"HEROES Act" is the average annual cost of the Health and Economic Recovery Omnibus Emergency Solutions Act (H.R.6800), which would provide further aid in response to the COVID pandemic and economic crisis, including aid to state and local governments, extended and expanded unemployment benefits, and additional $1,200 rebates per person.
"INVEST in America Act" is the average annual cost of the Investing in a New Vision for the Environment and Surface Transportation in America Act (H.R.2), which would reauthorize surface transportation programs for five years and provide for other infrastructure improvements.
"Great American Outdoors Act" is the average annual cost of legislation (S.3422) to establish a fund to support deferred maintenance projects on federal lands.
"Suspend the Payroll Tax for One Year" is the cost of suspending collection of the payroll tax for one year.
“Payroll Tax Cut of 2 Percentage Points” is the average annual cost of cutting the employee-side Social Security payroll tax by 2 percentage points for two years.
“Extend the Tax Cuts and Jobs Act” is the average annual cost of the permanent extension of the individual and estate tax provisions as assumed in President Trump's FY 2021 budget.
“Border Wall Requested Funding for 2020” is based on President Trump’s request to Congress for funding construction of a wall on the southern border in his fiscal year 2020 budget.
"Space Force" is the $15.4 billion request to fund the Space Force in the President's FY 2021 budget proposal.
“Index Capital Gains Tax to Inflation” is the average annual cost of indexing the capital gains tax to inflation. Based on an estimate from the Penn Wharton Budget Model.
“Repeal Estate Tax” is the average annual cost of eliminating the tax on inherited estates.
"Biden Health Care Plan" is the average annual cost of the health care plan from the campaign of former Vice President Joe Biden based on the estimate from the Committee for a Responsible Federal Budget.
"Biden Climate Plan" is the average annual cost of the climate plan from the campaign of former Vice President Joe Biden based on a campaign estimate.
"Biden Housing Plan" is the average annual cost of the housing plan from the campaign of former Vice President Joe Biden based on a campaign estimate.
"Biden Infrastructure Plan" is the average annual cost of the infrastructure plan from the campaign of former Vice President Joe Biden based on a campaign estimate. Of the $640 billion, $300 billion of it is also part of Vice President Biden’s housing plan.
"Biden Preschool and K-12 Plan" is the average annual cost of the preschool and K-12 grade plan from the campaign of former Vice President Joe Biden based on an estimate from the Committee for a Responsible Federal Budget.
"Biden Post-Secondary Education Plan" is the average annual cost of the post-secondary education plan from the campaign of former Vice President Joe Biden based on a campaign estimate.
"Paid Family and Medical Leave" is the average annual cost of a proposal from Senator Kirsten Gillibrand (D-NY) to provide every worker with 12 weeks of annual paid family and medical leave at 66 percent of their monthly wages, capped at $4,000 per month.
"Universal Basic Income" is the average annual cost of providing every American 18 years or older with a monthly check for $1,000 proposed by Andrew Yang. Those currently receiving means-tested benefits could choose instead to keep their current benefits.
“LIFT the Middle Class Act” is the average annual cost of legislation (S.4) introduced in the U.S. Senate by Senator Kamala Harris (D-CA), which would provide a refundable tax credit up to $6,000 a year to families earning less than $100,000 annually.
"Green New Deal" is the annual average of the high and low estimates from the American Action Forum's (AAF) interpretation of the Green New Deal resolution introduced in the House of Representatives by Representative Alexandria Ocasio-Cortez (D-NY). This figure includes the universal health care portion of the proposal.
“Increase Social Security Benefits by 5 Percent” is the average annual cost of increasing benefits for all Social Security recipients by 5 percent.
"House Infrastructure Spending Plan" is the average annual cost of the $760 billion, five-year infrastructure plan proposed by Democratic leaders in the House of Representatives in January 2020.
“Pension Reform” is based on the average annual cost of the Butch Lewis Act of 2017, sponsored by Senator Sherrod Brown (D-OH), which would make loans to underfunded pension plans.
“Tax Cuts and Jobs Act” is the average annual cost of the tax cuts passed in 2017.
“Bipartisan Budget Act of 2019” is the average annual cost of the Bipartisan Budget Act of 2019, which repealed the “sequestration” spending cuts.
"2019 End of Year Tax Cut Deal" is the average annual cost of a package added to legislation funding the federal government for the rest of fiscal year 2020 that includes repeal of the "Cadillac tax" on high-cost health insurance plans, the tax on health insurers, and the medical device tax, as well as renewal of several tax breaks known as "tax extenders."
"FY 2020 Spending Bill" is the amount appropriated for fiscal year 2020 discretionary spending by legislation enacted in December 2019.
“Defense and Military Benefits” is budget function 050, which includes the military activities of the Department of Defense, the nuclear weapons-related activities of the Department of Energy, and the national security activities of several other agencies, and budget function 700, which covers benefits and services for veterans.
“Foreign Aid and International Programs” is budget function 150, which includes providing military assistance to allies; aiding developing nations; and providing economic assistance to fledgling democracies through agencies such as the Department of State; the United States Agency for International Development; the Peace Corps; and the Millennium Challenge Corporation.
“Energy” is federal budget function 270. It includes civilian energy and environmental programs in the Department of Energy, the Rural Utilities Service of the Department of Agriculture, the Tennessee Valley Authority, and the Nuclear Regulatory Commission.
“Farm Subsidies” covers spending in the form of payments and other kinds of support extended by the U.S. federal government to certain farmers and agricultural businesses.
“Education” is what the federal government spends on elementary, secondary, vocational, and higher education, much of it through the Department of Education.
“Transportation” is federal budget function 400. It consists of programs that support and oversee various modes of transportation, including highways, mass transit, rail, air, and maritime transportation.
“Administration of Justice” is federal budget function 750. It involves programs that provide federal law enforcement, litigation and judicial services, federal correctional operations, and state and local criminal justice assistance. The Federal Bureau of Investigation, the Drug Enforcement Administration, and the Federal Bureau of Prisons are some of the agencies within this function.
“Tax Expenditures” is the broad name given to the more than 200 credits, deductions, exclusions, and other tax breaks. They represent a break from a “clean” tax code and are often intended to benefit groups of taxpayers and incentivize specific activities.
The “Exclusion for Employer-Paid Health Insurance Programs” makes health insurance premiums paid by employers and the portion paid by employees exempt from federal income and payroll taxes.
“Reduced Tax Rates on Capital Gains and Dividends” reduces the taxes paid by investors on profits made from assets, like stocks, land, buildings, or art, that they have held for longer than a year. The tax rates on capital gains are 0%, 15%, and 20%—as opposed to taxes on most other income, which range from 10% to 37%.
“Preferential Tax Treatment of 401(k)s” reduces taxes on employees’ 401(k) accounts. The income is taxed once—either when placed in the account, as with Roth accounts, or when it is withdrawn, as in traditional 401(k)s.
The “Child Tax Credit” can be claimed for each child under the age of 17 and has a value of up to $2,000. If the credit is larger than taxes owed, the taxpayer can receive a refund of up to $1,400. This credit is gradually reduced as the income of a household increases over $200,000 for singles or $400,000 for couples.
“Preferential Tax Treatment of Defined Benefit Pensions” applies to qualified employer-sponsored retirement plans. Similar to 401(k)s, contributions to defined benefit plans are not taxed as income until the employee receives payouts, which can be decades later.
“Reduced Tax Rates on Foreign-Earned Multinational Business Income” decrease the rate at which income earned by US-based companies in foreign countries is taxed. Companies will typically pay taxes to the country where the income is earned, and not the United States, unless the other country imposes very low tax rates.
The “Earned Income Tax Credit” is paid out to working families with low to moderate incomes. A family with more children receives a larger credit. The Earned Income Tax Credit is listed as both a spending program and a tax break. The portion that is given as refunds is classified as spending, while the tax break number is larger because it includes both the refund portion and the portion that reduces the amount of tax individuals owe.
“Accelerated Write-Offs for Business Equipment” allow businesses to deduct the price of capital assets (i.e. equipment, machinery, or business property) more quickly than those assets wear out.
The “Charitable Deduction” allows contributions to charitable organizations to be deducted from an individual’s tax liability, regardless of whether donations are as cash or goods. Such deductions can total up to 50 percent of their adjusted gross income and donated goods must be deducted at their "fair market value.”
The “State and Local Tax Deduction” allows taxpayers to deduct state and local tax payments on their federal tax returns. The 2017 tax law imposed a cap of $10,000 on such deductions.
The “Exclusion of Cafeteria Plan Benefits” allows workers to use pre-tax pay towards fringe benefits, thus reducing their tax liability. In order to qualify for a cafeteria plan, the employer must offer employees a choice between different compensation packages—which commonly include plans that pay for the employee’s share of health care premiums, supplemental coverage like dental and vision, and dependent care costs like child care or day care.
The “Exclusion of Social Security Benefits” exempts the Social Security benefits of individuals with income below $25,000 or couples below $32,000 from being taxed. Above these thresholds, benefits are partially taxed.
The “Exclusion of Capital Gains at Death” allows capital gains on assets held at their owner’s death to be tax-free. For example, assume that a stock is originally purchased at $10/share, its owner dies when the stock is valued at $50/share, and the heir sells it for $60/share. The heir will only owe taxes on the gain from $50 to $60. The gain from $10 to $50 will be untaxed.
The “Exclusion of Gains for Home Sales” allows the first $250,000 of profit from the sale of a taxpayer’s main home to be tax-free ($500,000 for couples).
The “Mortgage Interest Deduction” allows homeowners to deduct the interest paid on the mortgage of their first home. This deduction is capped at $750,000 of debt.
The “Pass-Through Deduction” enables taxpayers to deduct 20% of their self-employed or business income, excluding some occupations at higher-income limits.
The “Exclusion for Municipal Bonds” allows the interest earned from municipal bonds to be tax-free.
“Tax Benefits for IRAs” reduce taxes on individual retirement accounts (IRAs). Depending on the type of account, either initial contributions are tax-free or the income is tax-free when it is ultimately withdrawn.
The “Exclusion of Life Insurance Benefits” exempts life insurance payouts from being subject to federal income taxes.
“Health Cost Deductions” allow taxpayers to deduct large medical expenses, the self-employed to deduct their health-insurance premiums, and certain taxpayers to maintain tax-preferred health savings accounts.
“Expensing for Small Businesses” allows firms with average annual gross revenues of less than $25 million to deduct certain capital expenses in the year the asset is purchased, rather than taking the deduction over the life of the asset.
The “Higher Education Tax Credit” is a combination of two credits of up to $2,000 each given for undergraduate, graduate, or professional students.
The “Research and Experimentation Credit” is available to eligible businesses who conduct R&D. The credit is equal to a percentage of a business’ qualified research expenses above a base amount, encouraging research spending.
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