JOINT COMMITTEE ON TAXATION Februrary 9, 2021 JCX-9-21 ESTIMATED BUDGETARY EFFECTS OF THE REVENUE PROVISIONS OF THE CHAIRMAN'S AMENDMENT IN THE NATURE OF A SUBSTITUTE TO THE BUDGET RECONCILIATION LEGISLATIVE RECOMMENDATIONS, SCHEDULED FOR MARKUP BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON FEBRUARY 10, 2021    Fiscal Years 2021- 2031            [Millions of Dollars]                        ProvisionEffective202120222023202420252026202720282029203020312021-262021-31               SUBTITLE F - PRESERVING HEALTH BENEFITS FORcpo/a 4/1/21 &             WORKERS (SUNSET 9/30/21) [1][2]….............................................tyea DOE-10,223-3,146116-------------------------13,253-13,253 SUBTITLE G - PROMOTING ECONOMIC SECURITY I. Additional Recovery Rebates to Individuals - $1,400 for Singles/$2,800 for Married Filing Jointly (SSN Required for Each Taxpayer), and $1,400 Per Dependent (SSN Required for Each Dependent); Phaseout Ranges by AGI: $75,000–$100,000 for Single, $112,500–$150,000 for Head of Household, $150,000–$200,000 for Married Filing Jointly (Fully Phased Out at Larger Amounts); Payments to Certain             Non-Filers (Sunset 12/31/21)…...................................................DOE-404,937   -17,400----------------------------422,337-422,337 AI. Child Tax Credit - Improvements for 2021 (Sunset 12/31/21); and Application of Child Tax Credit in Possessions [3] …..........................................................................tyba 12/31/20-25,826-79,248-710-721-725-721-307-311-316-320-323-107,952-109,528III. Earned Income Tax Credit              1.Strengthening the earned income tax credit for individuals               with no qualifying children (sunset 12/31/21) [3].................tyba 12/31/20-521-11,361----------------------------11,882-11,8822.Taxpayer eligible for childless earned income credit               in case of qualifying children who fail to meet certain               identification requirements [3]..............................................tyba 12/31/20[4]-12-2-1-1-1-2-2-2-2-2-16-263.Credit allowed in case of certain separated spouses [3]........tyba 12/31/20-1-20-21-22-23-25-25-27-28-30-31-111-2524.Modification to disqualified investment income test [3]......tyba 12/31/20-102-652-198-200-225-229-238-233-231-240-251-1,606-2,7985.Application of earned income tax credit in possessions of               the United States [3]..............................................................DOE----738-746-764-781-798-814-831-849-867-885-3,828-8,0746.Temporary special rule for determining earned income for               purposes of earned income tax credit (sunset 12/31/20) [3].DOE----3,185----------------------------3,185-3,185Total of Earned Income Tax Credit…...........................................................................-624-15,968-967-987-1,030-1,053-1,079-1,093-1,110-1,139-1,169-20,628-26,217 Page 2  ProvisionEffective202120222023202420252026202720282029203020312021-262021-31                  IV. Dependent Care Assistance                1.Refundability and enhancement of child and dependent                 care tax credit (sunset 12/31/21) [3]......................................tyba 12/31/20-2,127-5,837--------------------- -------7,964-7,964 2.Increase in exclusion for employer-provided dependent                 care assistance (sunset 12/31/21) [5].....................................tyba 12/31/20-78-39--------------------- -------117-117 Total of Dependent Care Assistance…...........................................................................-2,205-5,876--------------------- -------8,081-8,081 V. Extension and Modification of Credits for Paid Sick                and Family Leave (sunset 9/30/21) …........................................apa 3/31/21-4,054-1,154--------------------- -------5,208-5,208 VI. Extension and Modification of the Employee Retentioncqba 6/30/21-2,791-5,993          -8,784-8,784 Credit (sunset 12/31/21) [3]….....................................................   --------------------- ------   VII. The Premium Tax Credit                1.Improving affordability by expanding premium assistance                 for consumers (sunset 12/31/22) [3][6][2]............................tyba 12/31/20-4,137-22,234-7,964-53623------------ -------34,848-34,847 2.Temporary modification of limitations on                 reconciliation of tax credits for coverage under a                 qualified health plan with advance payments of such                 credit [7]................................................................................tyba 12/31/19-4,696-1,565--------------------- -------6,261-6,261 3.Application of premium tax credit in case                 of individuals receiving unemployment compensation                 during 2021 [3][2][8]….........................................................tyba 12/31/20-2,624-1,660-232------------------ -------4,516-4,516 Total of the Premium Tax Credit ….................................................................-11,457-25,459-8,196-53623------------ -------45,625-45,624 VIII. Miscellaneous Provisions                1.Repeal of worldwide interest allocation rules.......................tyba 12/31/203351,2772,0232,2842,3832,3342,3582,3852,3432,2832,32710,63622,331 2.Tax treatment of targeted economic injury disaster loan---                advances................................................................................ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate to Be Provided By The Congressional Budget Office---------------------------- 3.Tax treatment of restaurant revitalization grants..................---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate to Be Provided By The Congressional Budget Office---------------------------- Total of Miscellaneous Provisions …...............................................................3351,2772,0232,2842,3832,3342,3582,3852,3432,2832,32710,63622,331 SUBTITLE H - PENSIONS                A.  Relief for Multiemployer Pension Plans [9].........................various- - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate To Be Provided by the Congressional Budget Office- - - - - - - - - - - - - - - - - - - - - - - - - - - - - B.Relief for Single Employer Pension Plans                1.Extended amortization for single employer plans [3][10]....pyba 12/31/183615088261,1912,3351,6782,8193,2343,4773,3463,0686,89922,841 2.Extension of pension funding stabilization percentages for                 single employer plans [3][10]...............................................pyba 12/31/19- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Estimate Included In Item B.1. Above - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3.Modification of special rules for minimum funding                 standards for community newspaper plans [3][9][11]..........pyea 12/31/17251924272831333332 3030154311  Page 3 ProvisionEffective2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-262021-31                                           C.  Reconciliation Offsets - Cost of Living Adjustment Freeze…cyba 12/31/30--- --- --- --- --- --- --- -34 -119 -247 421 --- 21  Total of Subtitle H - Pensions ….............................................................................386 5278501,2182,363 1,709 2,852 3,233 3,390 3,129 3,519 7,053 23,173                          NET TOTAL ………………………………………………………………………………… -461,396  -152,440-6,884 1,258 3,014 2,269 3,824 4,214 4,307 3,953 4,354 -614,179 -593,528                                            Joint Committee on Taxation                                         --------------------------------------                                         NOTE: Details may not add to totals due to rounding. The date of enactment is assumed to be March 1, 2021. Revenue provisions as submitted in statutory language Neal_008, Neal_009 and Neal_010.          Legend for "Effective" column:                                         apa = amounts paid after cyba = calendar years beginning after            pyea = plan years ending after       cpo/a = coverage period on or after DOE = date of enactment               tyba = taxable years beginning after    cqba = calendar quarters beginning after pyba = plan years beginning after               tyea = taxable years ending after       [1] Estimate includes the following budget effects:  2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31  Total Revenue Effect.........................................................................................................                                          .-10,223 -3,146116--------- --- --- --- --- --- -13,253 -13,253  On-budget effects............................................................................................................-10,227 -3,114129--------- --- --- --- --- --- -13,212 -13,212  Off-budget effects............................................................................................................4 -32 -13--- --- --- --- --- --- --- --- -41 -41  [2] Estimate provided by the Joint Committee on Taxation staff in collaboration with the Congressional Budget Office.                               [3] Estimates contain the following outlay effects: 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31                                           Preserving health benefits for workers ….......................................................................... -605  -374  -74  ------------ --- --- --- --- -1,053-1,053 Child tax credit - improvements for 2021 (sunset 12/31/21); and application of                                        child tax credit in possessions…….................................................. 18,169 66,185 710 721 725 721 307 311 316 320 323 87,232 88,808  Strengthening the earned income tax credit for individuals with no qualifying                                        children (sunset 12/31/21)...............................................................................................--- 9,278 --- --- --- --- --- --- --- --- --- 9,278 9,278 Taxpayer eligible for childless earned income credit in case of qualifying children                                        who fail to meet certain identification requirements.......................................................--- 11 2 1 1 1 2 2 2 2 21626 Improving affordability by expanding premium assistance for consumers…...................2,72514,3065,203450--------------------- 22,68422,684 Extension and modification of the employee retention credit …......................................1,090878--------------------- --- --- 1,968 1,968  Application of premium tax credit in case of individuals receiving unemployment                                        compensation during 2020…........................................................................................1,351 926149------ --- --- --- --- --- --- 2,4262,426 Credit allowed in case of certain separated spouses..........................................................--- 1818192021212223242496210 Modification to disqualified investment income test….....................................................--- 2351411431651641621591591651738471,665 Application of earned income tax credit in possessions of United States.........................--- 738 746 764 781 798 814 831 849 867 885 3,828 8,074  Temporary special rule for determining earned income for purposes of earned                                        income tax credit …........................................................................................................--- 2,866--- --- --- --- --- --- --- --- --- 2,866 2,866 Refundability and enhancement of child and dependent care tax credit                                        (sunset 12/31/21) …........................................................................................................--- 3,752 --- --- --- --- --- --- --- --- --- 3,752 3,752 Modification of special rules for minimum funding standards for community                                        newspaper plans [12]…................................................................................................-7 -7 -11 -15 -18 -21 -24 -27 -30 -32 -35 -79 -227  Extended amortization for single employer plans….........................................................-107 -144 -232 -353 -1,124 -93 -917 -1,156 -1,419 -1,643 -1,819 -2,053 -9,007      [Footnotes for JCX-9-21 continued on following page] Page 4       Footnotes continued for JCX-9-21: [4]Loss of less than $500,000.                                     [5]Estimate includes the following budget effects:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31 Total Revenue Effect.......................................................................................................... -78  -39  ---  ---  ---  ---  ---  ---  ---  ---  --- -117 -117 On-budget effects............................................................................................................-27 -14--- --- --- --- --- --- --- --- --- -41 -41 Off-budget effects............................................................................................................-51 -25--- --- --- --- --- --- --- --- --- -76 -76[6]Estimate includes the following budget effects: 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31                                       Total Revenue Effect..........................................................................................................-4,137-22,345-7,964-53623--------------- --- -34,959-34,959 On-budget effects............................................................................................................-4,144-22,421------------ --- --- --- --- --- -26,565 -26,565 Off-budget effects............................................................................................................7 76 5210------ --- --- --- --- --- 145145[7]The statute applies in the case of any taxable year beginning in 2020, so the sunset only applies to tax year 2020.                              [8]Estimate includes the following budget effects: 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31                                       Total Revenue Effect..........................................................................................................-2,624-1,660-232      ------ --- --- --- --- -4,516 -4,516 On-budget effects............................................................................................................-2,731-2,586-381------------ --- --- --- --- -5,698 -5,698 Off-budget effects............................................................................................................107 926149   ------ --- --- --- --- --- 1,182 1,182[9]Estimate provided by the Congressional Budget Office.                                     [10]Estimate includes the following budget and outlay effects:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31                                       Total Revenue Effect.......................................................................................................... 361  508  826 1,191 2,335 1,678 2,819 3,234 3,477 3,346 3,068 6,899 22,842 On-budget effects............................................................................................................2293124996899731,2721,5221,6441,6111,3299753,97311,055 Off-budget effects............................................................................................................25 53 95 150 238 312 380 434 447 374 2738732,781[11]Estimate includes the following budget and outlay effects:2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-26 2021-31 Total Revenue Effect.......................................................................................................... 25  19  24  27  28  31  33  33  32  30  30 154 311 On-budget effects............................................................................................................16101198864[13]-3-56163 Off-budget effects............................................................................................................2 2 3 3 3 3 3 2 1 1 [13] 1421 [12] Outlay effects provided by the Congressional Budget Office. For estimates under Subtitle H, items 2.B.1., 2 B.2 and 2.B.3, spending is decreased (negative) as premiums rise due to higher plan underfunding; this has the same effect on the deficit as an increase in revenues.[13] Gain of less than $500,000.

JCT Estimates Impact of Pandemic Relief Package Substitute

JCT Estimates Impact of Pandemic Relief Package Substitute

U.S. Joint Committee on Taxation

A substitute amendment to the budget reconciliation package with coronavirus relief provisions, scheduled for markup by the House Ways and Means Committee, would cost $593.5 billion from 2021-2031, according to February 9 estimates (JCX-9-21) by the Joint Committee on Taxation.

A substitute amendment to the budget reconciliation package with coronavirus relief provisions, scheduled for markup by the House Ways and Means Committee, would cost $593.5 billion from 2021-2031, according to February 9 estimates (JCX-9-21) by the Joint Committee on Taxation.

A substitute amendment to the budget reconciliation package with <a href="/lr/resolve//2r4l1">coronavirus relief provisions</a>, scheduled for markup by the House Ways and Means Committee, would cost $593.5 billion from 2021-2031, according to February 9 estimates (JCX-9-21) by the Joint Committee on Taxation. Among the costliest provisions is an additional round of recovery payments of $1,400 to individuals, which would cost $422.3 billion from 2021 to 2031, and an expanded child tax credit, which would cost $109.5 billion over the same time period. Modifications to the earned income tax credit would cost $26.2 billion, slightly higher than the JCT’s previous <a href="/lr/resolve//2r4l7">estimate</a>. Also, expanding the premium tax credit eligibility would cost $45.6 billion, according to the report.

A substitute amendment to the budget reconciliation package with coronavirus relief provisions, scheduled for markup by the House Ways and Means Committee, would cost $593.5 billion from 2021-2031, according to February 9 estimates (JCX-9-21) by the Joint Committee on Taxation. Among the costliest provisions is an additional round of recovery payments of $1,400 to individuals, which would cost $422.3 billion from 2021 to 2031, and an expanded child tax credit, which would cost $109.5 billion over the same time period. Modifications to the earned income tax credit would cost $26.2 billion, slightly higher than the JCT’s previous estimate. Also, expanding the premium tax credit eligibility would cost $45.6 billion, according to the report.