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JCT Revises Virus Bill's Tax Provision Costs Down To $593B

By Theresa Schliep · 2021-02-16 16:59:39 -0500

The Joint Committee on Taxation decreased cost estimates for tax provisions of new virus relief legislation, finding that the version approved by the House Ways and Means Committee would cost $593 billion, a decrease from an earlier estimate. 

The tax provisions of President Joe Biden's $1.9 trillion pandemic relief legislation known as the American Rescue Plan would cost $593.1 billion, according to a JCT estimate released Monday. That is a decrease of roughly $400 million from an earlier estimate by the committee of $593.5 billion and results from decreases in the costs of certain provisions in the plan, including expansion of the earned income tax credit.

The House Ways and Means Committee approved the tax provisions of the legislation Thursday, by a 24-18 vote, and sent the proposal to the House Budget Committee. The American Rescue Plan includes another round of direct payments to individuals and increases in the child tax credit.

--Additional reporting by Stephen Cooper and Dylan Moroses. Editing by Neil Cohen.

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