Economic Stimulus and Budget Control Act

To amend the Internal Revenue Code to provide emergency stimulus to the economy and enact countercyclical fiscal policy measures which include reducing discretionary and mandatory expenditures, revising the individual and corporate income tax schedules, raising the rate of Social Security payroll tax,  raising the tax on motor fuels, and establishing new taxes on greenhouse gas emissions and securities transactions.

It is the sense of Congress that—

(1) stability in the economy is best obtained through the use of countercyclical fiscal policy;

(2) the use of a public deficit as a stimulus to the economy is a necessary and effective means of mitigating the contractionary effects of a recession;

(3) surpluses are required during periods of growth to balance the long-term budget; and

(4) in order to reach the full potential of the economy, Congress, through this Act, recognizes that it must enact countercyclical fiscal policy and achieve long-term balanced budgets.

The table below displays figures for fiscal years 2020 through 2025

Provision2020202120222023202420252020-2025
2-year refundable tax credit up to $5,000 plus $1,500 per child$697bn$331bnn.an.an.an.a$1028bn
1-year reduction in employer OASDI tax to 3.1 percent$186bnn.an.an.an.an.a$186bn
1-year reduction in corporate income tax to 10 percent$96bnn.an.an.an.an.a$96bn
Increase motor fuels taxes by 15¢ and index for inflationn.an.an.an.a-$25bn-$26bn-$51bn
Removing the stepped-up basis rule for inherited assetsn.a$7bn$9bn-$10bn-$12bn-$13bn-$51bn
Use C-CPI for Social Security cost-of-living adjustmentsn.an.a-$12bn-$17bn-$22bn-$27bn-$78bn
Impose a 0.05 percent tax on securities transactionsn.an.an.an.a-$52bn-$53bn-$105bn
Restore overall limitation on itemized deductionsn.an.an.an.a-$57bn-$63bn-$120bn
New capital gains tax schedule with a 25 percent top rate-$20bn-$21bn-$22bn-$22bn-$22bn-$23bn-$130bn
Raising the OASDI payroll tax by 1 percentn.an.an.an.a-$75bn-$78bn-$152bn
Remove deduction for global intangible low-tax incomen.an.an.an.a-$115bn-$121bn-$236bn
Tax on greenhouse gas emissions at $25 per tonn.an.an.an.a-$120bn-$123bn-$243bn
Discretionary spending limits for years 2022 through 2025n.an.a-$32bn-$50bn-$71bn-$98bn-$252bn
New income tax schedule with a 65 percent top raten.an.an.an.a-$335bn-$368bn-$703bn
New corporate income tax with a 40 percent top raten.an.an.an.a-$382bn-$401bn-$782bn
Change to Deficit$959bn$303bn-$75bn-$99bn-$1281bn-$1385bn-$1578bn

The bill I wrote:

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