[Senate Report 114-44]
[From the U.S. Government Publishing Office]
Calendar No. 75
114th Congress } { Report
SENATE
1st Session } { 114-44
======================================================================
AN ORIGINAL BILL TO EXTEND THE TRADE ADJUSTMENT ASSISTANCE PROGRAM, AND
FOR OTHER PURPOSES
_______
May 12, 2015.--Ordered to be printed
_______
Mr. Hatch, from the Committee on Finance,
submitted the following
R E P O R T
[To accompany S. 1268]
Including cost estimate of the Congressional Budget Office
The Committee on Finance, having considered an original
bill (S. 1268) to extend the trade adjustment assistance
program, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
I. REPORT AND OTHER MATERIALS OF THE COMMITTEE.......................2
A. Report of the Committee on Finance.................... 2
B. Summary of Congressional Consideration of the Bill.... 2
1. Background........................................ 2
2. Committee Consideration........................... 2
C. Trade Adjustment Assistance Programs.................. 2
1. Trade Adjustment Assistance for Workers........... 2
2. Trade Adjustment Assistance for Firms and Farmers. 3
D. General Description of the Bill....................... 4
TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE
PROGRAM.......................................... 4
II. BUDGETARY IMPACT OF THE BILL......................................9
III.VOTES OF THE COMMITTEE...........................................20
IV. REGULATORY IMPACT OF THE BILL....................................21
V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............22
I. REPORT AND OTHER MATERIALS OF THE COMMITTEE
A. Report of the Committee on Finance
The Committee on Finance, having considered an original
bill (S.1268) to extend the trade adjustment assistance
program, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
B. Summary of Congressional Consideration of the Bill
1. Background
On April 16, 2015 Senator Collins introduced S.1003 on
behalf of herself and Senator Wyden. On April 16, Senator Wyden
introduced S.1005.
2. Committee consideration
The Senate Committee on Finance met in open executive
session on April 22, 2015 to consider the Chairman's Mark to
reauthorize the TAA program and to amend provisions of the
program. The Committee also considered an extension and
modification of the Health Coverage Tax Credit (HCTC). The
proposal the Committee considered was based on S.1003 and
S.1005. During the Committee's consideration of the bill, one
amendment was offered and was not agreed to. The Committee
approved the proposal by a vote of 17 ayes and 9 nays.
C. Trade Adjustment Assistance Programs
TAA programs are intended to mitigate concentrated negative
effects that may be experienced by certain industries and
workers that face increased competition as a result of expanded
international trade policies. The program benefits and services
that are available to individual workers are administered by
the states through agreements between the Secretary of Labor
and each state Governor. TAA was created as part of the Trade
Expansion Act of 1962 in order to help companies and workers
that would be harmed by increased international trade.
Throughout the years, Congress amended the TAA programs several
times.
1. Trade Adjustment Assistance for workers
TAA for workers is the largest TAA program. It directly
supports displaced workers by providing funding for retraining
and income support while the worker is enrolled in training,
unless an eligible worker is provided a waiver. Other benefits
and services may also be available, including wage supplements
for older workers. TAA for workers is administered by the U.S.
Department of Labor (DOL).
TAA for workers was established by the Trade Expansion Act
of 1962 (P.L. 87-794). To counter higher program costs in the
early 1980s, the Omnibus Budget Reconciliation Act of 1981 cut
benefits and emphasized reemployment measures. The program's
1988 reauthorization restructured the program to increase
emphasis on retraining. In the 1990s, the core TAA program was
supplemented with a separate program that supported workers who
were adversely affected by increased competition as the result
of the North American Free Trade Agreement (NAFTA-TAA).
The Trade Act of 2002 (P.L. 107-210) reauthorized and
amended TAA alongside other trade laws. The 2002
reauthorization merged NAFTA-TAA with the main program and
expanded eligibility to secondary firms (e.g. component parts)
that were indirectly affected by trade. The 2002 law
established the HCTC, a refundable tax credit equal to 65% of
qualified premium costs for TAA-eligible workers who purchased
qualified health insurance.
In 2009, TAA was amended as part of the American Recovery
and Reinvestment Act (ARRA, P.L. 111-5). The ARRA provisions
expanded TAA eligibility to include service-sector workers who
face an increase in competitive imports or a shift in
production to any country, in addition to countries with which
the U.S. has a free trade agreement. Prior to ARRA, TAA was
limited to workers who produced ``articles.'' ARRA also
increased funding for TAA-sponsored training, increased the
maximum duration of income support, and raised the HCTC to 80%
of eligible health coverage expenses.
The ARRA provisions of TAA expired in February 2011 and the
program reverted back to the levels authorized under the Trade
Act of 2002. The Trade Adjustment Assistance Extension Act,
enacted in October 2011 (TAAEA, Title II of P.L. 112-40)
reinstated many eligibility and benefit provisions to near-ARRA
levels. Under the provisions enacted in 2011, the HCTC was
limited to 72.5% of qualified expenses and was scheduled to
sunset at the end of calendar year 2013.
TAAEA specified that the TAA program would operate under
the provisions enacted in 2011 through calendar year 2013. The
program would then revert to a more narrow set of provisions.
The changes were implemented as scheduled beginning January 1,
2014.
In accordance with the termination provisions in TAAEA, the
TAA for Workers program was scheduled to be phased out
beginning January 1, 2015. However, the Consolidated and
Further Continuing Appropriations Act, 2015 (P.L. 113-235)
provided full funding for the program and continued operation
of the program, including the certification of new workers,
through September 2015.
TAA for Workers is supported by mandatory appropriations.
The appropriation level is impacted by statutory caps and
expected program use. Depending on actual program use, outlays
may vary substantially from appropriation levels. In fiscal
year 2015, total funding for all DOL-administered components of
the program was $710.6 million.
2. Trade Adjustment Assistance for firms and farmers
In addition to the TAA for workers program, the Trade Act
of 1974, as amended, also authorized programs for firms and
farmers. The TAA for Firms and TAA for Farmers programs are
typically reauthorized alongside the larger TAA for workers
program. Both were reauthorized by TAAEA in 2011.
The Trade Adjustment Assistance program for Firms (TAAF)
was established alongside the Workers program in 1962. The
Firms program, administered by the U.S. Department of Commerce
Economic Development Administration (EDA), currently provides
technical assistance to help trade-impacted firms make
strategic adjustments that may allow them to remain competitive
in a global economy. The technical assistance is provided
through 11 regional Trade Adjustment Assistance Centers
(TAACs), which operate under cooperative agreements with EDA.
Funding for TAAF in fiscal year 2015 was $13 million.
TAA for Farmers was established by the Trade Act of 2002
(P.L. 107-210). It is administered by the U.S. Department of
Agriculture (USDA) and is authorized to provide technical
support and cash benefits to producers of agricultural
commodities and fishermen who are adversely affected by
increased imports. TAA for Farmers last received funding in the
first quarter of fiscal year 2011.
D. General Description of the Bill
TITLE I: EXTENSION OF THE TRADE ADJUSTMENT ASSISTANCE PROGRAM
Section 1--Short title
Sec. 1. This section contains the short title of the bill,
the ``Trade Adjustment Assistance (TAA), and for other purposes
Act of 2015.''
Section 2--Application of provisions relating to Trade Adjustment
Assistance
On January 1, 2014, the TAA program largely reverted to the
provisions in place prior to the Trade and Globalization
Adjustment Assistance Act of 2009 (TGAAA). These provisions,
which are current law, are referred to as ``Reversion 2014.''
Reversion 2014 maintains the same number of allowable weeks
for Trade Readjustment Assistance (TRA), but has a different
eligibility criteria and funding level for worker training. For
instance, to be eligible for TRA a worker must enroll in
training within 8 weeks of certification or 16 weeks of layoff,
whichever is later. Moreover, funding for worker training is
capped at $220 million with an additional 15% for state-based
administration. Additional funds are available for job search
and relocation allowances; however, case management and
employment services are not included. Currently, a
manufacturing sector worker is eligible for TAA benefits, and
that worker must demonstrate a nexus between their job loss and
a country with which the U.S. has a free trade agreement.
This section repeals the sunset provision--section 233 of
the TAAEA of 2011--and reinstates prior law as of December 31,
2013 as the date of enactment.
Repealing this provision allows for Section 233 to snap-
back to benefit and service levels as amended in the TAAEA of
2011. Without repealing this provision, benefit and service
levels would apply according to Reversion 2014. This amendment
contains technical and conforming changes to bring the bill
into compliance with the intended level of benefits and
services.
Section 3--Extension of Trade Adjustment Assistance Program
Authorization for TAA lapsed on December 31, 2013 and the
program has been operating under Reversion 2014. The
Consolidated and Further Continuing Appropriations Act, 2015
provided funding for the TAA for Workers program through fiscal
year 2015.
This section modifies the authorization termination date
for TAA for Workers, TAA for Firms, TAA for Farmers, and the
Reemployment TAA programs from December 31, 2013 to June 30,
2021.
The bill would amend section 236(a)(2)(A) of the Trade Act
to cap total annual funding for training, employment and case
management services (section 235), job search allowances
(section 237), and relocation allowances (section 238) at $450
million for fiscal years 2015 through 2021.
Because the bill reinstates the amendments from the TAA
Extension Act of 2011, the following requirements apply to the
$450 million cap: (i) no more than 10% of the amount provided
may be spent for Administration; (ii) no less than 5% of the
amount provided may be spent for case management and employment
services; (iii) the Department of Labor (DOL) may recapture
from the states funds remaining unobligated after two or three
years and distribute such funds to states in need of funds. In
addition, the modification eliminates individual entitlement to
job search and relocation allowances, instead granting States
the discretion to offer such allowance based on fund
availability.
The bill would amend section 246(b)(1) to extend the
termination date for the Reemployment Trade Adjustment
Assistance (RTAA) from December 31, 2013 to June 30, 2021.
The bill would amend sections 245(a), 255(a), and 298(a) to
modify the authorization of appropriations for TAA for Workers
through June 30, 2021, and for TAA for Firms and Farmers,
respectively, through fiscal year 2021.
This section reflects an agreement for a 7-year extension
of the TAA program for Workers, Firms and Farmers. This is a
longer-term extension compared to the TAAEA of 2011 (34
months); the AARA of 2009 (12 months); and the Trade Act of
2002 (5 years). The 7-year extension captures the projected
impact of increased imports or the outsourcing of jobs to a
foreign country from the anticipated conclusion of on-going and
future negotiations, including the Trans Pacific Partnership
(TPP) and the Transatlantic Trade and Investment Partnership
(T-TIP) negotiations.
The training cap of $450 million is an increase compared to
the $220 million cap in 2002; however, the cap is a decrease
compared to 2009 (over $600 million) and 2011 ($575 million).
Section 4--Performance measurement and reporting
Under current law, section 239(j) of the Trade Act of 1974
dictates the TAA data reporting requirements for a cooperating
state. A comprehensive performance accountability report shall
be made to the Secretary of Labor on a quarterly basis which
consists of core indicators of performance, the identification
of additional indicators designed to ensure accuracy and
verifiability of such data, and a description of efforts made
to improve outcomes for workers under the TAA program.
Under current law, section 239(j)(2) of the Trade Act of
1974 dictates the core indicators to be used for reporting data
by a cooperating state. Core indicators of performance include
(i) percentage of workers receiving benefits who are employed
during the first or second calendar quarter after the worker
ceases receiving TAA benefits; (ii) the percentage of workers
employed during the 2 calendar quarters following the earliest
calendar quarter during which the worker was employed; (iii)
the average earnings of such workers who are employed during
the 2 calendar quarters; and (iv) the percentage of workers who
obtain a recognized postsecondary credential.
This bill amends section 239(j) of the Trade Act of 1974 in
order to align it with the performance accountability measures
and reporting requirements under similar federally funded job
training programs, such as those implemented under the
Workforce Innovation and Opportunity Act (WIOA).
This section requires cooperating states and the Secretary
of Labor to prepare performance reports on an annual basis,
which must be available in an easily understandable format
through electronic means, and requires the Department of Labor
to make available certain performance data.
This bill amends section 249(B) of the Trade Act of 1974 to
make technical and conforming changes to information on workers
for the collection and publication of data and reports.
This bill amends section 247 of the Trade Act of 1974 to
include a new definition for a recognized postsecondary
credential, which includes industry-recognized certificates/
certification, a certificate of completion of an
apprenticeship, a license recognized by a state or Federal
Government, or an association or baccalaureate degree, which
also aligns with similar provisions in WIOA.
In a 2012 U.S. Government Accountability Office (GAO)
Report, several state workforce officials noted that data from
performance measures did not adequately reflect the program's
effect on its participants, and further commented that these
measures were not particularly useful for improving program
management.
Valuable information on TAA and its impact was not captured
by the criteria set forth in the current data reporting
requirement. This, in turn, inhibited Congress' ability to
perform its oversight responsibilities, to refine and improve
the program, its performance, and worker outcomes. The
modification to the reporting requirement seek to remedy this
problem. Additionally, the new reporting requirement enhances
the accountability of the TAA program by making available all
performance measures collected annually.
Section 5--Applicability of Trade Adjustment Assistance provisions
This section establishes the applicable provisions of TAA
for Workers who file petitions on or after January 1, 2014 and
prior to the date of enactment of this bill. Such gap-period
workers who were denied benefits are to be reconsidered for
and, if qualified, receive benefits and services in accordance
with this bill. Pending applicants that fall within this gap-
period will also be considered under the provisions of this
bill. The section also narrows the eligibility window for
certified workers to 90 days after the date of the enactment of
this bill.
In addition, this section provides similar eligibility
determination and reconsideration rules for firms under the TAA
for Firms program.
Section 6--Sunset provisions
This section creates a sunset provision requiring the TAA
program to revert to the January 1, 2014 parameters after June
30, 2021. This bill amends section 231(c) of the Trade Act of
1974 reverting the TAA for Workers, Alternative Trade
Adjustment Assistance (ATAA), TAA for Firms, and TAA for
Farmers programs back to the level in effect January 1, 2014 as
of July 1, 2021.
While beneficiaries certified for benefits prior to July 1,
2021 will continue to receive benefits to the extent funds are
available and the recipient is eligible to receive benefits.
The authorization for TAA for Workers, ATAA, TAA for Firms, and
TAA for Farmers will terminate on June 30, 2022.
Section 7: Extension and modifications of the Health Coverage Tax
Credit
In the case of an eligible individual, an advanceable,
refundable tax credit is provided for 72.5 percent of the
individual's premiums for qualified health insurance of the
individual and qualifying family members for each eligible
coverage month beginning in the taxable year.\1\ The credit is
commonly referred to as the Health Coverage Tax Credit (HCTC).
The credit is available only with respect to amounts paid by
the individual for the qualified health insurance.
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\1\Sec. 35. Qualifying family members are the individual's spouse
and any dependent for whom the individual is entitled to claim a
dependency exemption. Any individual who has certain specified coverage
is not a qualifying family member. Except where otherwise specified,
for purposes of this explanation of section 7 of H.R. 1892, all section
references are to the Internal Revenue Code of 1986, as amended (the
``Code'').
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Eligibility for the credit is determined on a monthly
basis. In general, an eligible coverage month is any month if
(1) the month begins before January 1, 2014, and (2) as of the
first day of the month, the individual is an eligible
individual, is covered by qualified health insurance, the
premium for which is paid by the individual, does not have
other specified coverage, and is not imprisoned under Federal,
State, or local authority. In the case of a joint return, the
eligibility requirements are met if at least one spouse
satisfies the requirements.
An eligible individual is an individual who is (1) an
eligible TAA recipient, (2) an eligible alternative TAA
recipient, or (3) an eligible Pension Benefit Guaranty
Corporation (PBGC) pension recipient.
The provision amends the definition of eligible coverage
month for HCTC purposes to include months beginning before
January 1, 2020, if the requirements for an eligible coverage
month are otherwise met.\2\
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\2\The bill generally also provides for extension of certain
expired provisions of the Trade Act of 1974, Pub. L. No. 93-618, as
amended, including provisions related to individuals eligible for trade
adjustment assistance.
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In order to coordinate eligibility for the premium
assistance credit with eligibility for the HCTC, under the
provision, to be eligible for the HCTC for any eligible
coverage month during a taxable year, the eligible individual
must elect allowance of the HCTC. Further, except as the
Secretary of Treasury may provide, the election applies for
that coverage month and all subsequent eligible coverage months
during the taxable year. The election also must be made no
later than the due date, with any extension, for filing his or
her income tax return for the year, and is irrevocable.
Further, the period for assessing any deficiency attributable
to the election (or revocation of the election, if permitted)
does not expire before one year after the date on which the
Secretary of Treasury is notified of the election (or
revocation). The taxpayer is not entitled to the premium
assistance credit for any coverage month for which the
individual elects the HCTC.
The provision eliminates the 30-day requirement as a
requirement for individual health insurance to be qualified
health insurance for purposes of the HCTC, but the provision
adds a requirement that the individual health insurance not be
purchased through an American Health Benefit Exchange, pursuant
to the Affordable Care Act. The provision otherwise extends
pre-2014 law for qualified health insurance with regard to the
Health Coverage Tax Credit, including the rules for State-based
coverage, and the treatment of COBRA continuation coverage and
coverage under certain Voluntary Employees' Beneficiary
Associations as qualified health insurance.
The Secretaries of the Treasury, Health and Human Services,
and Labor and the Director of Pension Benefit Guaranty
Corporation are directed to carry out programs of public
outreach, including on the Internet, to inform potential HCTC
eligible individuals of the extension of HCTC availability and
the availability of the election to claim such credit
retroactively for coverage months beginning after December 31,
2013.
The legislation extends the HCTC through 2019 so that
health coverage continues to be affordable for eligible TAA
recipients, alternative TAA recipients, and PBGC recipients, as
under pre-2014 law.
The provision is generally effective for coverage months
beginning after December 31, 2013. For any taxable year
beginning after December 31, 2013, but before the date of
enactment of the provision, the election to claim the HCTC may
be made any time on or after the date of enactment and before
the expiration of the 3-year period of limitation with respect
to such taxable year,\3\ and may be made on an amended income
tax return. The requirement that, in order to be qualified
health insurance, individual health insurance not be purchased
through an American Health Benefit Exchange, pursuant to the
Affordable Care Act, is effective for coverage months in
taxable years beginning after December 31, 2015.
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\3\Section 6511(a).
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Section 8: Customs user fees
Under current law, the authority to collect merchandise
processing fees will expire at the end of fiscal year 2024. The
legislation would permit these fees to be collected during the
period beginning July 29, 2025, and ending September 30, 2025.
For merchandise imported from July 15, 2025, through September
30, 2025, the bill would raise the merchandise processing fee
from 0.21 percent to 0.3464 percent of the value of the goods.
Under current law, authority to collect Customs COBRA
(Consolidated Omnibus Budget Reconciliation Act) fees will
expire after September 30, 2024. These fees are charged for the
entry into the United States of certain vehicles, vessels,
persons, and other entities and items.
Section 9: Child tax credit not refundable for taxpayers electing to
exclude foreign earned income from tax
Under current law, a refundable child tax credit of up to
$1,000 per qualifying child is available to taxpayers, with the
amount of the credit phasing out for individuals with income
above certain thresholds. The legislation would provide that
taxpayers who elect to exclude from gross income for a taxable
year any amount of foreign earned income or foreign housing
costs may not claim the refundable portion of the child tax
credit for the taxable year.
Section 10: Time for payment of corporate estimated taxes
The bill would shift payments of corporate estimated taxes
between fiscal years 2020 and 2021. For corporations with at
least $1 billion in assets, the bill would increase the portion
of corporate estimated payments due from July through September
in 2020. JCT estimates that those changes would increase
revenues by $2.0 billion in 2020 and reduce revenues by the
same amount in 2021.
Section 11: Coverage and payment for renal dialysis services for
individuals with acute kidney injury
Under current Medicare law, freestanding dialysis
facilities--including facilities owned by a hospital--may treat
patients with end-stage renal disease, but not people with
acute kidney injury (AKI). Those free-standing facilities are
paid an average of about $240 per dialysis treatment.
Under current law, Medicare beneficiaries with AKI may
receive dialysis services from hospital outpatient departments
(which are distinct from hospital-owned dialysis facilities).
Those facilities are paid according to the hospital-outpatient
prospective payment and the cost is about $600 per dialysis
treatment.
Under the bill, freestanding facilities would be allowed to
treat beneficiaries with AKI, and would be paid at the rate for
freestanding facilities.
Section 12: Modification of the Medicare sequester for fiscal year 2024
Under current law, the Medicare sequestration for fiscal
year 2024 is -4.0 percent for April 2024 through September 2024
and zero percent for October 2024 through March 2025 (In
Medicare, sequestration is applicable to spending on an April
through March basis, resulting in half of the spending
reductions occurring in the following fiscal year).
The bill would modify sequestration of Medicare spending
for the second half of fiscal year 2024 (October 2024 through
March 2025) by changing the sequester from 0.0 percent to -0.25
percent.
II. BUDGETARY IMPACT OF THE BILL
TAA
COMMITTEE ESTIMATES
In compliance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate, the following statement is made
concerning the estimated budget effects of the revenue
provisions of the bill as reported.
The bill, as reported, is estimated to have the following
effect on Federal budget receipts for fiscal years 2015-2025:
BUDGET AUTHORITY AND TAX EXPENDITURES
Budget authority
In compliance with section 308(a)(1) of the Congressional
Budget and Impoundment Control Act of 1974 (``Budget Act''),\4\
the Committee states that the [revenue] provisions of the bill
as reported involve no new or increased budget authority.
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\4\Pub. L. No. 93-344.
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Tax expenditures
In compliance with section 308(a)(1) of the Budget Act, the
Committee states that the provision of the bill relating to the
Health Coverage Tax Credit involves increased tax expenditures
and the provision of the bill relating to the child tax credit
involves reduced tax expenditures (see revenue table in part
A., above).
May 5, 2015.
Hon. Orrin G. Hatch,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for the Trade Adjustment
Assistance Reauthorization Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Christina
Hawley Anthony.
Sincerely,
Keith Hall.
Enclosure.
S. 1268--Trade Adjustment Assistance Reauthorization Act of 2015
Summary: The Trade Adjustment Assistance Reauthorization
Act of 2015 would temporarily expand coverage of Trade
Adjustment Assistance (TAA) for Workers through June 2021, and
reauthorize the program through June 2022. The bill also would
authorize appropriations for other trade adjustment assistance
programs for farmers and firms through 2021. Additionally, the
bill would extend the health coverage tax credit (HCTC) through
2019. Finally, it would extend the authority to collect and
increase the rate of certain customs user fees, and make
changes to the Medicare program.
CBO and the staff of the Joint Committee on Taxation (JCT)
estimate that enacting the bill would increase direct spending
by $7 million in 2015 and $1.8 billion over the 2015-2020
period, but would reduce direct spending by $174 million over
the 2015-2025 period. Enacting the bill also would decrease
revenues by $86 million over the 2015-2025 period, JCT
estimates.
On net, CBO and JCT estimate that enacting the bill would
reduce deficits by $88 million over the 2015-2025 period. Pay-
as-you-go procedures apply because enacting the legislation
would affect direct spending and revenues.
The bill would increase spending subject to appropriation
by $636 million over the 2015-2015 period, assuming
appropriation of the authorized amounts.
CBO has determined that the nontax provisions of the bill
contain no intergovernmental mandates as defined in the
Unfunded Mandates Reform Act (UMRA). Any costs incurred by
state governments to administer trade adjustment assistance
programs would result from participation in voluntary federal
programs.
CBO has determined that the nontax provisions of the bill
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 intergovernmental or
private-sector mandates.
Estimated cost to the Federal Government: The estimated
budgetary effects of the Trade Adjustment Assistance
Reauthorization Act of 2015 are summarized in Table 1. The
costs of this legislation fall within budget functions 350
(agriculture), 450 (community and regional development), 500
(education, training, employment, and social services), 550
(health), 570 (Medicare), 600 (income security), and 750
(administration of justice).
TABLE 1. SUMMARY OF ESTIMATED BUDGETARY EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015
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By fiscal year, in millions of dollars--
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-2020 2015-2025
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CHANGES IN DIRECT SPENDING\a\
Estimated Budget Authority.................................. 38 445 389 403 421 406 356 -11 -55 -66 -2,500 2,102 -174
Estimated Outlays........................................... 7 175 384 400 416 404 374 214 18 -66 -2,500 1,786 -174
CHANGES IN REVENUES
Estimated Revenues.......................................... 0 -42 -25 -7 -7 1,975 -1,980 0 0 0 0 1,894 -86
NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
Impact on Deficit........................................... 7 217 409 407 423 -1,571 2,354 214 18 -66 -2,500 -108 -88
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level......................................... 0 106 106 106 106 106 106 0 0 0 0 530 636
Estimated Outlays........................................... 0 6 25 83 102 106 106 100 81 23 4 322 636
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Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.
Basis of estimate: CBO and JCT assume that the Trade
Adjustment Assistance Reauthorization Act of 2015 will be
enacted by July 1, 2015. Because provisions of this bill that
would extend the authority to collect merchandise processing
fees for a specific period of time would interact with similar
provisions in two other bills approved by the Senate Committee
on Finance on April 22, 2015, CBO assumes that the three bills
will be enacted in the order that would extend those fees
chronologically. If the bills are enacted in a different order,
the estimated costs of this bill would be different.
Direct spending
CBO and the staff of the Joint Committee on Taxation
estimate that enacting the bill would increase outlays by $7
million in fiscal year 2015 and $1.8 billion over the 2015-2020
period, but would reduce net direct spending by $174 million
over the 2015-2025 period. Increased spending for TAA for
Workers and the health coverage tax credit would be more than
offset by: extensions to the authority to collect customs user
fees (which are reflected in the federal budget as offsetting
receipts and are treated as reductions indirect spending);
changes in eligibility for the refundable portion of the child
tax credit (the refundable portion of tax credits are treated
as direct spending in the budget); a change in coverage for
dialysis services paid for by Medicare; and a modification to
sequestration for Medicare. (See Table 2).
TAA for Workers. TAA for Workers provides job training,
extended unemployment compensation, and wage insurance benefits
to workers who lose their jobs because of international trade.
Although the authorization for TAA for Workers expired at the
end of December 2014, it continues to operate at the so-called
``Reversion 2014'' levels because the Congress provided a full-
year appropriation for fiscal year 2015. Under CBO's baseline,
outlays for those benefits total $575 million in fiscal year
2015. Consistent with the rules for budget projections in
section 257 of the Balanced Budget and Emergency Deficit
Control Act of 1985, most of the costs of extending TAA for
Workers at its current level are included in CBO's baseline and
are therefore not included in the costs attributable to the
proposed legislation. The spending assumed to continue in CBO's
baseline totals $8.9 billion over the 2016-2025 period.
The bill would temporarily extend certain provisions of the
TAA for Workers program that originally were enacted in 2009
and expired December 31, 2013. Among other things, the bill
would extend coverage to workers in service industries. (Under
current law, only workers involved in manufacturing can qualify
for benefits under the TAA for Workers program, though service
workers were temporarily covered through December 2013.)
Beginning in January 2014, the program reverted to the way it
operated before the 2009 amendments were enacted. The bill
would reinstate the expanded coverage that expired at the end
of December 2013, and increase funding for training; those
changes would extend through June 2021. Under the bill, TAA for
Workers would then return to the level at which it currently
operates for one year and expire at the end of June 2022.
TABLE 2. ESTIMATED EFFECTS OF THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------------
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-2020 2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Trade Adjustment Assistance for Workers:
Estimated Budget Authority.............................. 38 478 425 430 441 446 412 45 0 0 0 2,528 2,715
Estimated Outlays....................................... 7 208 420 427 436 444 430 270 73 0 0 1,942 2,715
Health Coverage Tax Credit:
Estimated Budget Authority.............................. 0 5 20 28 28 7 0 0 0 0 0 87 87
Estimated Outlays....................................... 0 5 20 28 28 7 0 0 0 0 0 87 87
Customs User Fees\a\
Estimated Budget Authority.............................. 0 0 0 0 0 0 0 0 0 0 -1,734 0 -1,734
Estimated Outlays....................................... 0 0 0 0 0 0 0 0 0 0 -1,734 0 -1,734
Child Tax Credit:
Estimated Budget Authority.............................. 0 -38 -36 -35 -28 -27 -26 -26 -26 -26 -26 -165 -293
Estimated Outlays....................................... 0 -38 -36 -35 -28 -27 -26 -26 -25 -26 -26 -165 -293
Coverage and Payment for Dialysis Services:
Estimated Budget Authority.............................. 0 0 -20 -20 -20 -20 -30 -30 -30 -40 -40 -80 -250
Estimated Outlays....................................... 0 0 -20 -20 -20 -20 -30 -30 -30 -40 -40 -80 -250
Medicare Sequestration:
Estimated Budget Authority.............................. 0 0 0 0 0 0 0 0 0 0 -700 0 -700
Estimated Outlays....................................... 0 0 0 0 0 0 0 0 0 0 -700 0 -700
Total Changes:
Estimated Budget Authority.......................... 38 445 389 403 421 406 356 -11 -55 -66 -2,500 2,102 -174
Estimated Outlays................................... 7 175 384 400 416 404 374 214 18 -66 -2,500 1,786 -174
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.
CBO estimates that the legislation would increase costs for
TAA for Workers by $7 million in 2015 and $2.7 billion over the
2015-2025 period, relative to CBO's baseline projections. The
details of those costs are as follows:
Expanded Coverage. The bill would restore the
eligibility criteria that expired on December 31, 2013. Most
notably, the bill would allow individuals in the service sector
who lose their jobs as the result of either increased imports
of similar services or shifts in production of those services
to apply for assistance. CBO estimates that the changes in
coverage would increase the number of people certified as
eligible to receive TAA for Workers by an average of 35,000
annually. Those certified workers would be eligible for
extended unemployment benefits. Under CBO's baseline, the cost
of those benefits total $7.0 billion over the 2015-2025 period.
Relative to CBO's baseline projections, enacting the bill would
increase direct spending for those extended unemployment
benefits by $1.1 billion over the 2015-2025 period, CBO
estimates.
Increased Funding for Training. Under current law,
funding for the training benefits under TAA for Workers is
capped at $220 million annually. Uncapped funding is also
available for administration and other benefits to assist
affected workers with costs related to looking for work and for
relocating, if necessary, for reemployment. Under CBO's
baseline, costs for training, administration, and other
benefits total $2.8 billion over the 2015-2025 period. The bill
would increase the cap on training benefits from $220 million
annually to $450 million through June2021, thus allowing the
people who would be newly certified under the bill to receive
training benefits. Under the bill, administrative and other
expenses would be subject to the new higher cap. Relative to
CBO's baseline projections, direct spending for training and
administrative expenses would increase by $1.2 billion over the
2015-2025 period, CBO estimates.
Extended Wage Insurance. Trade Adjustment
Assistance for Workers currently offers a wage insurance
program as an alternative to the extended unemployment benefits
offered under the regular TAA program. That alternative program
pays a wage subsidy to workers who are age 50 or older and do
not earn more than $50,000 annually in their new employment if
they are reemployed at a lower wage. Benefit payments may total
50 percent of the difference between the old and new wages,
with a maximum of $10,000 paid over a period of up to two
years. Under CBO's baseline, the wage insurance program will
cost $45 million in 2015. Like the other programs authorized
under TAA for Workers, the wage insurance program expired at
the end of December, 2014, and is currently operating under a
full-year appropriation through fiscal year 2015. However,
under the rules that govern CBO's baseline projections, and
unlike the extended unemployment and training benefits, the
costs of the wage insurance program fall out of CBO's
projections beginning in fiscal year 2016. By authorizing the
wage insurance program through June 2022, the bill would
increase direct spending by $0.4 billion over the 2015-2025
period, CBO estimates.
Health Coverage Tax Credit. The bill would extend the
health coverage tax credit, which expired on December 31, 2013,
from January 1, 2014, through December 31, 2019. It would set
the credit rate at 72.5 percent of premiums paid for qualifying
health insurance, and provide that a person cannot claim both
the HCTC and the premium assistance credit provided for in
section 36B of the Internal Revenue Code for the same coverage
month. JCT estimates those changes would increase direct
spending by $87 million over the 2015-2025 period. The changes
also would decrease revenues, as discussed below under the
heading ``Revenues.''
Customs User Fees. Under current law, the authority to
collect merchandise processing fees will expire at the end of
fiscal year 2024. The legislation would permit these fees to be
collected during the period beginning July 29, 2025, and ending
September 30, 2025. For merchandise imported from July 15,
2025, through September 30, 2025, the bill would raise the
merchandise processing fee from 0.21 percent to 0.3464 percent
of the value of the goods. CBO estimates those actions would
increase offsetting receipts by about $700 million in 2025. To
project collections of merchandise processing fees, CBO assumes
that the fees collected in future years will grow at the same
rate seen in recent years about 5 percent. In 2014 collections
from the merchandise processing fees totaled $2.3 billion. By
2024, CBO estimates those collections will total about $2.7
billion under current law. CBO expects that the proposed
increase in the fee rate would have a very minor effect on the
value of goods entering the United States.
Under current law, authority to collect Customs COBRA
(Consolidated Omnibus Budget Reconciliation Act) fees will
expire after September 30, 2024. These fees are charged for the
entry into the United States of certain vehicles, vessels,
persons, and other entities and items. The bill would extend
the authority to collect those fees through September 30, 2025.
CBO estimates that those changes would increase offsetting
receipts by about $1 billion in 2025.
COBRA fees collected by Customs and Border Protection (CBP)
are spent by the agency to fund certain operations. Under the
rules CBO uses to set its baseline spending projections,
authority for CBP to spend COBRA fees is assumed to continue
after the expiration date for the fees in 2024. Those same
baseline rules, however, do not provide for the corresponding
assumption that the collection of the COBRA fees be assumed to
continue beyond their expiration in 2024. Thus, extending the
authority to collect COBRA fees reduces future deficits
relative to CBO's baseline projections.
Child Tax Credit. Under current law, a refundable child tax
credit of up to $1,000 per qualifying child is available to
taxpayers, with the amount of the credit phasing out for
individuals with income above certain thresholds. The
legislation would provide that taxpayers who elect to exclude
from gross income for a taxable year any amount of foreign
earned income or foreign housing costs may not claim the
refundable portion of the child tax credit for the taxable
year. JCT estimates that provision would reduce direct spending
by $293 million over the 2015-2025 period.
Coverage and Payment for Dialysis Services. Under current
Medicare law, freestanding dialysis facilities--including
facilities owned by a hospital--may treat patients with end-
stage renal disease, but not people with acute kidney injury
(AKI). Those free-standing facilities are paid an average of
about $240 per dialysis treatment.
Under current law, Medicare beneficiaries with AKI may
receive dialysis services from hospital outpatient departments
(which are distinct from hospital-owned dialysis facilities).
Those facilities are paid according to the hospital-outpatient
prospective payment and the cost is about $600 per dialysis
treatment.
Under the bill, freestanding facilities would be allowed to
treat beneficiaries with AKI, and would be paid at the rate for
freestanding facilities. CBO estimates that allowing those
lower-priced dialysis services to be furnished to beneficiaries
with AKI would save about $250 million over the 2015-2025
period.
Medicare Sequestration. The bill would modify sequestration
of Medicare spending for fiscal year 2024. In Medicare,
sequestration is applicable to spending on an April through
March basis, resulting in half of the spending reductions
occurring in the following fiscal year. Under current law, the
Medicare sequestration for fiscal year 2024 is -4.0 percent for
April 2024 through September 2024 and zero percent for October
2024 through March 2025. The bill would change the second half
of the fiscal year 2024 sequestration (October 2024 through
March 2025) to -0.25 percent. CBO estimates that change would
reduce direct spending by $700 million in fiscal year 2025.
Revenues
Enacting the Trade Adjustment Assistance Reauthorization
Act of 2015 would increase revenues by $1.9 billion over the
2015-2020 period and decrease them by $86 million over the
2015-2025 period.
Health Coverage Tax Credit. As discussed above in the
section on direct spending, the bill would extend the HCTC
through December 31, 2019. JCT estimates those changes would
decrease revenues by $86 million over the 2015-2025 period.
Shift in Payment of Corporate Estimated Tax. The bill would
shift payments of corporate estimated taxes between fiscal
years 2020 and 2021. For corporations with at least $1 billion
in assets, the bill would increase the portion of corporate
estimated payments due from July through September in 2020. JCT
estimates that those changes would increase revenues by $2.0
billion in 2020 and reduce revenues by the same amount in 2021.
Spending subject to appropriation
The trade Adjustment Assistance Reauthorization Act of 2015
would authorize appropriations for TAA for Farmers and TAA for
Firms for fiscal years 2016 through 2021. TAA for Farmers did
not receive an appropriation for 2015, while TAA for firms
received appropriations totaling about $13 million for 2015.
TAA for Farmers. The bill would authorize the appropriation
of $90 million a year over the 2016-2021 period to provide TAA
for Farmers. CBO estimates this provision would cost $450
million over the 2016-2020 period, and $90 million after 2020,
assuming appropriation of the authorized amounts.
TAA for Farmers provides technical and financial assistance
to certain eligible agricultural producers to develop and
implement plans to improve the competitiveness and
profitability of their businesses. Those eligible for the
program have produced agricultural commodities that have
experienced a decline in market share or price because of
imported commodities.
TAA for Firms. The bill would authorize the appropriation
of $16 million a year over the 2016-2021 period for TAA for
Firms. CBO estimates that that implementing this provision
would cost about $41 million over the 2016-2020 period and $55
million after 2020, assuming appropriation of authorized
amounts.
TAA for Firms provides technical assistance to help U.S.
firms become more competitive in the global market. The
Economic Development Administration (EDA) within the Department
of Commerce has entered into cooperative agreements with 11
regional Trade Adjustment Assistance Centers which provide
assistance to firms to design and implement business recovery
plans that the EDA must approve.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in Table 3.
TABLE 3. CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR THE TRADE ADJUSTMENT ASSISTANCE ACT OF 2015 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON APRIL 22, 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------------
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015-2020 2015-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT\a\
Statutory Pay-As-You-Go Impact.............................. 7 217 409 407 423 -1,571 2,354 214 18 -66 -2,500 -108 -88
Memorandum:
Changes in Outlays...................................... 7 175 384 400 416 404 374 214 18 -66 -2,500 1,786 -174
Changes in Revenues..................................... 0 -42 -25 -7 -7 1,975 -1,980 0 0 0 0 1,894 -86
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: For direct spending, negative numbers indicate a decrease in outlays; for revenues, negative numbers indicate a reduction in revenues.
\a\On April 22, 2015, the Senate Committee on Finance approved multiple trade bills: Each of those bills would extend the authority to collect merchandise processing fees for a specific period
of time. Because of interactions among the provisions in those bills, and for the purposes of this estimate, CBO assumes that the three bills will be enacted in the order that would extend
those fees chronologically. If the bills are enacted in a different order, the estimated costs would be different.
Estimated impact on state, local, and tribal governments:
CBO has determined that the nontax provisions of the bill
contain no intergovernmental mandates as defined in UMRA. Any
costs incurred by state governments to administer trade
adjustment assistance programs would result from participation
in voluntary federal programs. JCT has determined that the tax
provisions of the bill also contain no intergovernmental
mandates.
Estimated impact on the private sector: CBO has determined
that the nontax provisions of the Trade Adjustment Assistance
Reauthorization Act of 2015 would impose private-sector
mandates, as defined in UMRA, on entities required to pay
merchandise processing fees. The bill would extend those fees
through September 30, 2025 and raise the fee rate beginning
July 15, 2025 and ending September 30, 2025. CBO estimates that
the aggregate costs 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 as defined in UMRA.
Previous CBO estimate: On May 4, 2015, CBO transmitted a
cost estimate of the budgetary effects of H.R. 1892, as ordered
reported by the House Committee on Ways and Means on April 23,
2015. The costs of the Trade Adjustment Assistance Act of 2015
are the same as the costs shown in the estimate for H.R. 1892.
Estimate prepared by: Federal Costs: Christina Hawley
Anthony--Trade Adjustment Assistance for Workers; Mark
Grabowicz--Customs User Fees; Lara Robillard and Jamease
Miles--Dialysis Services; Lori Housman--Medicare Sequestration;
Dave Hull--TAA for Farmers; Martin von Gnechten--TAA for Firms;
Mark Booth and Pamela Greene--Federal Revenues; Impact on
State, Local, and Tribal Governments: Jon Sperl; Impact on the
Private Sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
III. VOTES OF THE COMMITTEE
In compliance with paragraph 7(b) of rule XXVI of the
Standing Rules of the Senate, the following statements are made
concerning the roll call votes in the Committee's consideration
of the bill.
MOTION TO REPORT THE BILL
The original bill to extend the Trade Adjustment and
Assistance (TAA) program, and for other purposes, and to amend
the Internal Revenue Code of 1986 to expand and modify the
credit for health insurance costs of certain eligible
individuals, and for other purposes was ordered favorably
reported by a roll call vote of 17 ayes and 9 nays on April 22,
2015. The vote, with a quorum present, was as follows (proxy
votes are not counted in the total vote on a motion to order a
bill reported):
Ayes.--Senators Burr (proxy), Portman, Toomey, Coats,
Heller, Wyden, Schumer, Stabenow, Cantwell, Nelson, Menendez,
Carper, Cardin, Brown (proxy), Bennet, Casey (proxy), Warner.
Nays.--Senators Hatch, Grassley, Crapo, Roberts, Enzi,
Cornyn (proxy), Thune, Isakson, Scott (proxy).
VOTE ON AMENDMENT
(1) An amendment by Senator Brown (en bloc) to increase
funding levels for TAA Workers to $575 million; expand TAA
eligibility to public sector workers; increase funding levels
for TAA Firms from $16 million to $50 million, was defeated by
a roll call vote, 13 ayes and 13 nays.
Ayes.--Portman, Wyden, Schumer (proxy), Stabenow, Cantwell,
Nelson, Menendez, Carper, Cardin, Brown, Bennet, Casey (proxy),
Warner.
Nays.--Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn
(proxy), Thune, Burr (proxy), Isakson, Toomey, Coats, Heller,
Scott (proxy).
IV. REGULATORY IMPACT OF THE BILL
TRADE ADJUSTMENT ASSISTANCE
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact of the reported bill.
The bill makes a number of amendments extending the trade
adjustment assistance programs. Overall, the bill does not
result in an increase in regulatory burdens for States,
municipalities or business.
Responsibilities for implementing the trade adjustment
assistance program falls principally on the Federal Government,
but regulatory burdens are also imposed on the States and, to a
lesser extent, municipalities and business.
States--States play a critical role in implementing the
trade adjustment assistance program. Under existing law once a
petition is certified by the Department of Labor's Employment
and Training Administration (ETA), state workforce agency staff
members contact the employer of the adversely affected firm to
offer services and obtain a list of affected workers. The state
agency then contacts the workers on the list and invites them
in for services and to make a determination of individual TAA
eligibility. Services include: (i) training; (ii) trade
readjustment allowances (TRA); (iii) waivers; (iv) alternative
trade adjustment assistance for older workers (ATAA); (v) case
management and reemployment services; and (vi) job search and
relocation allowances.
The reported bill allows for the continuation of the
state's role and imposes no additional regulatory burden.
Municipalities--There is no regulatory impact of the bill
on municipalities.
Businesses--The reported bill will not increase the
regulatory burden and does not impose additional paperwork
requirements on businesses.
Personal Privacy--The reported bill does not affect the
personal privacy of individuals.
Intergovernmental Mandates--The following information is
provided in accordance with section 423 of the Unfunded
Mandates Reform Act of 1995. (Pub. L. No. 104-4). The Committee
has reviewed the provisions of S. 1003 as approved by the
Committee on April 22, 2015. In accordance with the
requirements of Pub. L. No. 104-04, the Committee has
determined that the bill does not contain intergovernmental
mandates as defined in the UMRA.
HEALTH COVERAGE TAX CREDIT
Impact on individuals and businesses, personal privacy and paperwork
The HCTC provisions of the bill are not expected to impose
additional administrative requirements or regulatory burdens on
individuals or businesses. The HCTC provisions of the bill do
not impact personal privacy.
Unfunded Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.\5\
---------------------------------------------------------------------------
\5\Pub. L. No. 104-4.
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The Committee has determined that the HCTC provisions of
the bill do not contain Federal mandates on the private sector.
The Committee has determined that the HCTC provisions of the
bill do not impose a Federal intergovernmental mandate on
State, local, or tribal governments.
Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (``IRS Reform Act'')\6\ requires the
staff of the Joint Committee on Taxation (in consultation with
the Internal Revenue Service and the Treasury Department) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the Senate Committee
on Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
and has widespread applicability to individuals or small
businesses. For each such provision identified by the staff of
the Joint Committee on Taxation a summary description of the
provision is provided along with an estimate of the number and
type of affected taxpayers, and a discussion regarding the
relevant complexity and administrative issues.
---------------------------------------------------------------------------
\6\Pub. L. No. 105-206.
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The staff of the Joint Committee on Taxation has determined
that a complexity analysis is not required under section
4022(b) of the IRS Reform Act because the bill contains no
provisions that amend the Internal Revenue Code and that have
``widespread applicability'' to individuals or small
businesses, within the meaning of the rule.
V. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In the opinion of the Committee, in order to expedite the
business of the Senate, it is necessary to dispense with the
requirements of paragraph 12 of rule XXVI of the Standing Rules
of the Senate (relating to the showing of changes in existing
law made by the bill as reported by the Committee).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]