The legislation would extend reduced tariff rates imposed on products imported under the African Growth and Opportunity Act, the Generalized System of Preferences, and the Haitian Hemispheric Opportunity through Partnership Encouragement Act. The bill also would shift some corporate income tax payments between fiscal years, expand the account information that financial institutions and others are required to report to the Internal Revenue Service, and increase the rate of certain fees collected by Customs and Border Protection as well as extend the authority to collect those fees.
CBO and the staff of the Joint Committee on Taxation (JCT) estimate that enacting the bill would reduce direct spending by $5.9 billion and reduce revenues by about $5.8 billion over the 2015-2025 period—resulting in a decrease in deficits over the 11-year period of $81 million. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. CBO estimates that the Congressional reports called for under the bill would cost $1 million over the 2015-2020 period, assuming availability of appropriated funds.
CBO has determined that the nontax provisions of the bill contain no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the budgets of state, local, or tribal governments. JCT has determined that the tax provisions of the bill contain no intergovernmental mandates.
CBO has determined that the nontax provisions of the legislation contain private-sector mandates on entities required to pay merchandise processing fees. CBO estimates the aggregate cost of the mandates would exceed the annual threshold established in UMRA for private-sector mandates ($154 million in 2015, adjusted annually for inflation). JCT has determined that the tax provisions of the bill contain no private-sector mandates.
Correction: Reposted May 11, 2015, to revise the cost estimate that CBO provided for the legislation on May 6, 2015, because it did not include the budgetary effects of subsequent technical and conforming amendments provided to CBO on May 8, 2015.