JOINT COMMITTEE ON TAXATION February 2, 2009 JCX-15-09 ESTIMATED REVENUE EFFECTS OF THE INTERNAL REVENUE CODE PROVISIONS CONTAINED IN H.R. 2, THE "CHILDREN'S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009,"[1] AS AMENDED BY THE SENATE ON JANUARY 29, 2009 Fiscal Years 2009 - 2018 [Millions of Dollars] Provision I. Increase Tax Rates and Modify Certain Definitions A. Increase in Excise Tax Rate on Tobacco Products and Cigarette Papers and Tubes [2] 1. Small Cigars.............................................................. 2. Large Cigars.............................................................. 3. Cigarettes................................................................... 4. All other tobacco products......................................... B. Modify Definition of Roll-Your-Own Tobacco........ Effective 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009-13 2009-18
ara 3/31/09 ara 3/31/09 ara 3/31/09 ara 3/31/09 ara 3/31/09
46 75 3,489 145 [3]
108 424 6,479 307 [3] 7,320
91 419 6,173 289 [3] 6,972
91 425 6,117 286 [3] 6,920
91 433 6,066 285 [3] 6,876
92 442 6,014 283 [3] 6,831
92 451 5,960 281 [3] 6,783
92 458 5,906 279 [3] 6,736
92 466 5,849 276 [3] 6,684
92 474 5,795 274 [3] 6,636
428 1,777 28,326 1,312 1 31,844
886 4,070 57,850 2,705 2 65,513
Total of Increase Tax Rates and Modify Certain Definitions ………………… 3,756 II. Strengthen Regulatory and Enforcement Authority With Respect to Tobacco and Alcohol A. Permit, Reporting, and Recordkeeping Requirements for Manufacturers and Importers of Processed Tobacco.................................................... B. Broaden Authority to Deny, Suspend, and Revoke Tobacco Permits........................................................ C. Clarify Statute of Limitations Pertaining to Excise Taxes Imposed on Imported Alcohol, Tobacco Products, and Cigarette Papers and Tubes................ D. Impose Immediate Tax on Unlawfully Manufactured Tobacco Products and Cigarette Papers and Tubes.......................................................
4/1/09 DOE
- - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - -
aiiUSa DOE
- - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - -
DOE
- - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - -
Page 2
Provision E. E Use of Tax Information in Tobacco Transition Payment Assessments [4].......................................... [4] F Study Concerning Magnitude of Tobacco F. Smuggling in the United States................................. States
Effective
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018 2009-13 2009-18
DOE [5]
[3]
1
[3]
[3]
[3]
[3]
[3]
[3]
[3]
[3]
1
2
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - [3] 1 [3] [3] [3] [3] [3] [3] [3] [3] 1 2
Total of Strengthen Regulatory and Enforcement y p Authority With Respect to Tobacco and Alcohol ……………………………… III. Modify III Modify Timing for Corporate Estimated Tax g p Ta Payment [ ] …………………………………………… P y t [6]
DOE
---
--7,321 7 321
--6,972 6 972
--6,920 6 920
302 7,178 7 178
-302 302 6,529 6 529
--6,783 6 783
--6,736 6 736
--6,684 6 684
--6,636 6 636
302 32,147 32 147
--65,515 65 515
NET TOTAL ………………………………………………………………………… 3 756 3,756 Joint Committee on Taxation -------------------------------------NOTE: D il NOTE Details may not add to totals due to rounding. dd l d di Legend for "Effective" column: aiiUSa = articles imported into the United States after Effective
ara = articles removed after
DOE = date of enactment
g g models y g g y [1] Revenue estimates are p p prepared using our 2009 estimating models, which rely on the Congressional Budget Office’s January 2009 macroeconomic forecasts. forecasts The C g Th Congressional Budget Office plans to prepare a March revision to its baseline macroeconomic assumptions. If large-scale stimulus legislation is enacted i l B dg t Offi pl t p p M h i i t it b li i pti l g l ti l l gi l ti i t d ly in 2009, th C g i l B dg t Offi ’ M h i d i f t ld be p t d to differ, perhaps ig ifi tly, f th i early i 2009, the Congressional Budget Office’s March 2009 revised macroeconomic forecasts could b expected t diff , p h p significantly, from their y , January 2009 counterparts. In that case, we anticipate th t we would revise our 2009 estimating models to reflect the Congressional Budget Office’s March 2009 J t p t I th t ti ip t that ld i ti ti g d l t fl t th C g i l B dg t Offi ’ M h macroeconomic f i forecasts: revenue estimates p p d using th t ti t prepared i g these revised M h 2009 macroeconomic i p t again could diff , p h p materially, from i d March i inputs g i ld differ, perhaps t i lly, f revenue estimates of the same request using our 2009 models with January 2009 macroeconomic forecasts. i f h q i g d l ihJ y i f The [2] Th excise tax rates on tobacco products and cigarette papers and tubes would b as f ll i b d d i d b ld be follows: i i hi h h d h d ("small cigars")……………… $50.33 per thousand ($1.0066 per pack) ll i ) h d ($ k) Cigars weighing not more than three pounds per thousand ( small cigars )……………… $ $ Cigars weighing more than three pounds per thousand ( large cigars )……………………52.75% of the manufacture s or importer s sales price but not more than $0.4026 per cigar ("large cigars")……………………52.75% manufacture's importer's ( small cigarettes )………… 33 per thousand ($1.0066 per pack) $50.33 Cigarettes weighing not more than three pounds per thousand ("small cigarettes") $50 ($1 0066 Cigarettes weighing more than three pounds per thousand ("large cigarettes") ( large cigarettes )……………$105.69 per thousand $105 69 Cigarette papers papers……………………………………………………………………………… 0315 for each 50 papers $0.0315 $0 tubes………………………………………………………………………………$0.0630 for each 50 tubes Cigarette tubes $0 0630 Snuff………………………………………………………………………………………… 51 per pound $1.51 Snuff $1 tobacco……………………………………………………………………………$0.5033 per pound Chewing tobacco $0 5033 tobacco…………………………………………………………………………………$2.8311 per pound Pipe tobacco $2 8311 Roll-your-own tobacco……………………………………………………………………… 78 per pound $24.78 Roll your own tobacco $24 [Footnotes for JCX-15-09 are continued on the following page] JCX 15 09
Page 3
Footnotes for JCX-15-09 F t t f JCX 15 09 continued: ti d [ ] [3] [ ] [4] [ ] [5] [6] G i of l th $500,000 Gain f less than $500,000. E ti t p id d by the Congressional Budget Office. i l B dg t Offi Estimate provided by th C g Th study will be completed no later than one year after the date of enactment. pl d l h y f h d f The dy ill b I i h i d i d f for i ih f l billi f d i J l A Increase b 0 5 percentage points the required corporate estimated tax payments factor f corporations with assets of at least $1 billion for payments due in July, August, by 0.5 d b and September 2013.