

                         FOOTNOTES TO JCX-45-08

 

 

      1 Effective as if included in the Economic Stimulus

 

 Act of 2008.

 

 

      2 Loss of less than $500,000.

 

 

      3 Estimate provided by the Congressional Budget Office.

 

 

      4 Generally effective with respect to deaths from

 

 injuries occurring on or after the date of enactment and deaths from

 

 injuries occurring on or after October 7, 2001, and before the date

 

 of enactment if such contribution is made not later than one year

 

 after the date of enactment.

 

 

      5 Preliminary and subject to change.

 

 

      6 Effective as if included in section 5 of the

 

 Mortgage Forgiveness Debt Relief Act of 2007.

 

 

      7 Outlay effects provided by the Congressional Budget

 

 Office and should be considered preliminary and subject to change.

 

 Negative numbers indicate an increase in outlays.

 

 

      8 Generally effective for expatriations on or after the

 

 date of enactment. The tax on covered gifts and bequests is

 

 effective for gifts and bequests received on or after the date of

 

 enactment from expatriates whose expatriation date is on or after the

 

 date of enactment.

 

 

      9 Estimate includes an increase in outlays provided by

 

 the Congressional Budget Office

 

 

 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008-13 2008-18

 

 ______________________________________________________________________

 

 

    2    2    2    2    1    1    1    2    2    3    4       2      14

 

 

                     END OF FOOTNOTES TO JCX-45-08
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