COVID-19 Bill Tax Changes Would Cost $591B, JCT Says

Revenue provisions in legislation intended to alleviate the economic fallout of the novel coronavirus pandemic would cost the federal government around $591 billion over a decade, the congressional Joint Committee on Taxation said in estimates published Thursday.

The revenue provisions contained in the Coronavirus Aid, Relief and Economic Security Act, or H.R. 748, such as rebates for individuals and delayed payroll tax payments, would cost the government $591 billion from 2020 through 2030, according to the JCT score. The legislation would make the biggest dent in government revenues in the first two years of implementation, costing roughly $960 billion in 2020 and 2021 alone, the JCT found.

Those losses would be offset somewhat when delayed taxes are recouped later, according to the estimate. Planned $1,200 rebates for individuals and $2,400 for married couples filing jointly, plus $500 for each qualifying child, would be the priciest provision of the bill, costing nearly $292.4 billion over the provision's two effective years, the JCT said.

Senate lawmakers approved the bill 96-0 late Wednesday night, a third measure from Congress intended to inject $2 trillion into the economy to help families and businesses stay afloat amid the COVID-19 pandemic's economic fallout. It's scheduled for a vote Friday in the U.S. House of Representatives.

--Additional reporting by Stephen Cooper, Dylan Moroses and Andrew Kragie. Editing by Robert Rudinger.

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