H.R. 88 Would Cost $54.1 Billion, JCT Says

U.S. Joint Committee on Taxation

Revenue provisions of the House amendment to the Senate amendment to H.R. 88 would reduce revenues by $54.1 billion from 2019 to 2028, according to estimates released by the Joint Committee on Taxation on November 29.

Revenue provisions of the House amendment to the Senate amendment to H.R. 88 would reduce revenues by $54.1 billion from 2019 to 2028, according to estimates released by the Joint Committee on Taxation on November 29.

Revenue provisions of the House amendment to the Senate amendment to <a href="/lr/resolve/source-document/28mnx" title="Source document">H.R. 88</a> would reduce revenues by $54.1 billion from 2019 to 2028, according to estimates (JCX-82-18) released by the Joint Committee on Taxation on November 29. Division A of the bill, the Retirement, Savings, and Other Tax Relief Act of 2018, would cost $53.9 billion in total. Division B, the Taxpayer First Act of 2018, covering various taxpayer service and IRS reform measures, would cost $208 million. Extensions of expiring provisions would cost $29.9 billion. Among those provisions, extending biodiesel and renewable diesel incentives would cost $16.9 billion, extending alternative fuel excise tax credits would cost $7.1 billion, and extending the gross income exclusion for the discharge of home mortgage indebtedness would cost $1.4 billion. Disaster tax relief would cost $3.8 billion, with the most costly provision being the special rules for disaster-related personal casualty losses, which would cost $2.7 billion. Savings incentives would cost $13.5 billion. A provision concerning multiple employer plans and pooled employer plans would cost $3.7 billion, and an exemption from required minimum distribution rules for individuals with specific account balances would cost $6.2 billion. Provisions intended to encourage innovation would cost $4.9 billion, including $2.5 billion for simplifying and expanding the start-up expenses deduction and $2.4 billion for preserving start-up net operating losses and tax credits following an ownership change. Tax technical corrections and clarifications would cost $31 million, and repealing an increase in unrelated business taxable income would cost $1.8 billion.

Revenue provisions of the House amendment to the Senate amendment to H.R. 88 would reduce revenues by $54.1 billion from 2019 to 2028, according to estimates (JCX-82-18) released by the Joint Committee on Taxation on November 29. Division A of the bill, the Retirement, Savings, and Other Tax Relief Act of 2018, would cost $53.9 billion in total. Division B, the Taxpayer First Act of 2018, covering various taxpayer service and IRS reform measures, would cost $208 million. Extensions of expiring provisions would cost $29.9 billion. Among those provisions, extending biodiesel and renewable diesel incentives would cost $16.9 billion, extending alternative fuel excise tax credits would cost $7.1 billion, and extending the gross income exclusion for the discharge of home mortgage indebtedness would cost $1.4 billion. Disaster tax relief would cost $3.8 billion, with the most costly provision being the special rules for disaster-related personal casualty losses, which would cost $2.7 billion. Savings incentives would cost $13.5 billion. A provision concerning multiple employer plans and pooled employer plans would cost $3.7 billion, and an exemption from required minimum distribution rules for individuals with specific account balances would cost $6.2 billion. Provisions intended to encourage innovation would cost $4.9 billion, including $2.5 billion for simplifying and expanding the start-up expenses deduction and $2.4 billion for preserving start-up net operating losses and tax credits following an ownership change. Tax technical corrections and clarifications would cost $31 million, and repealing an increase in unrelated business taxable income would cost $1.8 billion.