By Jay Heflin - 05/11/10 11:51 PM EDT
The bill's official title is Promoting American Jobs and Closing Tax Loopholes Act, and in large part will comply with pay-as-you-go rules.
"There may be 1 or 2 provisions that are not covered by statutory pay-go, but basically what's in there that is not paid for are emergency provisions that are covered by pay-go," Levin said, adding that $50 billion of the bill's total cost will be offset.
The legislation is expected to cost between $180 billion and $200 billion, according to sources.
The bill extends several individual and business tax breaks that expired last year, resuscitates benefits for the unemployed, addresses the so called 'doc fix,' extends welfare funding to states, and modifies Build America Bonds. The bill might also include funds for summer programs.
State-assistance programs like the Temporary Assistance for Needy Families (TANF) and Federal Medical Assistance Percentages (FMAP) are included in the bill and will not be offset because they are considered to be emergency funding.
The tax portion of the bill is where most of the offsets will be absorbed.
One payfor will be to ultimately tax compensation designated as "carried interest" at ordinary income rates.
"It will be phased-in across the board," the chairman said. "There are no carve outs."
Levin couldn't say how long the phase-in would last, but carried interest would eventually qualify for the top income tax rate.
Other offsets are allowing companies to delay pension funding requirements and bar treaty shopping by multinational companies. Prohibiting the "splitting" of foreign tax credits is also expected to be in the bill.
Extending Build America Bonds will also require offsets. The House-passed measure will be the template for next week's bill. But Levin wants to reduce the amount that is in the original bill regarding how much the federal government reimburses states on interest.
"The Build America Bonds is being tailored down a bit because it's expensive," Levin said. "We haven't yet reached agreement on every single detail."
The bill will also include payments for court settlements for cases referred to as Pigford and Kobel, as well as remuneration to black farmers.
Allowing for greater disclosure on 401(k) plans could also be a part of the bill. Levin said no decision had been made on that issue.