About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 The Budgetary Effects of the Tax Credit for Employer-Paid Sick and Family Leave during the Coronavirus Pandemic 1 (July 16, 2021)

handle is hein.congrec/cbobefftcpd0001 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Phillip L. Swagel, Director U.S. Congress Washington, DC 20515 July 16, 2021 Honorable Mark R. Warner United States Senate Washington, DC 20510 Re: The Budgetary Effects of the Tax Credit for Employer-Paid Sick and Family Leave During the Coronavirus Pandemic Dear Senator: As you requested, I am writing to provide information about the budgetary effects of the tax credit for employer-paid sick and family leave. Original Cost Estimates The Families First Coronavirus Response Act (FFCRA) required qualifying businesses to provide paid leave to employees for absences related to the coronavirus pandemic. That act also established a tax credit to cover employers' expenditures on coronavirus-related paid leave taken by employees between April 1, 2020, and December 31, 2020. On April 2, 2020, the Congressional Budget Office and the staff of the Joint Committee on Taxation (JCT) estimated that the provision would increase federal deficits by $105 billion over fiscal years 2020 to 2031.1 Subsequent legislation-the Coronavirus Aid, Relief, and the Economic Security (CARES) Act; the Consolidated Appropriations Act, 2021 (CAA); and the American Rescue Plan Act (ARPA)-modified the credit and extended it through September 30, 2021. JCT estimated that those changes would increase the cost of the tax credit by about $8 billion.2 1. That cost was expected to be incurred mostly as a reduction in revenues, but also in part as an increase in direct spending. See Congressional Budget Office, letter to the Honorable Nita M. Lowey concerning CBO's preliminary estimate of the effects of H.R. 6201, the Families First Coronavirus Response Act, www.cbo.gov/publication/56316. 2. See Joint Committee on Taxation, Estimated Revenue Effects of H.R. 1319, the American Rescue Plan Act of 2021, as Amended by the Senate, Scheduled for Consideration by the House of Representatives, JCX-14-21 (March 9, 2021), wwwjct.gov/publications/202 1/jcx-14- 21, and Estimated Budget Effects of the Revenue Provisions Contained in Rules Committee Print 116-18, the Consolidated Appropriations Act, 2021 (December 21, 2020), www.jct.gov/publications/2020/jcx-24-20. www.cbo.gov

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most