THE REVENUE IMPACT OF THE TWO PERCENT EXCISE TAX: THE CONGRESSIONAL BUDGET OFFICE ESTIMATES RELATING TO THE JAMES ZADROGA 9/11 HEALTH AND COMPENSATION ACT

After two years of development, the James Zadroga 9/11 Health and Compensation Act of 2010 (the "Act") passed quickly, with little substantive debate. A last minute amendment to the revenue provision of the Act, however, has evoked controversy and criticism. The Act created the World Trade Center Health Program for the purpose of providing medical benefits to September 11 emergency responders and New York residents medically impacted by the September 11 attacks. The intent and purpose of the Act have been consistently supported and lauded. Funding of the program, however, has been a topic of controversy. The project requires $4.3 billion. Both the excise tax and the Joint Committee's conclusions about the revenue-raising ability of the tax drew immediate criticism from members of the business, procurement, and academic communities. Section 301 of the Act has potentially exposed the US and its federal contractor industry to serious international repercussions. Section 301's supporters have touted the deficit reduction effect of the tax in order to justify its implementation.