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SUMMARY TABLES (Dollar amounts in billions) 2004 2005 2006 2007 2008 2009 2010 Budget Totals: Receipts ....................................................... Outlays ......................................................... Deficit ..................................................... 1,880 2,292 412 2,053 2,479 427 2,178 2,568 390 2,344 2,656 312 2,507 2,758 251 2,650 2,883 233 2,821 3,028 207 Gross Domestic Product (GDP) .............. 11,553 12,227 12,907 13,617 14,349 15,111 15,906 Budget Totals as a Percent of GDP: Receipts ....................................................... Outlays ......................................................... Deficit ..................................................... 16.3% 19.8% 3.6% 16.8% 20.3% 3.5% 16.9% 19.9% 3.0% 17.2% 19.5% 2.3% 17.5% 19.2% 1.7% 17.5% 19.1% 1.5% 17.7% 19.0% 1.3% THE BUDGET FOR FISCAL YEAR 2006 Table S–1. Budget Totals 343 344 Table S–2. Discretionary Totals (Net budget authority; dollar amounts in billions) Actual 2001 2002 2003 2006 2005 Enacted Request 2004 303 10 331 644 328 13 351 691 365 24 370 758 376 28 386 790 400 31 391 823 419 32 389 840 Percent change by category: Department of Defense ............................................................................ Homeland Security (non-Department of Defense)......................... Other Operations of Government ......................................................... Total, Percent change.................................................................................... 5% 14% 15% 10% 8% 21% 6% 7% 11% 85% 5% 10% 3% 21% 4% 4% 6% 10% 1% 4% 5% 3% 1% 2% Enacted supplemental and emergency funding: Defense and Other Global War on Terror .............................................. Homeland Security (non-Department of Defense) ............................. Non-Defense, Non-Homeland .................................................................... Allowance for anticipated 2005 supplemental ...................................... 14 3 3 — 18 12 14 — 80 6 5 — 114 * 3 — 1 * 11 81 — — — — 20 44 91 117 93 — — — — 1 3 — 2006 2007 2008 2009 2010 419 32 389 840 443 34 389 866 462 35 389 887 482 37 389 908 492 39 389 920 Percent change by category: Department of Defense ............................................................................ Homeland Security (non-Department of Defense)......................... Other Operations of Government ......................................................... 6% 5% 0% 4% 5% 0% 4% 5% 0% 2% 5% 0% Total, Percent change.................................................................................... 3% 2% 2% 1% Total, Supplemental and emergency funding .................................... Memorandum: Budget authority enacted for Project BioShield .................................. Discretionary Outyears by Category: Department of Defense ................................................................................ Homeland Security (non-Department of Defense) ............................. Other Operations of Government.............................................................. Total, Discretionary budget authority .................................................... *$500 million or less. 19 1 3 18 SUMMARY TABLES Discretionary budget authority: Department of Defense ................................................................................ Homeland Security (non-Department of Defense) ............................. Other Operations of Government.............................................................. Total, Discretionary budget authority .................................................... 2005–2006 Dollar change (Net budget authority; dollar amounts in billions) Growth Actual Agency Agriculture................................................... Commerce .................................................. Defense ....................................................... Education .................................................... Energy .......................................................... Health and Human Services ................ Homeland Security .................................. Housing and Urban Development ...... Interior .......................................................... Justice .......................................................... Labor............................................................. State and International Assistance 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 ............... Social Security Administration............. Other Agencies ......................................... Total, Discretionary Spending ............ 2001 2002 Estimate 2003 2004 2005 2006 2005–2006 Average Cumulative Change Percent 2001–2006 2001–2006 19.2 5.1 302.5 40.1 20.0 54.0 14.0 28.4 10.3 18.4 11.9 20.1 5.4 327.8 48.5 20.9 59.5 15.7 29.4 10.5 18.6 12.1 21.7 5.6 365.3 53.1 22.0 65.7 21.9 30.1 10.5 19.0 11.8 21.1 5.8 375.7 55.7 23.4 69.2 27.9 32.0 10.7 19.5 11.8 21.4 6.3 400.1 56.6 23.9 69.2 29.0 32.2 10.8 20.2 12.0 19.4 9.4 419.3 56.0 23.4 68.9 29.3 28.5 10.6 19.1 11.5 2.0 3.1 19.3 0.5 0.5 0.3 0.3 3.7 0.1 1.1 0.5 9.6% 49.0% 4.8% 0.9% 2.0% 0.5% 1.2% 11.5% 1.1% 5.5% 4.4% 0.1% 13.0% 6.7% 6.9% 3.2% 5.0% 16.0% 0.1% 0.7% 0.8% 0.7% 0.7% 84.5% 38.6% 39.8% 17.1% 27.5% 109.7% 0.5% 3.7% 3.9% 3.6% 20.3 14.6 10.3 22.4 4.7 7.8 0.3 4.0 2.8 21.7 12.8 10.5 23.8 4.5 7.9 0.3 4.3 3.0 22.8 13.5 10.7 26.4 4.6 8.1 0.3 4.6 3.4 25.0 13.9 10.7 29.1 4.6 8.4 0.3 4.8 3.6 27.5 12.7 11.2 30.6 4.7 8.0 0.3 5.1 3.6 31.8 11.8 11.6 31.3 4.3 7.6 0.3 5.6 4.1 4.3 0.9 0.4 0.7 0.3 0.5 0.0 0.5 0.5 15.7% 6.7% 3.9% 2.1% 7.2% 5.6% 1.7% 9.9% 13.7% 9.4% 4.1% 2.4% 6.9% 1.6% 0.7% 4.6% 7.1% 8.2% 56.4% 18.8% 12.7% 39.8% 7.6% 3.4% 25.5% 41.0% 48.1% 14.3 4.4 6.0 8.1 643.8 14.8 4.8 6.4 7.7 691.0 15.3 5.3 6.7 10.0 758.5 15.4 5.6 7.2 9.0 790.1 16.1 5.5 7.5 8.4 822.7 16.5 5.6 7.7 6.6 840.3 0.4 0.1 0.2 1.7 17.6 2.4% 2.4% 2.8% 20.8% 2.1% 2.9% 4.8% 4.9% 4.0% 5.5% THE BUDGET FOR FISCAL YEAR 2006 Table S–3. Growth in Discretionary Budget Authority by Major Agency 15.5% 26.5% 27.3% 18.4% 30.5% Note: Supplementals are excluded. 345 346 Table S–4. Discretionary Proposals By Appropriations Subcommittee (Net budget authority in billions of dollars) 2004 Actual Appropriations Subcommittee Agriculture and Rural Development ................................................................ Commerce, Justice, State and the Judiciary................................................ Defense ..................................................................................................................... District of Columbia ............................................................................................... Energy and Water Development....................................................................... Foreign Operations ................................................................................................ Homeland Security ................................................................................................ Interior and Related Agencies ........................................................................... Labor, Health and Human Services, and Education ................................. Legislative Branch.................................................................................................. Military Construction ............................................................................................. Transportation, Treasury, and General Government ................................. Veterans Affairs, Housing and Urban Development .................................. Allowances ............................................................................................................... Total, excluding supplemental and emergency funding ............ 2006 2005 Change Request 2005–2006 Enacted 17.8 39.2 366.4 0.5 27.4 17.5 27.9 20.2 140.9 3.5 9.4 27.7 91.6 — 18.3 40.8 390.4 0.6 28.3 19.5 29.0 20.2 142.4 3.5 10.0 26.3 93.5 — 16.9 44.1 407.6 0.6 27.2 22.8 29.3 19.7 141.0 4.0 12.1 25.0 90.5 0.4 1.4 3.2 17.3 * 1.0 3.3 0.3 0.5 1.4 0.5 2.0 1.4 3.0 0.4 790.1 822.7 840.3 17.6 *$500 million or less. SUMMARY TABLES (Budget authority in millions of dollars) 2004 Actual Homeland Security Funding: Department of Agriculture .......................................................................................................... Department of Commerce .......................................................................................................... Department of Defense-Military (DOD) ................................................................................. Department of Energy ................................................................................................................. Department of Health and Human Services........................................................................ Department of Homeland Security.......................................................................................... Department of the Interior .......................................................................................................... Department of Justice .................................................................................................................. Department of State ..................................................................................................................... Department of Transportation ................................................................................................... Department of the Treasury ....................................................................................................... Department of Veterans Affairs ................................................................................................ Corps of Engineers ....................................................................................................................... Environmental Protection Agency ........................................................................................... General Services Administration ............................................................................................. National Aeronautics and Space Administration ................................................................ National Science Foundation .................................................................................................... Smithsonian Institution ................................................................................................................ Social Security Administration .................................................................................................. Other Agencies............................................................................................................................... Total, Homeland Security Funding, excluding Project BioShield 1 ...................... Less, Department of Defense-Military (DOD) ..................................................................... Total, Homeland Security Funding, excluding DOD and Project BioShield ...... Less, Mandatory Homeland Security Funding 2 ............................................................... Less, Discretionary Fee-Funded Activities 3 ...................................................................... Net Non-DOD Discretionary Homeland Security, excluding Project BioShield Plus, Department of Homeland Security Project BioShield ........................................... Net Non-DOD Discretionary Homeland Security, including Project BioShield 1 2 3 411 125 7,024 1,364 4,062 22,834 83 2,165 696 284 90 271 102 131 79 207 340 78 143 239 40,728 7,024 33,704 1,940 3,289 28,475 885 29,360 2005 2006 Enacted Request 600 167 8,570 1,562 4,230 24,871 65 2,678 824 182 101 280 89 107 65 218 342 75 159 813 45,998 8,570 37,428 2,225 3,941 31,262 2,508 33,770 704 183 9,513 1,666 4,407 27,331 57 3,104 938 192 111 299 72 184 80 205 344 87 178 288 49,943 9,513 40,430 2,302 5,890 32,238 — 32,238 THE BUDGET FOR FISCAL YEAR 2006 Table S–5. Homeland Security Funding By Agency Excludes $107 million in supplemental appropriations in 2004 and $16 million in supplemental appropriations in 2005. Mandatory homeland security programs include Agriculture Quarantine and Inspections, Border Protection, and Immigration Enforcement. Discretionary fee-funded homeland security programs include Visa Processing, Airport Security, and Social Security physical and computer security measures. 347 348 Table S–6. Mandatory Proposals (In millions of dollars) 2005 Programmatic Reforms: Agriculture: Commodity Credit Corporation: Limit Loan Deficiency Payments to historical production........................................................................ Tighten payment limits .................................................... Cut Crop Payments by 5 percent ................................ Sugar marketing assessment 1.2 percent ............... Tilt adjustment requirement........................................... Extend Milk Income Loss Compensation ................. Crop insurance coverage change.................................... Forest Service: Facilities working capital fund ....................................... Enhanced facilities disposal authority ....................... Limit Food Stamp categorical eligibility ......................... Allow State Food Stamp Agencies to use the National Directory of New Hires (NDNH) ................. Subtotal, Agriculture .................................................... 2007 2008 2009 Total 2010 2006–2010 2006–2015 — — — — — — — 432 200 383 42 130 600 — 509 190 629 43 80 600 140 106 175 468 43 50 — 140 4 150 351 43 50 — 140 2 130 309 43 50 — 140 1,053 845 2,140 214 360 1,200 560 1,054 1,200 3,641 437 610 1,200 1,260 — — — 5 9 57 1 — 113 1 — 112 — 5 111 — — 114 7 14 507 7 14 1,124 — — — 658 2 1,107 2 1,097 2 856 2 790 8 4,508 18 8,165 — (4,301) — — — — (4,301) (4,301) — 101 509 915 1,321 1,734 4,580 14,959 — — 221 580 660 642 762 675 811 735 866 697 3,320 3,329 7,658 5,987 — 171 601 785 838 902 3,297 8,749 — — — 557 557 43 269 254 178 1,172 116 610 411 790 2,001 152 544 449 824 1,752 168 484 459 783 1,337 187 503 485 811 986 666 2,410 2,058 3,386 7,248 1,788 3,769 4,945 8,043 10,667 SUMMARY TABLES Education: Reform the Federal Student Aid Programs: Payoff Pell Shortfall (non-add BA only) .................... Increase the Pell Grant Maximum Award by $500 over Five Years .............................................................. Increase Borrowing Limits and Other Benefits to Students ........................................................................... Recall Federal Perkins Loan Revolving Funds ...... Increase Lender Risk Sharing and Improve Program Efficiency ....................................................... Adjust Guaranty Agency Reinsurance and Default Retention Rates ............................................................ Reform Federal Consolidation Loans ........................ Extend the Taxpayer-Teacher Extension Act .......... Other Student Loan Reforms........................................ Subtotal, Education ...................................................... 2006 (In millions of dollars) 2005 2007 2008 2009 Total 2010 2006–2010 2006–2015 — 40 157 446 1,145 1,406 3,194 12,434 — — — 40 — 157 — 446 — 1,145 140 1,266 140 3,054 200 12,234 225 — 1,112 400 1,549 500 3,699 594 4,214 605 4,417 618 12,767 2,717 44,637 5,000 100 277 329 352 361 357 1,676 3,450 — 71 9 — — — 263 63 21 30 72 7 7 1,677 1 37 46 74 7 67 636 54 23 50 77 8 135 2,560 31 40 50 79 8 3 3,195 32 40 50 81 8 164 3,557 55 119 226 383 38 48 8,271 122 319 476 834 85 49 35,970 — 60 100 100 100 100 460 960 — 227 418 636 641 642 2,564 5,783 — — — — 1,201 1,201 1 1 101 101 1 1 1,304 1,304 1,588 1,588 — — — — — 33 1,201 — 33 1 — 31 101 — 31 1 — 29 1,304 — 157 1,588 115 299 349 Energy: Allow Power Marketing Administrations to Charge up to Market Rates ........................................................... Bonneville Power Administration borrowing authority ................................................................................ Subtotal, Energy ................................................................ Health and Human Services: Medicaid and State Children’s Health Insurance Program Proposals ........................................................... State grants and demonstrations ..................................... Temporary Assistance for Needy Families Reauthorization.................................................................. Child Support Enforcement: Increase Collections and Improve Program Effectiveness .......................... Healthy Marriage and Fatherhood Initiative ................. State-Based Abstinence Grants ....................................... Foster Care Clarify Statutory Eligibility Definition ...... Foster Care Modify DC FMAP Rate ............................... Child Welfare Program Option .......................................... Subtotal, Health and Human Services ...................... Housing and Urban Development: Repeal Federal Housing Administration’s General and Special Risk Insurance Authorities .................... Interior: Southern Nevada Land Sales ........................................... Arctic National Wildlife Refuge, lease bonuses: State of Alaska’s share: Receipts ........................................................................... Expenditures .................................................................. Federal share: Receipts ........................................................................... Royalties Conservation Fund Outlays ................... Pick-Sloan Project Cost Repayment .............................. 2006 THE BUDGET FOR FISCAL YEAR 2006 Table S–6. Mandatory Proposals—Continued 350 Table S–6. Mandatory Proposals—Continued (In millions of dollars) 2005 Total, Programmatic Reforms ................................. 2007 2008 2009 2010 Total 2006–2010 2006–2015 — — 7 267 10 1,662 10 678 10 783 10 682 47 4,072 97 7,652 — — 2,195 — 3,702 65 3,495 134 3,226 141 2,916 148 15,534 488 26,521 1,341 — — — 281 6 2,482 282 12 4,061 284 20 3,933 288 17 3,672 288 17 3,369 1,423 72 17,517 3,082 172 31,116 — 1,608 1,615 1,624 855 865 6,567 11,035 — — — 11 56 1,563 6 19 1,602 6 — 1,630 6 — 861 6 — 871 35 75 6,527 65 75 11,025 — — — — 2 2 — 2 2 1,083 3 1,080 2,156 3 2,159 3,239 4 3,243 4,312 14 4,326 5,112 34 5,146 — — — 1 377 855 1,231 1,063 — 4 18 40 64 92 218 1,133 — — 65 61 77 59 84 44 — 64 — 92 226 8 226 907 820 4,506 11,269 11,073 13,795 14,101 54,744 122,779 SUMMARY TABLES Eliminate Bureau of Land Management Range Improvements Fund ......................................................... Subtotal, Interior............................................................ Labor: Pension Benefit Guaranty Corporation Reform .......... Unemployment Insurance Integrity ................................. Unemployment Insurance Overpayment Recoveries ........................................................................... Federal Employees’ Compensation Act Reforms ...... Subtotal, Labor................................................................... Treasury: Continued Dumping and Subsidy Offset repeal ......... Eliminate 10–year Statute-of-Limitations on Non-Tax Debt ...................................................................... Extend the Rum-Carryover for Puerto Rico ................. Subtotal, Treasury ............................................................. Federal Communications Commission (FCC): Extend Spectrum Auction Authority ................................ Close Telecommunications Development Fund ......... Subtotal, FCC ..................................................................... Federal Deposit Insurance Corporation: Merge Bank Insurance Fund and Savings Association Insurance Fund .......................................... Social Security Administration (SSA): Supplemental Security Income (SSI) Pre-Effectuation Reviews and Other Technical Adjustments .................................................... Extend SSI Eligibility to Refugees and Asylees to Eight Years after Entry ............................................... Subtotal, SSA................................................................. 2006 (In millions of dollars) 2005 User Fee Proposals: Agriculture: Animal Plant and Health Inspection Service * ............ Food Safety and Inspection Service * ............................ Grain Inspection, Packers and Stockyards Administration * .................................................................. Agricultural Marketing Service Standardization * ...... Justice: Bureau of Alcohol, Tobacco, Firearms and Explosives’ Explosives Regulation * .......................... Transportation: St. Lawrence Seaway Development Corporation * ... Treasury: Tax and Trade Bureau Regulatory Activity * ................ Veterans Affairs: Annual Medical Fees for higher income veterans with non-service-connected disabilities * ................. Drug Copay Increase * ........................................................ Total Medical Services (illustrative discretionary spending authority—non-add) ..................................... Environment Protection Agency: Premanufacture Notification Fee Cap Removal * ...... Pesticide Tolerance * ............................................................ Pesticide Registration * ....................................................... Federal Communications Commission: Authorize Spectrum License Fees .................................. Analog Spectrum Lease Fees .......................................... 2006 2007 2008 2009 2010 Total 2006–2010 2006–2015 — — 11 139 11 142 11 145 12 148 12 151 57 725 121 1,529 — — 25 3 26 3 26 3 27 3 27 3 131 15 276 30 — 120 120 120 120 120 600 1,200 — 8 17 17 17 17 76 170 — 29 29 29 29 29 145 297 — — 248 176 248 178 248 180 248 181 248 183 1,240 898 2,480 1,842 — (424) (426) (428) (429) (431) (2,138) (4,322) — — — 4 20 26 8 20 27 8 21 27 8 21 28 8 22 28 36 104 136 76 221 288 — — — — 50 500 150 500 300 480 300 450 800 1,930 3,125 2,580 ............................................................. — 809 1,379 1,485 1,622 1,598 6,893 14,235 Total, Programmatic Reforms and User Fee Proposals ............................................................................... 820 5,315 12,648 12,558 15,417 15,699 61,637 THE BUDGET FOR FISCAL YEAR 2006 Table S–6. Mandatory Proposals—Continued 137,014 Total, User Fees 351 352 Table S–6. Mandatory Proposals—Continued (In millions of dollars) 2005 Outlay Effects of Tax Proposals: 1 Health tax credits ....................................................................... Earned income tax credit ........................................................ Child tax credit ............................................................................ Total, Outlay effects of tax proposals ............................. User Fee Proposals with Mandatory Spending: Immigration Examination Fees.............................................. Increase Indian Gaming Commission Fees 1 .................. Foreign Labor Certification User Fees ............................... Army Corps of Engineers: Additional Recreation User Fees and Contributions. Total, User fee proposals with mandatory spending .......................................................................... Other Mandatory Proposals: Black Lung Disability Trust Fund debt refinancing: Black Lung Disability Trust Fund ...................................... Interest receipts on repayable advances ...................... Use Escrow Account for USPS Retiree Health Benefits: On-budget effect .................................................................... Off-budget effect .................................................................... Unified budget effect ........................................................ 2006 2007 2008 2009 Total 2010 2006–2010 2006–2015 — — — — 99 81 34 16 3,757 105 45 3,607 5,762 118 50 5,594 6,934 137 59 6,738 7,638 181 77 7,380 24,190 622 265 23,303 69,138 1,569 670 66,899 — — — 6 — — — 4 — — 4 — — 5 — — 5 — 6 18 — 6 43 — — 9 9 1 — — 19 19 — 15 5 3 5 5 7 18 — — 3,343 3,343 459 459 452 452 448 448 449 449 1,535 1,535 1,419 1,419 — — — 3,081 3,081 — 3,398 3,398 — 3,716 3,716 — 3,888 3,888 — 4,174 4,174 — 18,257 18,257 — 43,238 43,238 — SUMMARY TABLES (In millions of dollars) 2005 Full-time School Attendance Required for Child’s Social Security Benefits at Age 16 (off-budget) ......... Correct trust accounting deficiencies in individual Indian money investments (non-paygo) ........................ Third scorecard effects............................................................. Total, Other mandatory proposals............................... 2006 2007 2008 2009 2010 Total 2006–2010 2006–2015 — 10 75 135 140 145 505 1,326 6 — 6 — 31 21 — 31 44 — 32 103 — 32 108 — 33 112 — 159 346 — 334 992 .......................................................................................................... 826 5,325 9,090 7,064 8,782 8,426 38,687 71,089 Memorandum: Paygo .............................................................................................. Non-Paygo .................................................................................... 820 6 5,346 21 9,046 44 6,961 103 8,674 108 8,314 112 38,341 346 THE BUDGET FOR FISCAL YEAR 2006 Table S–6. Mandatory Proposals—Continued 70,097 992 Grand Total (including outlay costs of tax proposals) * The Administration will work with the Congress to reclassify the enacted fees as discretionary beginning in 2007. Once reclassified, the Administration proposes to offset these fees against discretionary spending. Discretionary totals in those years will be reduced by these fees. 1 Affects both receipts and outlays. Only the outlay effect is shown here. 353 354 Table S–7. Effect of Proposals on Receipts (In millions of dollars) 2005 Make Permanent Certain Tax Cuts Enacted in 2001 and 2003 (assumed in the baseline): Dividends tax rate structure ............................................... Capital gains tax rate structure......................................... Expensing for small business............................................ Marginal individual income tax rate reductions .......... Child tax credit 1 ................................................................... Marriage penalty relief 2 ..................................................... Education incentives ............................................................ Repeal of estate and generation-skipping transfer taxes, and modification of gift taxes ........................... Modifications of pension plans ......................................... Other incentives for families and children ..................... Total make permanent certain tax cuts enacted in 2001 and 2003................................ 2007 2008 2009 2010 Total 2006–2010 2006–2015 309 — — — — — — 509 — — — — — — 547 — — — — — — 537 5,268 3,402 — — — — 16,725 7,473 5,417 — — — — 568 5,076 4,073 — — — 3 15,700 17,817 12,892 — — — 3 102,905 59,016 21,897 502,228 96,777 36,029 8,687 4 — — 557 — — 910 — — 1,514 — — 1,847 — — 2,192 — 5 7,020 — 5 256,057 2,323 3,594 313 48 363 9,647 31,462 11,901 53,421 1,089,513 — — — — 3,709 224 — 3,485 7,151 335 134 6,682 4,069 357 286 3,426 1,693 382 326 985 199 411 300 512 16,821 1,709 1,046 14,066 1,461 14,816 1,763 15,118 — 19 1,435 1,543 1,370 1,241 5,608 9,897 — 200 2,029 2,316 2,636 2,876 10,057 28,495 — — 61 — 304 3 834 4 1,545 5 2,025 5 4,769 17 17,760 49 — — — 280 — 3,771 — 4,697 — 5,556 — 6,147 1 20,452 3 56,204 SUMMARY TABLES Tax Incentives: Simplify and encourage saving: Expand tax-free savings opportunities .......................... Consolidate employer-based savings accounts ......... Establish Individual Development Accounts (IDAs) .. Total simplify and encourage saving...................... Invest in health care: Provide a refundable tax credit for the purchase of health insurance 3 ............................................................ Provide an above-the-line deduction for high-deductible insurance premiums ......................... Provide a refundable tax credit for contributions of small employers to employee HSAs 4 ...................... Improve the Health Coverage Tax Credit 5 ................. Allow the orphan drug tax credit for certain pre-designation expenses .............................................. Total invest in health care .......................................... 2006 (In millions of dollars) 2005 Provide incentives for charitable giving: Permit tax-free withdrawals from IRAs for charitable contributions........................................................................ Expand and increase the enhanced charitable deduction for contributions of food inventory .......... Reform excise tax based on investment income of private foundations ........................................................... Modify tax on unrelated business taxable income of charitable remainder trusts ............................................ Modify basis adjustment to stock of S corporations contributing appreciated property ............................... 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, increase, and expand the above-the-line deduction for qualified out-of-pocket classroom expenses .............................................................................. Encourage telecommuting: Exclude from income the value of employer-provided computers, software, and peripherals ....................... Provide assistance to distressed areas: Establish Opportunity Zones ............................................. Provide disaster relief: Provide tax relief for FEMA hazard mitigation assistance programs ........................................................ Increase housing opportunities: Provide tax credit for developers of affordable single-family housing ....................................................... 2006 2007 2008 2009 Total 2010 2006–2010 2006–2015 70 335 318 318 313 304 1,588 3,095 42 87 96 106 116 127 532 1,388 — 148 98 105 111 119 581 1,321 6 5 6 6 6 7 30 69 4 20 21 25 28 32 126 354 3 6 10 11 10 10 47 92 — 125 2 603 5 554 9 580 16 600 24 623 56 2,960 278 6,597 — 27 267 279 282 285 1,140 2,630 — 29 50 50 55 65 249 767 — 433 806 853 899 912 3,903 9,594 20 40 40 40 40 40 200 400 — 7 84 342 815 1,425 2,673 THE BUDGET FOR FISCAL YEAR 2006 Table S–7. Effect of Proposals on Receipts—Continued 17,370 355 356 Table S–7. Effect of Proposals on Receipts—Continued (In millions of dollars) 2005 Simplify the Tax Laws for Families: Simplify adoption tax benefits................................................ Clarify eligibility of siblings and other family members for child related tax benefits 7 .......................................... Total simplify the tax laws for families ........................ 2007 2008 2009 2010 Total 2006–2010 2006–2015 — 138 215 203 195 184 935 1,743 — — 47 185 92 307 105 308 60 255 — 184 304 1,239 304 2,047 48 144 321 260 160 163 1,048 1,779 5 47 11 166 19 162 24 170 34 177 16 183 104 858 104 1,881 13 260 447 614 680 23 2,024 2,532 17 109 84 105 114 36 448 394 130 690 1,033 1,173 1,165 421 4,482 6,690 — 200 200 200 200 200 1,000 2,000 — — 275 200 — 1,191 200 — 230 200 — 4,896 200 — 8,682 200 — 10,614 1,000 — 23,232 2,000 — 117,417 — 4 40 42 43 45 174 426 11 11 51 47 78 38 77 35 60 17 40 5 306 132 536 110 SUMMARY TABLES Protect the environment: Extend permanently expensing of brownfields remediation costs .............................................................. Exclude 50 percent of gains from the sale of property for conservation purposes ........................... Total protect the environment ................................... Increase energy production and promote energy conservation: Extend the tax credit for producing electricity from wind, biomass, and landfill gas and modify the tax credit for electricity from biomass ............................... Provide tax credit for residential solar energy systems................................................................................. Modify treatment of nuclear decommissioning funds Provide tax credit for purchase of certain hybrid and fuel cell vehicles 6 ............................................................ Provide tax credit for combined heat and power property ................................................................................ Total increase energy production and promote energy conservation................................................ Restructure assistance to New York City: Provide tax incentives for transportation infrastructure ....................................................................... Repeal certain New York City Liberty Zone incentives ............................................................................. Total restructure assistance to New York City .... Total tax incentives .............................................. 2006 (In millions of dollars) 2005 Strengthen the Employer-Based Pension System: Ensure fair treatment of older workers in cash balance conversions and protect defined benefit plans ........... Strengthen funding for single-employer pension plans Reflect market interest rates in lump sum payments .... Total strengthen the employer-based pension system .............................................................................. Close Loopholes and Improve Tax Compliance: Combat abusive foreign tax credit transactions .............. Modify the active trade or business test ............................ Impose penalties on charities that fail to enforce conservation easements ..................................................... Eliminate the special exclusion from unrelated business taxable income for gain or loss on the sale or exchange of certain brownfields ................................. Apply an excise tax to amounts received under certain life insurance contracts ........................................................ Limit related party interest deductions ............................... Clarify and simplify qualified tuition programs ................. Total close loopholes and improve tax compliance Tax Administration, Unemployment Insurance, and Other: Improve tax administration: Implement IRS administrative reforms and initiate cost saving measures 8 ................................................. Strengthen financial integrity of unemployment insurance: Strengthen the financial integrity of the unemployment insurance system by reducing improper benefit payments and tax avoidance 6 ... 2006 2007 2008 2009 Total 2010 2006–2010 2006–2015 — — — 57 151 — 62 1,432 3 78 869 8 92 2,699 15 104 1,762 20 393 3,747 46 1,096 12,735 241 — 208 1,491 799 2,622 1,678 3,400 11,880 1 2 2 6 2 8 2 8 2 8 3 8 11 38 26 87 3 8 8 8 9 9 42 96 1 4 12 23 37 49 125 242 2 74 — 83 7 128 4 159 12 134 12 188 17 141 13 212 23 148 14 241 28 155 20 272 87 706 63 1,072 323 1,607 222 2,603 — — — — — — — — — — 6 6 129 530 659 THE BUDGET FOR FISCAL YEAR 2006 Table S–7. Effect of Proposals on Receipts—Continued 2,856 357 358 Table S–7. Effect of Proposals on Receipts—Continued (In millions of dollars) 2005 Other proposals: Modify pesticide registration fee....................................... Increase Indian gaming activity fees .............................. Total tax administration, unemployment insurance, and other.......................................................................... Reauthorize Funding for the Highway Trust Fund: Extend excise taxes deposited in the Highway Trust Fund 6 ........................................................................................ Allow tax-exempt financing for private highway projects and rail-truck transfer facilities ......................... Total reauthorize funding for the Highway Trust Fund .................................................................................. Promote Trade: Implement free trade agreements with Bahrain, Panama and the Dominican Republic 6 .................... 2007 2008 2009 Total 2010 2006–2010 2006–2015 — — — — — 4 — 4 — 5 — 5 — 18 152 43 — — 10 2 124 525 641 2,965 — 10 11 11 11 11 54 65 5 22 47 75 92 97 333 601 5 12 36 64 81 86 279 536 — 56 84 91 97 102 430 976 — 2,097 4,601 5,944 6,889 7,669 27,200 76,225 — — — 131 1 3 166 18 8 65 — 13 16 — 18 5 — 20 383 19 62 383 19 162 — 73 49 — — — 122 122 — 74 — — 74 — 152 304 — 1,849 — 77 312 — 4,453 — — 318 — 5,704 — — 322 — 6,601 — — 323 — 7,371 — 229 1,579 — 25,978 — 229 3,230 479 72,973 SUMMARY TABLES Extend Expiring Provisions: Research & Experimentation (R&E) tax credit ........... Combined work opportunity/welfare-to-work tax credit ...................................................................................... First-time homebuyer credit for DC ................................. Authority to issue Qualified Zone Academy Bonds ... Deduction for corporate donations of computer technology ........................................................................... Disclosure of tax return information related to terrorist activity 8 ............................................................... LUST Trust Fund taxes 6 .................................................... Abandoned mine reclamation fees.................................. Excise tax on coal 6 .............................................................. Total extend expiring provisions .............................. 2006 (In millions of dollars) 2005 Total budget proposals, including proposals assumed in the baseline ................................................ Total budget proposals, excluding proposals assumed in the baseline ................................................ 1 2 3 4 5 6 7 8 2006 2007 2008 2009 2010 Total 2006–2010 2006–2015 201 360 3,439 20,956 49,411 32,010 106,177 1,293,547 112 312 3,076 11,309 17,949 20,109 52,756 204,034 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $37,319 million for 2006–2015. Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $7,491 million for 2006–2015. Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $78 million for 2006, $3,660 million for 2007, $5,514 million for 2008, $6,529 million for 2009, $7,035 million for 2010, $22,816 million for 2006–2010 and $64,078 million for 2006–2015. Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $18 million for 2006, $87 million for 2007, $237 million for 2008, $392 million for 2009, $589 million for 2010, $1,323 million for 2006–2010 and $4,930 million for 2006–2015. Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $3 million for 2006, $10 million for 2007, $11 million for 2008, $13 million for 2009, $14 million for 2010, $51 million for 2006–2010 and $130 million for 2006–2015. Net of income offsets. Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$115 million for 2006, -$150 million for 2007, -$168 million for 2008, -$196 million for 2009, -$258 million for 2010, -$887 million for 2006–2010 and -$2,239 million for 2006–2015. No net budgetary impact. THE BUDGET FOR FISCAL YEAR 2006 Table S–7. Effect of Proposals on Receipts—Continued 359 360 Table S–8. Receipts By Source—Summary (In billions of dollars) Source 2004 Actual Estimate 2005 2006 2007 2008 2009 2010 Individual income taxes............................... 809.0 893.7 966.9 1,071.2 1,167.2 1,245.1 1,353.3 Corporation income taxes .......................... 189.4 226.5 220.3 229.8 243.4 252.4 257.6 Social insurance and retirement receipts ......................................................... 733.4 773.7 818.8 866.2 911.7 959.1 1,016.2 (On-budget) ................................................ (198.7) (212.4) (225.6) (237.0) (247.2) (258.4) (273.0) (Off-budget) ................................................ (534.7) (561.4) (593.2) (629.2) (664.6) (700.7) (743.2) Excise taxes .................................................... 69.9 74.0 75.6 77.2 79.0 81.0 82.9 Estate and gift taxes .................................... 24.8 23.8 26.1 23.5 24.3 26.0 20.1 21.1 24.7 28.3 30.6 31.9 33.9 35.3 Customs duties .............................................. Miscellaneous receipts................................ 32.6 36.4 41.6 45.6 49.5 52.6 55.4 Total receipts .......................................... 1,880.1 2,052.8 2,177.6 2,344.2 2,507.0 2,650.0 2,820.9 (On-budget) ............................................ (1,345.3) (1,491.5) (1,584.4) (1,715.0) (1,842.4) (1,949.3) (2,077.7) (Off-budget) ............................................ (534.7) (561.4) (593.2) (629.2) (664.6) (700.7) (743.2) SUMMARY TABLES (Calendar years) Average Projections 2005 2006 2007 2008 2009 2010 GDP (billions of current dollars): 2006 Budget ........................................................... 12,392 13,083 13,797 14,537 15,306 16,112 CBO January.......................................................... 12,396 13,059 13,766 14,486 15,210 15,940 Blue Chip Consensus January 1 .................... 12,398 13,066 13,763 14,496 15,265 16,098 Real GDP (chain-weighted): 2 2006 Budget ........................................................... 3.6 3.5 3.3 3.2 3.1 3.1 CBO January.......................................................... 3.8 3.7 3.7 3.4 3.1 2.9 Blue Chip Consensus January 1 .................... 3.6 3.4 3.2 3.2 3.1 3.3 Chain-weighted GDP Price Index: 2 2006 Budget ........................................................... 1.9 2.0 2.1 2.1 2.1 2.1 CBO January.......................................................... 1.8 1.5 1.7 1.8 1.8 1.8 Blue Chip Consensus January 1 .................... 2.0 2.0 2.1 2.1 2.1 2.1 Consumer Price Index (all-urban): 2 2006 Budget ........................................................... 2.4 2.3 2.4 2.4 2.4 2.4 CBO January.......................................................... 2.4 1.9 2.1 2.2 2.2 2.2 Blue Chip Consensus January 1 .................... 2.5 2.3 2.4 2.4 2.4 2.4 Unemployment rate: 3 2006 Budget ........................................................... 5.3 5.2 5.1 5.1 5.1 5.1 CBO January.......................................................... 5.2 5.2 5.2 5.2 5.2 5.2 Blue Chip Consensus January 1 .................... 5.3 5.2 5.1 5.1 5.1 5.1 Interest rates: 3 91–day Treasury bills: 2006 Budget ........................................................... 2.7 3.5 3.8 4.0 4.1 4.2 CBO January.......................................................... 2.8 4.0 4.6 4.6 4.6 4.6 Blue Chip Consensus January 1 .................... 3.0 3.8 4.1 4.3 4.2 4.2 10–year Treasury notes: 2006 Budget ........................................................... 4.6 5.2 5.4 5.5 5.6 5.7 CBO January.......................................................... 4.8 5.4 5.5 5.5 5.5 5.5 Blue Chip Consensus January 1 .................... 4.7 5.3 5.6 5.6 5.6 5.6 3.3 3.5 3.3 2.0 1.7 2.1 2.4 2.2 2.4 5.2 5.2 5.1 3.7 4.2 3.9 5.3 5.4 5.4 361 Sources: Congressional Budget Office; Blue Chip Economic Indicators, Aspen Publishers, Inc. 1 January 2005 Blue Chip Consensus forecast for 2005 and 2006; Blue Chip October 2004 long-run extension for 2007—2010. 2 Year-over-year percent change. 3 Annual averages, percent. 2005–2010 THE BUDGET FOR FISCAL YEAR 2006 Table S–9. Comparison of Economic Assumptions 362 Table S–10. Budget Summary by Category (In billions of dollars) 2004 2005 2006 2007 2008 2009 2010 Outlays: Discretionary: DOD military........................................... Non-DOD ................................................ Total, Discretionary ......................... Proposed Supplemental......................... Mandatory: Social Security ...................................... Medicare .................................................. Medicaid and SCHIP .......................... Other ......................................................... Total, Mandatory .............................. Net Interest ................................................. Total Outlays ................................................... Receipts............................................................ Deficit ............................................................ 436 459 895 — 443 487 930 35 424 497 922 25 426 491 917 18 445 488 932 2 466 486 952 1 483 488 971 — 492 265 181 299 1,237 160 2,292 1,880 412 515 290 194 337 1,337 178 2,479 2,053 427 540 340 199 331 1,410 211 2,568 2,178 390 567 381 209 319 1,476 245 2,656 2,344 312 596 407 225 324 1,551 272 2,758 2,507 251 630 433 245 328 1,635 294 2,883 2,650 233 665 460 266 351 1,743 314 3,028 2,821 207 On-budget deficit ........................................... Off-budget surplus ........................................ 567 155 589 162 560 170 506 194 466 215 463 230 460 252 SUMMARY TABLES (in billions of dollars) 2004 2005 2006 2007 2008 2009 2010 Discretionary: DOD military .................................................. Homeland security ...................................... Other ................................................................ Total, Discretionary ................................. Mandatory: Social Security .............................................. Medicare ......................................................... Medicaid and SCHIP .................................. Other ................................................................ Total, Mandatory ...................................... Net Interest ......................................................... Total Outlays ...................................................... Receipts............................................................... Surplus/deficit ............................................... 436 25 434 895 443 30 457 930 417 33 464 914 416 34 473 923 428 34 480 942 439 35 487 961 453 36 497 986 492 265 181 299 1,237 160 2,292 1,880 412 515 290 194 337 1,336 177 2,443 2,053 390 540 340 198 337 1,416 209 2,539 2,178 361 567 381 211 327 1,485 242 2,650 2,347 303 596 407 229 327 1,558 269 2,770 2,518 251 630 433 249 333 1,645 291 2,897 2,668 229 666 460 271 355 1,752 310 3,048 2,841 207 On-budget deficit ......................................... Off-budget surplus....................................... 567 155 552 162 534 173 500 197 469 218 462 233 THE BUDGET FOR FISCAL YEAR 2006 Table S–11. Current Services Baseline Summary by Category 462 256 363 364 Table S–12. Impact of Budget Policy (In billions of dollars) 2005 2006 2007 2008 2009 Total 2010 2006–2010 Current Services Baseline Deficit .......... 390 361 303 251 229 207 1,351 Proposals: Discretionary policy: Department of Defense..................... Homeland security .............................. Other spending .................................... Subtotal, discretionary ........................... — — * * 8 1 1 8 11 * 16 5 18 1 29 10 29 2 41 10 34 2 52 16 99 5 138 34 Proposed supplemental ........................ 35 26 21 6 5 4 62 ............................. * * 7 18 26 30 82 Mandatory proposals ............................. 1 5 13 14 17 18 68 2006 Budget Deficit ..................................... 427 390 312 251 233 207 1,393 Revenue proposals 1 *$500 million or less. Note: Each line includes debt service. 1 Includes outlay impact of revenue proposals. SUMMARY TABLES (In billions of dollars) 2005 Budget Enforcement Act Baseline Deficit............................... 2006 2007 2008 2009 Total 2010 2006–2010 2006–2015 391 369 315 256 213 212 1,364 — * — 1 — 1 — 2 — 2 — 2 — 7 502 256 * * 1 * 1 * 8 10 30 31 10 12 46 53 376 1,134 Assume all emergencies are one-time only ........................... — 5 9 11 12 13 50 Adjust pay factors to more accurately reflect changes in pay costs ................................................................................... — 2 2 3 3 3 12 Remove special rule for administrative expenses for certain benefit programs........................................................... — * * * 1 1 2 Debt service related to all changes .......................................... * * 1 1 1 1 3 Current Services Baseline Deficit .............................................. 390 361 303 251 229 207 THE BUDGET FOR FISCAL YEAR 2006 Table S–13. Baseline Adjustments 1,351 Extend certain tax provisions: Permanently extend individual income tax rate cuts ...... Permanently extend estate and tax gift changes ............ Extend other provisions of the 2001 and 2003 tax acts 1 .......................................................................................... Subtotal, tax extenders ......................................................... *$500 million or less. 1 Table S–7 provides a detailed listing of expiring tax provisions in the baseline. 365 366 Table S–14. Federal Government Financing and Debt (In billions of dollars) Estimate Actual 2004 Financing: Unified budget deficit ( ) ....................................................................................... Financing other than the change in debt held by the public: Net purchases ( ) of non-Federal securities by the National Railroad Retirement Investment Trust ............................. Changes in: 1 2005 2006 2007 2008 2009 2010 412 427 390 312 251 233 207 3 1 1 1 * * 1 1 22 7 1 1 — — 1 — — — 1 — — — 1 — — — 1 — — — 1 — — — 1 5 9 9 9 13 2 20 2 21 2 20 3 21 3 30 382 1 426 10 400 21 333 22 273 22 255 22 230 Change in debt held by the public....................................................................... 382 426 400 333 273 255 230 Changes in Debt Subject to 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 ................................. 382 213 1 596 426 251 13 663 400 277 * 676 333 309 1 643 273 326 1 599 255 340 3 598 230 364 2 596 Debt Subject to Statutory Limitation, End of Year: Debt issued by Treasury ......................................................................................... Adjustment for discount, premium, and coverage 4 .................................... Total, debt subject to statutory limitation 5 ................................................. 7,328 6 7,333 8,005 8 7,997 8,682 8 8,673 9,325 8 9,316 9,924 8 9,915 10,519 6 10,513 11,114 5 11,109 SUMMARY TABLES Treasury operating cash balance ............................................................... Compensating balances 2 ........................................................................... Checks outstanding, etc. 3 .......................................................................... Seigniorage on coins ........................................................................................... Less: Net financing disbursements: Direct loan financing accounts .................................................................... Guaranteed loan financing accounts ........................................................ Total, financing other than the change in debt held by the public ........................................................................................................... Total, requirement to borrow from the public ............................ (In billions of dollars) Actual 2004 Debt Outstanding, End of Year: Gross Federal debt: 6 Debt issued by Treasury .................................................................................... Debt issued by other agencies ........................................................................ Total, gross Federal debt ............................................................................... Held by: Debt held by Government accounts .............................................................. Debt held by the public 7 .................................................................................. As a percent of GDP ....................................................................................... Estimate 2005 2006 2007 2008 2009 2010 7,328 27 7,355 8,005 26 8,031 8,682 26 8,708 9,325 26 9,350 9,924 25 9,949 10,519 24 10,544 11,114 24 11,137 3,059 4,296 37.2% 3,310 4,721 38.6% 3,587 5,121 39.7% 3,896 5,454 40.1% 4,222 5,727 39.9% 4,562 5,982 39.6% 4,926 6,212 39.1% THE BUDGET FOR FISCAL YEAR 2006 Table S–14. Federal Government Financing and Debt—Continued * $500 million or less. 1 A decrease in the Treasury operating cash balance or compensating balances (which are assets) 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 Compensating balances were non-interest bearing Treasury bank deposits that Treasury mainly used to compensate banks for collecting tax and non-tax receipts under financial agency agreements. Most of the balances at the end of 2003 were required to be invested in nonmarketable Depositary Compensation Securities issued by the Treasury; the rest of the balances, and the entire amount in previous years, was invested in the way that the banks decided. The use of compensating balances was discontinued in 2004, and the amounts were drawn down to zero. 3 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 and compensating balances), other asset accounts, and profit on sale of gold. 4 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. 5 The statutory debt limit is $8,184 billion. 6 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). 7 At the end of 2004, the Federal Reserve Banks held $700 billion of Federal securities and the rest of the public held $3,595 billion. Debt held by the Federal Reserve Banks is not estimated for future years. 367
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