Adjustment for current policies
Purpose
The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting 4 areas of the budget—
payments made under section 1395w–4 of title 42 (referred to in this section as “Payment for Physicians’ Services”);
the Estate and Gift Tax under subtitle B of title 26;
the AMT; and
provisions of EGTRRA or JGTRRA that amended title 26 (or provisions in later statutes further amending the amendments made by EGTRRA or JGTRRA), other than—
the provisions of those 2 Acts that were made permanent by the Pension Protection Act of 2006 (Public Law 109–280);
amendments to the Estate and Gift Tax referred to in paragraph (2);
the AMT referred to in paragraph (3); and
the income tax rates on ordinary income that apply to individuals with adjusted gross incomes greater than $200,000 for a single filer and $250,000 for joint filers.
Duration
Medicare payments to physicians
Criteria
Adjustment
The amount of the maximum current policy adjustment shall be the difference between—
estimated net outlays attributable to the payment rates and related parameters in accordance with subsections (d) and (f) of section 1395w–4 of title 42 (as scheduled on
what those net outlays would have been if—
the nominal payment rates and related parameters in effect for 2009 had been in effect through
thereafter, the nominal payment rates and related parameters described in subparagraph (A) had applied and the assumption described in clause (i) had never applied.
Limitation
If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before
estimated net outlays attributable to the payment rates and related parameters specified in section 1395w–4 of title 42 (as scheduled on
what those net outlays would have been if the nominal payment rates and related parameters in effect for 2009 had been in effect, without change, for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
Estate and Gift Tax
Criteria
Adjustment
The amount of the maximum current policy adjustment shall be the difference between—
total revenues projected to be collected under title 26 (as scheduled on
what those revenue collections would have been if, on the date of enactment of the legislation meeting the criteria in paragraph (1), estate and gift tax law had instead been amended so that the tax rates, nominal exemption amounts, and related parameters in effect for tax year 2009 had remained in effect through
Limitation
If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before
total revenues projected to be collected under title 26 (as scheduled on
what those revenues would have been if the estate and gift tax law rates, nominal exemption amounts, and related parameters in effect for 2009, with nominal exemption amounts indexed for inflation after 2009 consistent with subsection (g), had been in effect for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
Duration of policy adjustment
AMT relief
Criteria
Adjustment
The amount of the maximum current policy adjustment shall be the difference between—
total revenues projected to be collected under title 26 (as scheduled on
what those revenue collections would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), AMT law had instead been amended by making commensurate adjustments in the exemption amounts for joint and single filers in such a manner that the number of taxpayers with AMT liability or lost credits that occur as a result of the AMT would not be estimated to exceed the number of taxpayers affected by the AMT in tax year 2008 in any year for which relief is provided, through
Limitation
If the provisions in the legislation that cause it to meet the criteria in paragraph (1) cover a time period that ends before
total revenues projected to be collected under title 26 (as scheduled on
what those revenues would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), AMT law had instead been amended by making commensurate adjustments in the exemption amounts for joint and single filers in such a manner that the number of taxpayers with AMT liability or lost credits that occur as a result of the AMT would not be estimated to exceed the number of AMT taxpayers in tax year 2008 for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
Duration of policy adjustment
Permanent extension of middle-class tax cuts
Criteria
Legislation that includes provisions extending middle-class tax cuts shall trigger the current policy adjustment required by this chapter if those provisions extend 1 or more of the following provisions:
The 10 percent bracket as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendments through
The child tax credit as in effect for tax year 2010, as provided for under section 201 of EGTRRA and any later amendments through
Tax benefits for married couples as in effect for tax year 2010, as provided for under title III of EGTRRA and any later amendments through
The adoption credit as in effect in tax year 2010, as provided for under section 202 of EGTRRA and any later amendments through
The dependent care credit as in effect in tax year 2010, as provided for under section 204 of EGTRRA and any later amendments through
The employer-provided child care credit as in effect in tax year 2010, as provided for under section 205 of EGTRRA and any later amendments through
The education tax benefits as in effect in tax year 2010, as provided for under title IV of EGTRRA and any later amendments through
The 25 and 28 percent brackets as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendments through
The 33 percent bracket as in effect for tax year 2010, as provided for under section 101(a) of EGTRRA and any later amendment through
The rates on income derived from capital gains and qualified dividends as in effect for tax year 2010, as provided for under sections 301 and 302 of JGTRRA and any later amendment through
The phaseout of personal exemptions and the overall limitation on itemized deductions as in effect for tax year 2010, as provided for under sections 102 and 103 of EGTRRA of 2001, respectively, and any later amendment through
The increase in the limitations on expensing depreciable business assets for small businesses under section 179(b) of title 26 as in effect in tax year 2010, as provided under section 202 of JGTRRA and any later amendment through
Adjustment
The amount of the maximum current policy adjustment shall be the difference between—
total revenues projected to be collected and outlays to be paid under title 26 (as scheduled on
what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) were made permanent.
Limitation
If the provisions in the legislation that cause it to meet the criteria in paragraph (1) are not permanent, subject to the maximum adjustment provided for under paragraph (2), the amount of each current policy adjustment made pursuant to this section shall be limited to the difference between—
total revenues projected to be collected and outlays to be paid under title 26 (as scheduled on
what those revenue collections and outlay payments would have been if, on the date of enactment of legislation meeting the criteria in paragraph (1), the provisions identified in paragraph (1) had been in effect, without change, for the same period of time covered by the relevant provisions of the eligible legislation as under subparagraph (A).
Indexing for inflation
Guidance on estimates and current policy adjustments
Middle class tax cuts
For purposes of estimates made pursuant to subsection (f)—
each of the income tax provisions shall be estimated as though the AMT had remained at current law as scheduled on
if more than 1 of the income tax provisions is 2