H.R. 88 would make a variety of changes to the tax code. Division A of the bill would extend many tax provisions that expired at the end of 2017 and provide tax relief for victims of disasters. The bill would also modify the requirements for tax-favored savings accounts and employer-provided retirement plans, change the deduction for start-up and organizational expenditures, make technical corrections to Public Law 115-97, and eliminate the increase in unrelated business taxable income related to certain transportation fringe benefits. Division B of the bill would make numerous changes to rules governing the Internal Revenue Service (IRS).
The staff of the Joint Committee on Taxation (JCT) and CBO estimate that enacting the bill would reduce revenues by about $52.7 billion over the 2019-2028 period, and increase outlays by $1.4 billion over the same period, leading to an increase in the deficit of $54.1 billion over the 2019-2028 period. A portion of the changes in revenues would be from Social Security payroll taxes, which are classified as off-budget. Excluding the estimated $0.3 billion decrease in off-budget revenues over the next 10 years, JCT and CBO estimate that H.R. 88 would increase on-budget deficits by about $53.7 billion over the 2019-2028 period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues.
CBO and JCT estimate that enacting H.R. 88 would increase on-budget deficits by more than $5 billion in at least one of the four 10-year periods beginning in 2029. CBO and JCT estimate that enacting the legislation would not increase net direct spending by more than $5 billion in any of the four consecutive 10-year periods beginning in 2029.
The staff of the Joint Committee on Taxation has determined that the tax provisions of H.R. 88 contain no intergovernmental or private sector mandates as defined in Unfunded Mandates Reform Act (UMRA).
CBO has determined that the nontax provisions of H.R. 88 contain no intergovernmental mandates, but would impose a private-sector mandate as defined in UMRA. CBO estimates the cost of the mandates would fall below the annual private-sector thresholds established by UMRA ($160 million in 2018, adjusted annually for inflation).