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SUMMARY TABLES (Dollar amounts in billions) 2006 2007 2008 2009 2010 2011 2012 Budget Totals: Receipts ................................................................. Outlays ................................................................... Deficit(–)/Surplus(+) ..................................... 2,407 2,655 248 2,540 2,784 244 2,662 2,902 239 2,798 2,985 187 2,955 3,049 94 3,104 3,157 54 3,307 3,246 +61 Gross Domestic Product (GDP) ........................ 13,061 13,761 14,515 15,306 16,112 16,938 17,786 Receipts ................................................................. Outlays ................................................................... 18.4% 20.3% 18.5% 20.2% 18.3% 20.0% 18.3% 19.5% 18.3% 18.9% 18.3% 18.6% 18.6% 18.3% Deficit(–)/Surplus(+) ...................................... 1.9% 1.8% 1.6% 1.2% 0.6% 0.3% THE BUDGET FOR FISCAL YEAR 2008 Table S–1. Budget Totals +0.3% Budget Totals as a Percent of GDP: 151 152 Table S–2. Discretionary Funding by Category (Net budget authority; dollar amounts in billions) 2006 2007 2008 Actual Current Law 1 Request Change from 2007 Dollar Percent Base Discretionary: Security Funding 2 .................................................................................... Non-Security Funding.............................................................................. 474.2 369.1 500.4 372.4 553.9 375.9 +53.5 +3.6 10.7% 1.0% Total, Discretionary ................................................................................... 843.4 872.8 929.8 +57.0 6.5% Enacted Supplemental and Emergency Funding: Global War on Terror ................................................................................ Hurricane Response ................................................................................ Pandemic Influenza Preparedness..................................................... Border Security and Other ..................................................................... 120.4 24.7 6.1 2.2 70.0 0.2 — 1.8 153.3 72.0 Total, Enacted .............................................................................................. Requested Supplemental and Emergency Funding: Global War on Terror ................................................................................ Hurricane Response ................................................................................ 99.6 3.4 103.0 Total, Requested ......................................................................................... 145.2 — 145.2 Discretionary Outyears (Net budget authority in billions of dollars) 2009 1 2 3 4 2011 2012 581.1 379.7 964.7 597.0 383.4 980.4 604.6 387.3 991.9 615.0 391.2 1,006.2 50.0 Base funding levels are equal to the amounts enacted in the 2007 Department of Defense and Homeland Security Acts with other Government operations equal to the estimated full-year funding levels provided by P.L. 109-289, Division B, as amended. These levels are adjusted to reflect the current congressional discretionary topline of $872.8 billion, with the funding difference allocated among the categories. This category is comprised of funding for the Department of Defense, homeland security activities Government-wide (see Table S-4), and funding for international affairs (Function 150). Department of Defense levels are consistent with the Future Years Defense Plan, and the homeland security levels are consistent with the Future Years Homeland Security Plan. These amounts exclude the budgetary effects of the Administration’s reauthorization proposal of the Federal Aviation Administration (FAA). That proposal would transform the current tax-financing system for FAA to a cost-based user-fee system. For more information, see the Transportation chapter in this volume and related sections in the Appendix and Analytical Perspectives volumes of the Budget. If this proposal were enacted, the Administration would adjust its discretionary cap proposal downward in these years to reflect the offsetting collections that would result from this user-based fee system. SUMMARY TABLES Base Discretionary: Security Funding 3 ......................................................... Non-Security Funding 4 ............................................... Total, Discretionary ......................................................... Supplemental and Emergency Funding: Global War on Terror ..................................................... 2010 (Net budget authority in billions of dollars) 2006 Agency Agriculture...................................................................................................................... Commerce ..................................................................................................................... Defense .......................................................................................................................... Education ....................................................................................................................... Energy ............................................................................................................................. Health and Human Services ................................................................................... Homeland Security ..................................................................................................... Housing and Urban Development ......................................................................... Interior ............................................................................................................................. Justice ............................................................................................................................. Labor................................................................................................................................ State and Other International Programs............................................................. Transportation............................................................................................................... Treasury .......................................................................................................................... Veterans Affairs ............................................................................................................ Corps of Engineers .................................................................................................... Environmental Protection Agency ......................................................................... Executive Office of the President .......................................................................... Judicial Branch ............................................................................................................. Legislative Branch....................................................................................................... National Aeronautics and Space Administration ............................................. National Science Foundation .................................................................................. Small Business Administration ............................................................................... Social Security Administration................................................................................ Other Agencies ............................................................................................................ Total, Discretionary Spending ............................................................................... Actual 2007 Request 2008 Current Law 1 Request 21.1 6.4 410.7 56.5 23.6 69.1 30.7 34.1 10.8 21.1 11.3 30.2 14.6 11.4 32.9 5.3 7.6 0.3 5.3 3.8 16.3 5.6 0.5 7.4 6.7 19.7 6.1 439.3 54.4 23.6 67.6 30.9 33.6 10.5 19.5 10.9 33.9 13.2 11.6 35.7 4.7 7.3 0.3 5.9 4.3 16.8 6.0 0.6 7.9 6.7 19.6 5.6 429.6 56.0 22.8 69.1 32.0 34.7 10.3 19.4 11.7 28.7 10.7 11.4 33.2 4.7 7.5 0.3 5.3 3.7 16.2 5.6 0.4 7.6 6.5 20.2 6.6 481.4 56.0 24.3 69.3 34.3 35.2 10.6 20.2 10.6 35.0 12.1 12.1 39.4 4.9 7.2 0.3 6.1 4.4 17.3 6.4 0.5 7.9 7.5 843.4 871.0 852.8 THE BUDGET FOR FISCAL YEAR 2008 Table S–3. Discretionary Funding by Major Agency 929.8 Note: Amounts exclude enacted and requested supplemental and emergency funding. Funding levels are equal to the amounts enacted in the 2007 Department of Defense and Homeland Security Acts with other Government operations equal to the estimated full-year funding levels provided by P.L. 109-289, Division B, as amended. 1 153 154 Table S–4. Homeland Security Funding by Agency (Budget authority in millions of dollars) 2006 Actual 1 2 3 4 598 181 16,477 1,701 4,352 25,156 2,996 1,107 114 182 299 129 99 56 213 344 79 83 176 296 54,638 16,477 2,257 3,514 32,390 Supplemental/ Emergency — — 1,031 — — 1,416 30 — 1 — — — — — — — — — — — 2,478 1,031 — — 1,447 Current Law 1 523 1,193 16,538 1,695 4,313 26,876 3,090 1,239 109 179 245 133 74 56 199 344 66 80 194 256 57,402 16,538 3,489 4,397 32,978 2008 Supplemental/ Emergency 2 Request — — — — — 1,816 96 — 3 — — — — — — — — — — — 1,915 — — — 1,915 718 219 17,465 1,833 4,424 29,671 3,331 1,406 117 200 270 153 42 58 194 375 69 93 217 256 61,111 17,465 2,290 4,986 36,370 Supplemental/ Emergency 2 — — — — — 223 85 — — — — — — — — — — — — — 308 — — — 308 Funding levels are equal to the amounts enacted in the 2007 Department of Defense and Homeland Security Acts with other levels equal to the estimated full-year funding levels provided by P.L. 109-289, Division B, as amended. Includes $1.7 billion in funding enacted in the 2007 Homeland Security and Defense Acts. 2007 and 2008 also include an additional $0.2 billion and $0.3 billion, respectively, in the Administration’s pending supplemental requests for the Global War on Terror. For more detail on homeland security funding, consult the Homeland Security Funding Analysis chapter in the Analytical Perspectives volume of the Budget. Dollar amounts in this table are rounded to the nearest million at the account level, which accounts for any discrepancies with the Analytical Perspectives chapter. Mandatory homeland security programs include $1 billion from anticipated spectrum auction receipts provided in the Deficit Reduction Act of 2005 for the Department of Commerce to make grants to public safety agencies for communications interoperability purposes. SUMMARY TABLES Homeland Security Funding: 3 Agriculture............................................................................. Commerce ............................................................................ Defense (DOD) ................................................................... Energy .................................................................................... Health and Human Services .......................................... Homeland Security ............................................................ Justice .................................................................................... State........................................................................................ Treasury ................................................................................. Transportation...................................................................... Veterans Affairs ................................................................... Environmental Protection Agency ................................ General Services Administration .................................. Intelligence Community Management Account ...... National Aeronautics and Space Administration .... National Science Foundation ......................................... Nuclear Regulatory Commission.................................. Smithsonian Institution ..................................................... Social Security Administration....................................... Other Agencies ................................................................... Total, Homeland Security Funding ............................. Less, Defense-Military (DOD) ....................................... Less, Mandatory Homeland Security Funding 4 ... Less, Discretionary Fee-Funded Activities ............... Net Non-DOD Discretionary Homeland Security . 2007 (In millions of dollars) 2007 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 Mandatory Proposals, including Savings and Augmentations: Agriculture: Reauthorize Farm Bill ...................................... Reauthorize Food Stamp Program: Restrict Food Stamp Categorical Eligibility ....................................................... Exclude retirement accounts from Food Stamp asset test ....................................... Exclude special military pay from Food Stamp income test ................................... Food Safety and Inspection Service User Fees ................................................................... Grain Inspection, Packers and Stockyards Administration User Fees ........................... Crop Insurance User Fee ............................... 500 500 500 500 500 2,500 5,000 — 63 132 136 139 141 611 1,360 — 44 89 138 141 144 556 1,323 — 1 1 1 1 1 5 10 — 96 98 100 102 104 500 1,053 Animal Welfare Fee........................................... Total, Agriculture ............................................ — — — — 22 — 9 355 22 15 13 310 23 15 13 352 23 15 14 349 24 15 14 347 115 60 63 1,712 242 135 142 3,401 Defense: Increase National Defense Strategic Materials Stockpile Sales ........................... — 69 145 198 145 25 582 583 — 532 2,375 3,256 4,133 5,039 15,335 43,058 — 72 308 373 317 8 1,078 1,078 — 68 151 187 205 259 870 2,550 Education: Reform the Federal Student Aid Programs: Increase the Pell Grant Maximum Award to $5,400 over Five Years ........ Increase Academic Competitiveness Grant awards by 50 percent ................. Increase Aggregate Loan Limits and Annual Limits for Undergraduate Third-Year and Beyond Students ........ 155 — THE BUDGET FOR FISCAL YEAR 2008 Table S–5. Mandatory Proposals 156 Table S–5. Mandatory Proposals—Continued (In millions of dollars) 2007 Reduce Lender Subsidy Payments by 50 basis points........................................... Increase Lender Risk Sharing and Improve Program Efficiency .................. Increase Lender Consolidation Fee ....... Recall Federal Perkins Loan Revolving Funds ............................................................ Adjust Guaranty Agency Default Retention Rates ........................................ Adopt Unit Cost Basis for Guaranty Agency Fees............................................... Other Student Loan Reforms .................... Net impact ................................................... Energy: Repeal Oil and Gas Research and Development Program ................................ Health and Human Services (HHS): Adopt Medicare Reforms ................................ Medicaid/State Children’s Health Insurance Program (SCHIP): Adopt Medicaid Reforms ............................ Augment Medicaid ........................................ Reduce Social Services Block Grant ......... Temporary Assistance for Needy Families (TANF) ............................................................... Title V Abstinence Education Program ...... Food and Drug Administration Re-Inspection and Export Certification Fees ................................................................... 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 688 2,165 2,558 2,792 2,986 11,189 29,494 — — 776 56 160 159 175 186 189 210 202 234 1,502 845 2,715 2,309 — 419 498 713 814 779 3,223 6,358 — 1,370 173 188 205 217 2,153 3,454 — — 1,018 2 37 3 53 12 58 22 56 64 1,222 93 1,572 913 — 3,653 355 68 364 768 2,944 128 — 20 40 50 50 50 210 460 — 4,696 9,113 13,077 17,463 21,695 66,044 252,432 — 35 — 35 — –1,925 885 710 330 — –2,170 205 1,095 870 425 –2,385 — 620 1,765 495 –2,680 — 890 1,790 500 –2,850 — 845 2,005 500 –12,010 1,090 4,160 6,760 1,920 –29,090 1,090 9,680 18,320 4,420 — 5 — 25 240 44 296 49 309 50 326 50 1,171 218 2,768 468 — 27 28 28 29 30 142 302 SUMMARY TABLES Reauthorize SCHIP ...................................... Net Impact ................................................... 2008 (In millions of dollars) 2007 Foster Care District of Columbia Federal Medical Assistance Percentage Rate .... Foster Care Child Welfare Program Option ................................................................ Child Support Enforcement............................ 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 5 5 6 5 6 27 62 — — 40 8 5 5,010 5 8 10,134 4 6 15,012 44 1 19,373 47 1 23,896 6 19 73,425 1 4 272,173 — 46 46 46 46 46 230 460 Total, HUD ....................................................... Interior: Arctic National Wildlife Refuge Lease Bonuses: State of Alaska’s Share: Receipts ....................................................... — — 6 52 6 52 6 52 6 52 6 52 30 260 60 520 — — Expenditures .............................................. — — 3,502 3,502 2 2 503 503 3 3 4,010 4,010 4,025 4,025 — — — — 3,502 3,502 2 2 503 503 3 3 4,010 4,010 4,025 4,025 — — 20 55 80 100 100 355 855 41 47 46 44 49 227 447 — 5 28 40 70 44 186 334 — — — 36 23 14 37 23 17 38 23 17 36 23 17 37 23 17 184 115 82 THE BUDGET FOR FISCAL YEAR 2008 Table S–5. Mandatory Proposals—Continued 309 230 167 Total, HHS ........................................................ Housing and Urban Development (HUD): Ginnie Mae Premium Increase ..................... Government-Sponsored Enterprises Oversight Fee ................................................. Federal Share: Receipts ....................................................... Net Impact .............................................. Match National Park Centennial Challenge Fund Gift Receipts .................. Return to Net Receipts Sharing ................... Amend Bureau of Land Management (BLM) Federal Land Sale Authority ........ Repeal Energy Policy Act Fee Prohibition and Mandatory Permit Funds ................... Recover Pick-Sloan Project Cost ................. Implement Friant Settlement ......................... 157 158 Table S–5. Mandatory Proposals—Continued (In millions of dollars) 2007 Eliminate BLM Range Improvement Fund ................................................................... Require Upfront Payment of Coal Bonus Bids .................................................................... Total, Interior ................................................... Labor: Reform Pension Benefit Guaranty Corporation Premiums ................................ Unemployment Insurance Integrity Proposal 1 ....................................................... Reform Federal Employees’ Compensation Act ........................................ Reauthorize Trade Adjustment Assistance ....................................................... Total, Labor ...................................................... Treasury: Payment Transaction Integrity ....................... Extend the Rum Carryover for Puerto Rico .................................................................... Debt Collection: Eliminate the 10-year Statute of Limitations on Non-tax Debt owed to Federal Agencies ......................... Total, Treasury ........................................... 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 7 10 10 10 10 47 97 — — 2 80 121 3,696 115 177 54 623 134 183 426 4,758 4 4,416 — — 1,390 1,387 1,400 1,295 5,472 10,569 — — 484 494 351 355 1,684 3,619 — 9 23 29 33 43 137 493 — — — 6 18 24 25 73 123 9 1,891 1,892 1,760 1,668 7,220 14,558 — 273 281 290 298 306 1,448 3,105 — 76 26 — — — 102 102 — — 11 208 6 261 6 296 6 304 6 312 35 1,381 65 3,068 — 311 304 306 307 342 1,570 3,352 — — 138 134 129 125 526 1,094 — — 44 355 44 486 44 484 43 479 43 510 218 2,314 421 4,867 SUMMARY TABLES Veterans Affairs: Pharmacy Co-Payments ................................. Income-Based Medical Care Enrollment Fee ..................................................................... Third-Party Insurance Co-Payment Offset ................................................................. Total, Veterans Affairs .................................. 2008 (In millions of dollars) 2007 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 Army Corps of Engineers: Additional Recreation User Fees, Lease Receipts, and Contributions: Receipts ....................................................... Spending...................................................... — — 7 — 10 7 13 10 16 13 19 16 65 46 192 164 Net effect ................................................. Commodity Futures Trading Commission: — 7 3 3 3 3 19 28 User Fees ............................................................. Environmental Protection Agency: Pesticide and Pre-Manufacturing Notification fees ............................................. Federal Communications Commission (FCC): Spectrum License Fee Authority .................. Auction Prospective Ancillary Terrestrial Component Spectrum ................................. Extend Spectrum Auction Authority ............ Auction Domestic Satellite Spectrum ......... Eliminate Telecommunications Development Fund ....................................... — 86 89 92 95 99 461 1,009 — 70 65 68 74 65 342 682 — 50 150 300 300 400 1,200 3,628 — — 130 150 — 252 150 — 105 150 — 100 150 — 100 150 200 75 750 200 632 1,500 1,200 690 — 130 5 457 6 411 7 557 7 557 7 832 32 2,814 67 7,085 — 38 140 240 318 382 1,118 3,595 — 3 8 11 14 17 53 162 — — 1 36 1 133 1 230 1 303 4 361 2 1,063 THE BUDGET FOR FISCAL YEAR 2008 Table S–5. Mandatory Proposals—Continued 109 3,324 Total, FCC ........................................................ Office of Personnel Management (OPM): Federal Employees Health Benefits Program Proposals ....................................... Improve Equity and Administration of the Federal Retirement System....................... Replace Non-Foreign Cost of Living Adjustment with Locality Pay .................... Total, OPM .................................................. 159 160 Table S–5. Mandatory Proposals—Continued (In millions of dollars) 2007 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 56 55 55 — — 166 166 Total, Mandatory Proposals, including Savings and Augmentations ................ 90 9,700 17,396 18,773 23,106 26,940 95,915 309,334 Social Security Personal Accounts (Off-Budget) .......................................................... — — — — — 29,348 29,348 637,441 Outlay Effects of Tax Proposals: 1 Improve the Health Coverage Tax Credit ...... — 4 10 12 14 15 55 139 — 55 59 75 71 72 332 785 — — 375 388 400 417 1,580 3,773 — 127 137 174 165 169 772 1,824 Simplify EITC eligibility requirement regarding filing status, presence of children, and work and immigration status ................................................................. — 210 33 17 17 14 129 104 Provide a flat $15,000 deduction for family coverage ($7,500 for individual coverage) for those with and who purchase health insurance ........................ Total, Outlay Effects of Tax Proposals — — — 388 231 297 4,629 4,021 4,705 4,100 4,715 4,086 14,280 11,522 37,886 31,539 Child Tax Credit: Clarify uniform definition of a child .............. Reduce computational complexity of refundable child tax credit .......................... Earned Income Tax Credit (EITC): Clarify uniform definition of a child .............. SUMMARY TABLES Social Security Administration: Temporarily Extend Length of Time-Limited Supplemental Security Income Eligibility for Refugees ................. (In millions of dollars) 2007 Other Mandatory Proposals and Indirect Effects: Transfer of Royalty Oil to the Strategic Petroleum Reserve ........................................... Disability Insurance Impact of Increased Program Integrity Efforts ................................. Supplemental Security Income Impact of Increased Program Integrity Efforts ............ Enforce Windfall Elimination Provision / Government Pension Offset (off-budget) .. Require Full-time Attendance for Child’s Social Security Benefits at Age 16 (off-budget) .......................................................... Replace Disability Insurance/Worker’s Comp Offset with Uniform Offset (off-budget) .......................................................... Amend Federal Employee Health Benefits Program Statute ................................................. Unemployment Insurance Integrity Proposal 1 ............................................................ National Park Centennial Challenge Fund (spending of gift receipts) 1 ........................... Food Stamp Impact of Commodity Supplemental Food Program Elimination . 2009 2010 2011 Total 2012 2008–2012 2008–2017 — — — 903 — — 903 10,873 — 17 124 360 586 634 1,721 4,536 — 14 385 856 1,061 355 2,671 3,352 — — — — 142 311 453 2,531 — 11 87 157 163 169 587 1,551 — 4 32 77 139 218 470 1,085 — 27 89 147 196 230 689 2,163 — — 58 122 126 130 436 1,184 — 20 55 80 100 100 355 855 — 44 55 48 44 41 232 396 — — 2 10 8 10 15 10 23 10 31 10 79 50 361 100 9 13 16 16 15 7 67 76 161 Impact of Replacing Non-Foreign Cost of Living Adjustment with Locality Pay on Civil Service Retirement and Disability Fund ....................................................................... Cash Investment Practices Modernization ... Federal Housing Administration General and Special Risk Insurance Funds Impact of Mark-to-Market Extension ......................... 2008 THE BUDGET FOR FISCAL YEAR 2008 Table S–5. Mandatory Proposals—Continued 162 Table S–5. Mandatory Proposals—Continued (In millions of dollars) 2007 Morris K. Udall Scholarship Fund .................... Forest County Safety Net Payments ............... Correct Trust Accounting Deficiencies in Individual Indian Money Investments ......... TANF Impact of Social Services Block Grant Reduction ............................................................. Black Lung Disability Trust Fund Refinancing: 1 Black Lung Disability Trust Fund .................. Interest Payments on Repayable Advances ......................................................... Net Impact ....................................................... Foreign Labor Certification Fee: Receipts ................................................................ Spending............................................................... Net effect .......................................................... Total, Other Mandatory Proposals and Indirect Effects .............................. Grand Total ................................................................ Total .................................................................... 1 2009 2010 2011 Total 2012 2008–2012 2008–2017 2 — 2 467 2 135 2 118 2 57 2 143 10 14 20 — 6 — — — — — — — — 43 50 8 43 50 8 — — 2,315 437 432 424 424 598 3,089 — 2,315 437 432 424 424 598 3,089 — — — — — — — — — — — 65 65 — 65 65 — 65 65 — 65 65 — 65 65 — 325 325 — 650 650 — 1 402 334 307 1,909 1,399 4,351 469 91 10,490 18,029 15,058 20,910 5,098 59,389 359,191 — — — — 46 11,937 11,983 70,652 — — — — — — — — 366 320 1,623 13,560 1,257 13,240 8,966 79,618 Affects both receipts and outlays. Only the outlay effect is shown here. For receipt effects, see Table S-6. SUMMARY TABLES Memorandum: Outlay Effects of Tax Extensions Assumed in Baseline: 1 Child Tax Credit Extension ............................. Earned Income Tax Credit: Marriage Penalty Relief.................................................. 2008 (In millions of dollars) 2007 2008 2009 2010 2011 2012 Total 2008–2012 2008–2017 Make Permanent Certain Tax Relief Enacted in 2001 and 2003 (assumed in baseline): 344 — — — 683 — — — 695 — — — 3,595 3,405 3,728 — 13,789 17,477 4,947 71,892 1,491 7,269 3,376 113,251 14,515 28,151 12,051 185,143 89,973 79,059 20,158 793,780 Child tax credit 1 ........................................................................... Marriage penalty relief 1 ............................................................. — — — — — — — — 5,265 5,380 21,128 7,971 26,393 13,351 135,380 41,317 Education incentives .................................................................... Repeal of estate and generation-skipping transfer taxes, and modification of gift taxes ................................................ — — — — 739 1,336 2,075 9,673 156 — 1,373 — 2,290 — 3,067 6 26,845 179 57,652 866 91,227 1,039 442,490 5,341 188 690 1,595 13,789 146,513 211,358 373,945 1,617,171 Tax Incentives: Simplify and encourage saving: Expand tax-free savings opportunities ............................. Consolidate employer-based savings accounts ............ Total, simplify and encourage saving ....................... Encourage entrepreneurship and investment: Increase expensing for small business ............................. — — — 1,527 80 1,447 3,545 120 3,425 3,023 132 2,891 1,075 141 934 1,314 150 1,464 7,856 623 7,233 592 1,484 2,076 — 1,597 2,180 1,541 1,135 847 7,300 10,095 Invest in health care: Provide a flat $15,000 deduction for family coverage ($7,500 for individual coverage) for those with and who purchase health insurance 1 .................................. Expand and make health savings accounts (HSAs) more flexible ........................................................................... Improve the Health Coverage Tax Credit 1 ..................... — — 31,433 38,892 30,843 20,033 121,201 5,150 — — 318 1 593 3 784 4 937 5 1,037 5 3,669 18 10,366 51 Other incentives for families and children ............................ Total, make permanent certain tax relief enacted in 2001 and 2003.................................................................. 163 Dividends tax rate structure ...................................................... Capital gains tax rate structure ................................................ Expensing for small business ................................................... Marginal individual income tax rate reductions .................. THE BUDGET FOR FISCAL YEAR 2008 Table S–6. Effect of Proposals on Receipts 164 Table S–6. Effect of Proposals on Receipts—Continued (In millions of dollars) 2007 Allow the orphan drug tax credit for certain pre-designation expenses ................................................. Protect the environment: Extend permanently expensing of brownfields remediation costs ................................................................. 2009 2010 2011 Total 2012 2008–2012 2008–2017 — — — 319 — 32,029 — 39,680 — 31,785 — 21,075 — 124,888 1 5,268 — 120 255 235 171 147 928 1,867 — 44 96 106 116 127 489 1,345 — 50 118 147 154 162 631 1,570 — 48 35 22 18 21 144 265 — 3 15 21 25 28 92 301 — 61 91 97 103 110 462 1,163 — 2 3 9 13 14 41 104 — — 2 330 5 618 10 647 17 617 24 633 58 2,845 286 6,901 — 18 180 183 185 188 754 1,739 — — 63 81 163 343 176 359 189 374 200 388 791 1,545 1,966 3,705 61 244 400 352 342 331 1,669 2,851 SUMMARY TABLES Total, invest in health care ............................................ Provide incentives for charitable giving: Permanently extend tax-free withdrawals from IRAs for charitable contributions................................................ Permanently extend enhanced charitable deduction for contributions of food inventory .................................. Extend permanently the deduction for corporate donations of computer technology................................. Permanently increase limits on contributions of property interests made for conservation purposes Permanently extend basis adjustment to stock of S corporations contributing appreciated property ........ Reform excise tax based on investment income of private foundations .............................................................. Repeal the $150 million limitation on qualified 501(c)(3) bonds .................................................................... Repeal certain restrictions on the use of qualified 501(c)(3) bonds for residential rental property .......... Total, provide incentives for charitable giving ........ Strengthen education: Extend permanently the above-the-line deduction for qualified out-of-pocket classroom expenses .............. Allow the saver’s credit for contributions to qualified tuition programs .................................................................... Total, strengthen education .......................................... 2008 (In millions of dollars) 2007 Eliminate the volume cap for private activity bonds for water infrastructure .............................................................. Total, protect the environment..................................... Restructure assistance to New York City for continued recovery from the attacks of September 11th: Provide tax incentives for transportation infrastructure 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 61 1 245 3 403 5 357 9 351 13 344 31 1,700 184 3,035 — 200 200 200 200 200 1,000 2,000 61 1,325 32,348 39,893 33,528 24,951 132,045 33,080 17 64 48 31 40 15 198 350 — 31 25 22 22 21 59 164 — 17 — 95 — 23 — 9 — 18 — 6 — 139 — 186 Expand penalties........................................................................... Total, improve tax compliance.............................................. — — — — — 232 143 — 3 378 1,075 91 — 5 1,171 1,848 38 1 11 1,898 2,488 21 1 18 2,528 2,903 20 1 20 2,944 8,546 313 3 57 8,919 28,849 421 17 178 29,465 Improve Tax Administration and Other Miscellaneous Proposals: Implement IRS administrative reforms and extend IRS authority to fund undercover operations 5 ....................... — — — — — — — THE BUDGET FOR FISCAL YEAR 2008 Table S–6. Effect of Proposals on Receipts—Continued — Total, tax incentives......................................................... Simplify the Tax Laws for Families: Clarify uniform definition of a child 1 ...................................... Simplify EITC eligibility requirement regarding filing status, presence of children, and work and immigration status 1 ................................................................. Reduce computational complexity of refundable child tax credit 1 ................................................................................... Total, simplify the tax laws for families ............................. Improve Tax Compliance: 2 Expand information reporting ................................................... Improve compliance by businesses ....................................... Strengthen tax administration ................................................... 165 166 Table S–6. Effect of Proposals on Receipts—Continued (In millions of dollars) 2007 Eliminate the special exclusion from unrelated business taxable income for gain or loss on the sale or exchange of certain brownfields ......................................... Limit related party interest deductions .................................. Repeal excise tax on local telephone service 3 ................ Modify financing of the Airport and Airway trust fund 3 .. 2008 2009 2010 2011 Total 2012 2008–2012 2008–2017 — 86 552 — 2 148 463 — 14 155 148 6,407 28 163 74 6,705 28 171 74 7,005 23 180 74 7,326 95 817 833 27,443 126 1,859 1,211 69,732 — 100 100 100 100 100 500 1,000 Anticipated receipt of donations to the National Park Service through the National Park Centennial Challenge Fund ......................................................................... Transition from the non-foreign COLA to locality pay for employees in non-foreign areas .......................................... Total, improve tax administration and other miscellaneous proposals 2 ........................................... — 1 2 3 4 5 15 50 466 212 6,284 6,485 6,776 7,092 26,849 67,908 Improve Unemployment Insurance: Strengthen the financial integrity of the unemployment insurance system by reducing improper benefit payments and tax avoidance 3 ............................................ Extend unemployment insurance surtax 3 .......................... Total, improve unemployment insurance 3 ....................... — — — — 1,073 1,073 29 1,542 1,571 29 1,580 1,609 16 1,617 1,601 64 1,633 1,569 22 7,445 7,423 1,469 1,526 57 — 52 88 107 119 106 472 906 — — 15 55 81 67 56 274 582 Total, modify energy provisions ...................................... — 45 22 93 50 163 25 92 94 98 64 491 255 1,019 469 Promote Trade: Implement free trade agreements and modify other trade-related provisions 3 ..................................................... — 241 502 760 994 1,240 3,737 13,072 SUMMARY TABLES Modify Energy Provisions: Repeal reduced recovery period for natural gas distribution lines ........................................................................ Modify amortization for certain geological and geophysical expenditures ...................................................... Indirect effect of energy proposals 4 ..................................... (In millions of dollars) 2007 2010 2011 Total 2008 2009 2012 9,123 — — — — 47,922 3,221 71 1 3 11,431 7,071 192 19 8 — 9,145 162 — 13 — 10,601 80 — 18 — 11,799 51 — 20 36,491 41,837 556 20 62 36,491 117,309 582 20 162 63 48 52 65 39 5 199 41 — — — — — — — — — — — — — — — 1,081 * 9,186 * 51,266 * 4,089 * 9,385 * 10,738 * 11,865 * 79,165 * 153,442 9,386 52,166 33,825 66,771 194,308 251,935 599,005 1,854,496 9,574 51,476 32,230 52,982 47,795 40,577 225,060 237,325 2008–2012 2008–2017 Extend Expiring Provisions: Alternative Minimum Tax relief for individuals ................... Research & Experimentation (R&E) tax credit ................... Work opportunity tax credit ...................................................... First-time homebuyer credit for DC ........................................ Authority to issue Qualified Zone Academy Bonds .......... Deferral of gains from sales of electric transmission property ........................................................................................ Disclosure of tax return information related to terrorist activity 5 ...................................................................................... Excise tax on coal .................................................................... Exception for retirement plan distributions provided individuals called to active duty for at least 179 days.. Total, extend expiring provisions 3 ................................. 3 Total budget proposals, including proposals assumed in the baseline 3 ................................................. Total budget proposals, excluding proposals assumed in the baseline 3 ................................................. THE BUDGET FOR FISCAL YEAR 2008 Table S–6. Effect of Proposals on Receipts—Continued *$500,000 or less. 1 Affects both receipts and outlays. Only the receipt effect is shown here. For the outlay effect, see Table S-5. 2 “Tax gap”-related proposals. 3 Net of income offsets. 4 Indirect effect on receipts of proposed alternative fuels and fuel efficiency standards. These proposals are discussed in the Energy chapter of the Budget volume. 5 No net budgetary impact. 167 168 Table S–7. Budget Summary by Category (In billions of dollars) 2006 2007 2008 2009 2010 2011 2012 Outlays: Discretionary: Security .............................................................. Non-security ..................................................... 566 451 622 458 658 456 655 443 617 439 609 436 603 435 Total, discretionary .................................... Mandatory: 1,017 1,080 1,114 1,099 1,056 1,045 1,039 Net interest............................................................ Total outlays .............................................................. Receipts...................................................................... Deficit(–)/surplus(+) ........................................... 544 — 325 186 357 1,412 227 2,655 2,407 248 582 — 367 198 318 1,465 239 2,784 2,540 244 608 — 386 209 324 1,527 261 2,902 2,662 239 640 — 409 223 340 1,613 274 2,985 2,798 187 678 — 434 239 361 1,712 281 3,049 2,955 94 717 — 475 257 380 1,829 284 3,157 3,104 54 761 29 482 277 374 1,923 285 3,246 3,307 61 On-budget deficit ................................................ Off-budget surplus.............................................. 434 186 427 183 451 212 413 226 339 245 318 264 187 248 Social Security: Current program ......................................... Personal accounts ..................................... Medicare............................................................ Medicaid and SCHIP .................................... Other ................................................................... Total, mandatory ........................................ SUMMARY TABLES (In billions of dollars) 2006 Actual Estimate 2007 2008 2009 2010 2011 2012 Individual income taxes ............................................................... Corporation income taxes .......................................................... Social insurance and retirement receipts ............................. 1,043.9 353.9 837.8 1,168.8 342.1 873.4 1,246.6 314.9 927.2 1,331.1 319.8 974.2 1,428.3 325.5 1,029.3 1,517.3 340.6 1,085.7 1,636.6 366.6 1,138.8 (On-budget) ................................................................................. (Off-budget) ................................................................................. (229.4) (608.4) (239.2) (634.1) (253.1) (674.1) (262.8) (711.4) (276.0) (753.3) (289.9) (795.8) (303.4) (835.3) Excise taxes .................................................................................... Estate and gift taxes ..................................................................... 74.0 27.9 57.1 25.3 68.1 25.7 63.1 27.4 63.6 21.7 68.6 1.7 71.3 0.5 Customs duties............................................................................... Miscellaneous receipts ................................................................ 24.8 45.0 26.8 46.7 29.2 50.7 30.7 52.0 32.7 53.6 34.3 55.5 35.7 57.8 THE BUDGET FOR FISCAL YEAR 2008 Table S–8. Receipts by Source—Summary Total receipts ........................................................................... 2,407.3 2,540.1 2,662.5 2,798.3 2,954.7 3,103.6 3,307.3 (On-budget) ............................................................................ (1,798.9) (1,906.0) (1,988.4) (2,086.9) (2,201.4) (2,307.8) (2,472.0) (Off-budget) ............................................................................ (608.4) (634.1) (674.1) (711.4) (753.3) (795.8) (835.3) 169 170 Table S–9. Comparison of Economic Assumptions (Calendar years) Projections 2007 2008 2009 2010 2011 Average 2007–2012 2012 13,946 13,805 13,843 14,711 14,472 14,561 15,507 15,196 15,323 16,316 15,923 16,116 17,148 16,647 16,937 18,003 17,395 17,805 Real GDP (chain-weighted): 1 2008 Budget...................................................................................... CBO January .................................................................................... Blue Chip Consensus January................................................... 2.7 2.3 2.4 3.0 3.0 3.0 3.1 3.1 3.1 3.0 3.0 3.0 3.0 2.7 2.9 2.9 2.7 3.0 3.0 2.8 2.9 Chain-weighted GDP Price Index: 1 2008 Budget...................................................................................... CBO January .................................................................................... Blue Chip Consensus January................................................... 2.5 1.9 2.1 2.4 1.8 2.1 2.2 1.8 2.1 2.1 1.8 2.1 2.0 1.8 2.1 2.0 1.8 2.1 2.2 1.8 2.1 Consumer Price Index (all-urban): 1 2008 Budget...................................................................................... CBO January .................................................................................... Blue Chip Consensus January................................................... 2.1 1.9 2.0 2.6 2.3 2.3 2.5 2.2 2.3 2.4 2.2 2.3 2.3 2.2 2.3 2.3 2.2 2.4 2.4 2.2 2.3 Unemployment rate: 2 2008 Budget...................................................................................... CBO January .................................................................................... Blue Chip Consensus January................................................... 4.6 4.7 4.8 4.8 4.9 4.9 4.8 5.0 4.9 4.8 5.0 4.9 4.8 5.0 4.9 4.8 5.0 4.9 4.8 4.9 4.9 Interest rates: 2 91-day Treasury bills: 2008 Budget ................................................................................. CBO January................................................................................ Blue Chip Consensus January .............................................. 4.7 4.8 4.9 4.6 4.5 4.8 4.4 4.4 4.7 4.2 4.4 4.5 4.1 4.4 4.5 4.1 4.4 4.6 4.4 4.5 4.7 10-year Treasury notes: 2008 Budget ................................................................................. CBO January................................................................................ Blue Chip Consensus January .............................................. 5.0 4.8 4.8 5.1 5.0 5.0 5.2 5.1 5.2 5.3 5.2 5.2 5.3 5.2 5.2 5.3 5.2 5.3 5.2 5.1 5.1 Sources: Congressional Budget Office; Blue Chip Economic Indicators, Aspen Publishers, Inc. January 2007 Blue Chip Consensus forecast for 2007 and 2008; Blue Chip October 2006 long-run extension for 2009—2012. 1 Year-over-year percent change. 2 Annual averages, percent. SUMMARY TABLES GDP (billions of current dollars): 2008 Budget...................................................................................... CBO January .................................................................................... Blue Chip Consensus January................................................... (Dollar amounts in billions) Estimate Actual 2006 2007 2008 2009 2010 2011 2012 Financing: Unified budget deficit ( )/surplus(+) ............................................................ 248 244 239 187 94 54 61 Financing other than borrowing from the public: Net purchases of non-Federal securities by the National Railroad Retirement Investment Trust ( ) .......................................................... 2 1 * * * 1 * Changes in: Treasury operating cash balance (–) .................................................. 16 7 — — — — — 1 Checks outstanding, etc. .................................................................... Seigniorage on coins ..................................................................................... Credit net financing disbursements (–): Direct loan financing accounts .............................................................. Guaranteed loan financing accounts .................................................. Total, financing other than borrowing from the public............... Total, requirement to borrow from the public ...................... 13 1 — 1 — 1 — 1 — 1 — 1 — 1 5 21 11 237 11 7 10 254 17 7 23 262 15 7 21 208 18 6 23 118 19 5 23 77 20 4 24 37 Change in debt held by the public................................................................. 237 254 262 208 118 77 37 Changes in Debt Subject to Statutory Limitation: Change in debt held by the public................................................................. Change in debt held by Government accounts ........................................ Change in other factors .................................................................................... Total, change in debt subject to statutory limitation ........................... 237 309 3 549 254 302 * 557 262 306 1 568 208 355 3 565 118 382 2 502 77 400 3 480 37 410 2 375 Debt Subject to Statutory Limitation, End of Year: Debt issued by Treasury ................................................................................... Adjustment for discount, premium, and coverage 3 .............................. Total, debt subject to statutory limitation 4 ........................................... 8,426 5 8,420 8,982 5 8,977 9,550 5 9,545 10,114 3 10,111 10,614 2 10,612 11,092 * 11,092 THE BUDGET FOR FISCAL YEAR 2008 Table S–10. Federal Government Financing and Debt 11,465 2 11,467 2 171 172 Table S–10. Federal Government Financing and Debt—Continued (Dollar amounts in billions) Actual 2006 Estimate 2007 2008 2009 2010 2011 2012 Debt Outstanding, End of Year: Gross Federal debt: 5 Debt issued by Treasury .............................................................................. Debt issued by other agencies .................................................................. 8,426 26 8,982 26 9,550 25 10,114 24 10,614 24 11,092 23 11,465 22 Total, gross Federal debt ......................................................................... Held by: 8,451 9,008 9,575 10,138 10,638 11,115 11,487 Debt held by Government accounts ........................................................ Debt held by the public 6 .............................................................................. 3,622 4,829 3,924 5,083 4,230 5,345 4,585 5,554 4,966 5,671 5,366 5,748 5,776 5,711 As a percent of GDP ................................................................................. 37.0% 36.9% 36.8% 36.3% 35.2% 33.9% 32.1% * $500 million or less. 1 A decrease in the Treasury operating cash balance (which is an asset) is a means of financing a deficit and therefore has a positive sign. An increase in checks outstanding (which is a liability) is also a means of financing a deficit and therefore also has a positive sign. 2 Besides checks outstanding, includes accrued interest payable on Treasury debt, uninvested deposit fund balances, allocations of special drawing rights, and other liability accounts; and, as an offset, cash and monetary assets (other than the Treasury operating cash balance), other asset accounts, and profit on sale of gold. 3 Consists mainly of Federal Financing Bank debt (which is not subject to limit), the unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds), and the unrealized discount on Government account series securities. 4 The statutory debt limit is $8,965 billion, enacted on March 20, 2006. 5 Treasury securities held by the public and zero-coupon bonds held by Government accounts are almost all measured at sales price plus amortized discount or less amortized premium. Agency debt securities are almost all measured at face value. Treasury securities in the Government account series are otherwise measured at face value less unrealized discount (if any). 6 At the end of 2006, the Federal Reserve Banks held $768.9 billion of Federal securities and the rest of the public held $4,060.0 billion. Debt held by the Federal Reserve Banks is not estimated for future years. SUMMARY TABLES