Bill Overview
Title: Relief for Families Act of 2022
Description: This bill permits state and local coronavirus fiscal recovery funds to be used to address increased costs of essential items. Specifically, the bill authorizes a temporary suspension of sales taxes for essential items, including clothing that does not exceed $100 per item, food, diapers, feminine hygiene products, prescription and over-the-counter medicine, items to prepare for natural disasters or severe weather, school supplies, and energy efficient appliances.
Sponsors: Sen. Warnock, Raphael G. [D-GA]
Target Audience
Population: People purchasing essential items covered by the Act
Estimated Size: 330000000
- The bill directly affects individuals who purchase essential items like clothing, food, diapers, feminine products, and medicines.
- Everyone who purchases and pays sales tax on these items will benefit from the cost relief.
- Low-income families and individuals, who spend a larger portion of their income on these essential items, will be particularly impacted.
- The bill will also impact state and local governments' revenue from sales tax.
- Families preparing for natural disasters or purchasing school supplies will see cost relief.
- Both consumers and retail businesses may see transactional impacts due to changes in pricing and tax applications.
Reasoning
- The relief is targeted towards purchasers of essential goods who are directly affected by sales taxes on these items. Given the broad inclusion of essential goods, the policy is relevant to a wide cross-section of the US population across various demographics and income levels.
- The budget limits the extent of tax relief that can be provided, suggesting the policy may be more impactful on individuals who are currently more burdened by sales tax, particularly in lower income brackets.
- Including individuals who are not significantly affected by the policy helps establish a baseline for comparison in terms of the policy's potential reach and limitations in scope.
- The commonness variable will vary to reflect the prevalence of each representative person's profile in the US population.
Simulated Interviews
nurse (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- This policy would help my family save money on daily essentials like food and clothes for my children.
- As a single mother on a tight budget, even small savings make a big difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
construction worker (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- This policy would provide some relief from high costs, especially when buying food and school supplies.
- It's not a game changer but every bit helps when managing a family budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
software engineer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- I probably won't notice much impact from this policy.
- Sales tax savings on essentials are a very small fraction of my expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
retired (Cedar Rapids, IA)
Age: 61 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- The tax relief on essentials could make a difference since I'm on a fixed income.
- This is particularly important for medications and healthcare items.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
small business owner (Chicago, IL)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- This could increase foot traffic in my store if people feel they are saving on essentials.
- It might complicate accounting slightly, but the potential revenue boost is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
teacher (Miami, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Any reduction in sales taxes can help stretch my paycheck further, especially when buying for my household and classroom.
- The savings on school supplies are particularly appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
lawyer (Baltimore, MD)
Age: 37 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- The policy changes won't materially affect my wellbeing or finances.
- I am supportive in principle if it helps those who need it more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
student (Columbus, OH)
Age: 23 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 13/20
Statement of Opinion:
- The savings on essentials, especially food, would help me manage better on my student budget.
- Every little bit counts when you're studying and working part-time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
factory worker (Detroit, MI)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 17/20
Statement of Opinion:
- Sales tax relief on essentials will bring welcome relief for my family, especially for food and clothing.
- Maintaining a large family on a single income is challenging, and this policy helps.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
freelancer (Seattle, WA)
Age: 27 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- The policy could make living expenses slightly easier to manage when contracts are scarce.
- Savings on basic items are a relief with an unstable income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $7800000000 (Low: $7000000000, High: $8500000000)
Year 2: $7800000000 (Low: $7000000000, High: $8500000000)
Year 3: $8000000000 (Low: $7200000000, High: $8600000000)
Year 5: $8100000000 (Low: $7300000000, High: $8700000000)
Year 10: $8500000000 (Low: $7600000000, High: $9000000000)
Year 100: $15000000000 (Low: $12500000000, High: $17500000000)
Key Considerations
- The bill temporarily suspends sales taxes on a broad array of essential items, impacting both consumers and state/local revenue structures.
- Reallocation of fiscal recovery funds may mitigate immediate state/local revenue shortfalls.
- Sales tax policy changes can influence consumer behavior and spending patterns.