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SUMMARY TABLES

Table S–1. Budget Totals
(Dollar amounts in billions)
  2002 2003 2004 2005 2006 2007 2008
               
In billions of dollars:              
   Receipts 1,853 1,836 1,922 2,135 2,263 2,398 2,521
   Outlays 2,011 2,140 2,229 2,343 2,464 2,576 2,711
      Deficit -158 -304 -307 -208 -201 -178 -190
               
   Debt held by the public 3,540 3,878 4,166 4,387 4,603 4,797 5,003
               
As a percent of GDP:              
   Receipts 17.9 17.1 17.0 18.0 18.1 18.3 18.3
   Outlays 19.5 19.9 19.7 19.7 19.7 19.7 19.7
      Deficit -1.5 -2.8 -2.7 -1.8 -1.6 -1.4 -1.4
               
   Debt held by the public 34.3 36.1 36.9 36.9 36.9 36.6 36.4
               

Table S–2. Budget Summary by Category
(In billions of dollars)
  2002 2003 2004 2005 2006 2007 2008 Total
2004–2008
                 
Outlays:                
   Discretionary:                
      Defense (050) 349 376 390 410 423 436 460 2,119
      Nondefense 385 416 429 440 447 455 466 2,237
         Total, Discretionary 734 791 819 850 870 891 926 4,356
   Mandatory:                
      Social Security 452 474 493 512 533 559 587 2,684
      Medicare 228 241 255 272 301 323 345 1,497
      Medicaid and SCHIP 151 167 185 199 217 234 254 1,089
      Other 274 305 301 307 319 329 344 1,599
         Total, Mandatory 1,106 1,188 1,234 1,289 1,369 1,445 1,531 6,868
   Net interest 171 161 176 204 225 240 254 1,099
Total Outlays 2,011 2,140 2,229 2,343 2,464 2,576 2,711 12,323
Receipts 1,853 1,836 1,922 2,135 2,263 2,398 2,521 11,239
   Deficit -158 -304 -307 -208 -201 -178 -190 -1,084
                 
   On-budget deficit -317 -468 -482 -407 -412 -406 -433 -2,140
   Off-budget surplus 160 163 175 199 211 228 243 1,056
                 

Table S–3. Impact of Budget Policy
(In billions of dollars)
  2003 2004 2005 2006 2007 2008 Total
2004-2008
               
Current baseline surplus/deficit -264 -158 -40 5 29 51 -114
               
Budget proposals:              
   Economic growth package -33 -114 -88 -69 -56 -54 -380
   Defense and homeland security -3 -12 -22 -28 -31 -45 -138
   Strengthening Medicare — -6 -10 -33 -38 -43 -130
   Aid to education -* -1 -6 -10 -11 -11 -39
   Incentives for charitable giving -* -2 -2 -2 -2 -2 -9
   Health tax credits — -1 -7 -12 -13 -15 -48
   Extension of expiring tax provisions -1 -5 -14 -18 -7 -8 -53
   Other proposals -3 -5 -8 -14 -20 -22 -68
   Related debt service -* -4 -11 -20 -30 -40 -105
               
Subtotal, budget proposals -40 -149 -168 -205 -207 -241 -970
               
Budget deficit -304 -307 -208 -201 -178 -190 -1,084
               
* $500 million or less.
Table S–4. Discretionary Totals
(Budget authority; dollar amounts in billions)
  2002
Enacted		 Estimate 2003-2004
Change
2003 2004 Dollar Percent
           
Discretionary budget authority:          
   Homeland security (non-Defense) 13 27 28 1 1 5.5%
   Department of Defense 328 365 380 15 4.2%
   Other operations of government 350 360 374 14 3.8%
Total, Discretionary budget authority 691 752 782 30 4.0%
 
  Estimate 2004-2005
Change		  
  2004 2005 Dollar Percent  
           
Total, Discretionary budget authority 782 813 31 4.0%  
Assumptions:
— All totals include mass transit budget authority.
— 2002: $686 billion enacted discretionary funding adjusted for technical re-estimates. In addition, $44 billion was provided in supplemental acts, $29 billion for recurring purposes.
— 2003: Presidentially approved spending level: House passed budget resolution, adjusted for mass transit.
1 Discretionary homeland security only. Including mandatory and fee funded costs, homeland security grows 7.6 percent.

Table S–5. Homeland Security Funding by Agency
(Budget authority in millions of dollars)
  2002 Estimate
Enacted Supplemental 2003 2004
         
Non-Defense Homeland Security Funding:        
   Department of Agriculture 230 322 396 390
   Department of Commerce 99 19 133 153
   Department of Energy 1,067 153 1,164 1,361
   Department of Health and Human Services 433 1,480 3,987 3,776
   Department of Homeland Security 11,398 5,982 22,035 23,890
   Department of Justice 1,019 1,125 1,947 2,290
   Department of State 438 39 658 811
   Department of the Treasury 84 32 80 91
   Department of Transportation 635 785 258 284
   Department of Veterans Affairs 47 2 132 145
   Corps of Engineers — 139 65 104
   Environmental Protection Agency 13 174 134 124
   Social Security Administration 113 8 132 147
   National Aeronautics and Space Administration 114 109 164 170
   National Science Foundation 240 19 264 307
   Postal Service — 587 — —
   Other Agencies 267 556 623 590
Total, Non-Defense Homeland Security Funding 16,197 11,531 32,172 34,633
         
   Department of Defense—Military 4,423 733 8,863 1 6,714
         
Total, Homeland Security Funding, including Defense 20,620 12,264 41,035 41,347
         
Total, Homeland Security Funding, including Defense 20,620 12,264 41,035 41,347
   Less Mandatory Homeland Security Funding2 -1,656 — -2,006 -2,897
   Less Discretionary Fee-Funded Activities3 -1,828 — -3,406 -3,497
   Less Department of Defense—Military -4,423 -733 -8,863 -6,714
Net Non-Defense Discretionary Homeland Security Budget Authority 12,713 11,531 26,760 28,239
         
1 Defense homeland security funding falls in 2004 due to one-time force protection investments in 2003.
2 Mandatory homeland security programs include Agricultural Quarantine and Inspections, Border Protection, and Immigration Enforcement.
3 Discretionary fee-funded homeland security programs include Visa Processing, Airport Security, and Social Security physical and computer security measures.

Table S–6. Percentage Year-to-Year Growth in Discretionary Budget Authority
Agency 1998 to 1999 1999 to 2000 2000 to 2001 2001 to 2002 2002 to 2003 2003 to 2004 Average Growth
1998-2004
Agriculture 4 4 13 3 -2 * 4
Commerce 29 61 -41 6 -5 5 4
Defense 6 5 5 8 11 4 7
Education -3 2 37 21 4 6 10
Energy 7 -1 13 4 5 6 6
Health and Human Services 12 9 19 10 9 3 10
Housing and Urban Development 12 -6 34 4 5 1 8
Interior -1 6 21 2 -2 3 5
State and International Assistance Programs 23 2 -4 6 7 12 7
Labor 3 -20 36 2 -4 -1 1
Veterans Affairs 2 9 7 6 6 11 7
Corps of Engineers -2 1 14 -4 -10 1 *
Environmental Protection Agency Operating Program 5 1 9 1 2 7 4
National Aeronautics and Space Administration * * 5 4 1 3 2
National Science Foundation 7 6 13 8 5 9 8
Small Business Administration 16 7 1 -15 2 2 2
Social Security Administration * 2 8 6 5 9 5
Homeland Security Agencies (see below) 1 6 14 7 11 3 7
Other Agencies 5 -3 * -14 14 7 1
   Total (excluding emergency response funding) 6 4 10 8 9 4 7
   Total (including emergency response funding) 6 4 13 11 2 4 7
               
Agencies principally affected by creation of the Department of Homeland Security1 :             Average Growth
2002 to 2004
Department of Homeland Security         62 5 31
Justice2 5 2 13 -12 -1 -3 -2
Transportation2 -14 13 28 -30 * 6 3
Treasury2 12 -2 16 -27 5 4 4
Federal Emergency Management Agency2 18 37 -38 26      
* 0.5 percent or less.
1 For agencies in the box, the comparable amounts back to 1998 are not available as of the printing of this budget. These agencies are shown as transferred to the Department of Homeland Security from 2002 to 2004 for comparability.
2 Growth rates shown for 1998 to 2001 reflect the old structure.

Table S–7. Discretionary Budget Authority by Agency
(Dollars in billions)
Agency 2002
Actual		 Estimate Change:
2003–2004
2003 2004
         
Agriculture 20.0 19.5 19.5 *
Commerce 5.4 5.1 5.4 0.3
Defense 327.8 364.6 379.9 15.3
Education 48.5 50.3 53.1 2.8
Energy 20.9 22.1 23.4 1.3
Health and Human Services 59.5 64.6 66.2 1.6
Homeland Security 15.7 25.4 26.7 1.3
Housing and Urban Development 29.4 30.9 31.3 0.4
Interior 10.5 10.2 10.6 0.4
State and International Assistance Programs 23.0 24.5 27.4 2.9
Justice 18.6 18.3 17.7 -0.6
Labor 12.1 11.6 11.5 -0.1
Transportation 12.9 12.9 13.7 0.8
Treasury 10.5 11.0 11.4 0.4
Veterans Affairs 23.8 25.4 28.1 2.7
Corps of Engineers 4.5 4.0 4.0 *
Environmental Protection Agency 7.9 7.6 7.6 *
   Environmental Protection Agency Operating Program 3.9 4.0 4.3 0.3
National Aeronautics and Space Administration 14.8 15.0 15.5 0.5
National Science Foundation 4.8 5.0 5.5 0.5
Small Business Administration 0.8 0.8 0.8 *
Social Security Administration 6.4 6.7 7.3 0.6
Other Agencies 13.2 15.1 16.1 1.1
Allowances1 — 1.1 -0.5 –1.7
         
   Total, excluding emergency response funding 690.9 751.8 782.2 30.4
         
Emergency response funding 43.8 * * *
         
   Total, including emergency response funding 734.7 751.8 782.2 30.4
         
* $50 million or less.
1 Adjusted in 2003 for the Presidentially approved spending level (the House-passed budget resolution, adjusted for mass transit) and includes a $1.3 billion adjustment for the reclassification of the Crime Victims fund as mandatory.

Table S–8. Discretionary Proposals By Appropriations Subcommittee
(Budget authority in billions of dollars)
Appropriations Subcommittee 2002
Enacted		 2003
Estimate		 2004
Estimate		 Change:
2003-2004
         
Agriculture and Rural Development 16.9 17.0 16.9 -0.1
Commerce, Justice, State, and the Judiciary 37.5 38.0 38.6 0.6
Defense 317.3 354.3 371.0 16.7
District of Columbia 0.3 0.2 0.3 *
Energy and Water Development 24.8 25.4 26.8 1.4
Foreign Operations 15.1 16.5 18.8 2.3
Interior and Related Agencies 19.5 19.1 19.7 0.5
Labor, Health and Human Services, and Education 123.7 130.2 135.1 4.9
Legislative 3.0 3.4 3.8 0.3
Military Construction 10.6 10.5 9.0 -1.5
Transportation and Related Agencies 12.8 12.8 13.5 0.7
Treasury and General Government 12.1 12.8 13.5 0.7
Veterans Affairs, Housing and Urban Development 81.6 85.1 89.1 4.0
Allowances1 — 1.1 -0.5 -1.7
Department of Homeland Security 15.7 25.4 26.7 1.3
         
   Total, excluding emergency response funding 690.9 751.8 782.2 30.4
         
Emergency response funding 43.8 — — —
         
* $50 million or less.
1 Adjusted in 2003 for the Presidentially approved spending level (the House-passed budget resolution, adjusted for mass transit) and includes a $1.3 billion adjustment for the reclassification of the Crime Victims fund as mandatory.

Table S–9. Mandatory Proposals
(In millions of dollars)
  2003 2004 2005 2006 2007 2008 Total
2004–2008 2004–2013
                 
Medicare Modernization — 6,000 10,000 33,000 38,000 43,000 130,000 400,000
                 
Economic Growth Plan:1                
   Personal Re-employment Accounts 1,600 2,000 — — — — 2,000 2,000
   Refundable Child Tax Credit 300 1,074 4,783 4,272 4,195 4,142 18,466 25,239
      Subtotal, Economic Growth Package 1,900 3,074 4,783 4,272 4,195 4,142 20,466 27,239
                 
Medicaid/State Children's Health Insurance Program (SCHIP):                
   Medicaid/SCHIP Reform — 3,258 1,053 1,664 1,213 1,756 8,944 -66
   Disability/New Freedom Initiatives — 180 184 197 212 221 993 1,338
   Medicaid Rebate Reform — -384 -432 -481 -531 -581 -2,409 -6,421
   Other Medicaid Proposals 225 359 579 426 437 457 2,257 2,687
      Subtotal, Medicaid/SCHIP 225 3,412 1,384 1,805 1,330 1,854 9,786 -2,462
                 
Welfare Reform:                
   Temporary Assistance for Needy Families Reauthorization -4 147 310 334 325 324 1,441 3,069
   Child Support Enforcement: Increase Collections and Improve Program Effectiveness — -61 -47 10 51 48 2 221
   Child Welfare Program Option — 31 88 127 -13 -205 28 40
   Extend Abstinence Education 7 37 42 47 50 36 212 218
      Subtotal, Welfare Reform 3 154 393 519 413 204 1,683 3,548
                 
Other Proposals:                
   Agriculture:                
      Limit Conservation Security Program — — -215 -332 -447 -603 -1,597 -5,200
      Forest Service Recreation Fee Proposal — — -17 -12 -7 -2 -38 22
      School Lunch: Require Third-Party Verification of Income and Reinvest Program Savings — — — — — — — —
         Subtotal, Agriculture — — -232 -344 -454 -605 -1,635 -5,178
   Education:                
      Teacher Loan Forgiveness — 178 47 50 54 55 384 696
   Energy:                
      Power Marketing Associations to Directly Fund Corps of Engineers' Operation and Maintenance Expenses 149 145 148 151 154 158 756 1,603
      Increase BPA's Borrowing Authority — — 85 430 185 — 700 700
      Arctic National Wildlife Refuge (ANWR), Lease Bonuses — — -1,200 — — — -1,200 -1,200
         Subtotal, Energy 149 145 -967 581 339 158 256 1,103
   Homeland Security:                
      Extend Customs User Fees — -1,398 -1,490 -1,588 -1,692 -1,804 -7,972 -18,939
      Vaccine Biodefense — 575 840 790 635 578 3,418 5,593
         Subtotal, Homeland Security — -823 -650 -798 -1,057 -1,226 -4,554 -13,346
   Interior:                
      ANWR, Lease Bonuses:                
         State of Alaska's share:                
            Receipts — — –1,201 -1 -101 -1 -1,304 -1,588
            Expenditure — — 1,201 1 101 1 1,304 1,588
         Federal share — — -1 –1 -101 -1 -104 -388
      Compacts of Free Association - financial assistance — 19 20 21 22 23 105 235
      Permanent Recreation Fee Authority — — -13 12 49 88 136 587
      Correct trust accounting deficiencies in individual Indian money investments 7 — — — — — — —
      Increase Indian Gaming Commission Fees1 — — 3 4 4 5 16 41
      Bureau of Land Management Land Sale Authority:                
         Receipts — -10 -25 -34 -42 -50 -161 -444
         Expenditure — — — 10 25 34 69 337
            Subtotal, Interior 7 9 -16 12 –43 99 61 368
   Labor:                
      Reform Unemployment Insurance Administration — — — — 718 1,712 2,430 17,336
      Reform Federal Employees Compensation Act (FECA) — -10 -17 -16 -9 -8 -60 -130
      Refinance Black Lung Disability Trust Fund Debt:                
         Black Lung Disability Trust Fund — 1,851 -444 -433 -429 -423 122 -1,913
         Interest Receipts on Repayable Advances — -1,851 444 433 429 423 -122 1,913
            Subtotal, Labor — -10 -17 -16 709 1,704 2,370 17,206
   Transportation:                
      Federal-aid Highway Program: Increase Emergency Relief — 27 68 84 94 100 373 873
   Treasury:                
      Pay financial institutions for their services in lieu of providing compensating balances:                
         Financial Agent Reimbursement Fund — 386 396 400 408 416 2,006 4,169
         Interest on Treasury Debt Securities — -386 -638 -540 -539 -540 -2,643 -5,321
            Subtotal, compensating balances — — -242 -140 -131 -124 -637 -1,152
      Internal Revenue Service Collection Contractor Support — 2 96 146 146 146 536 1,266
      Move Asset Forfeiture Fund to the Department of Justice:                
         Treasury Asset Forfeiture Fund — -221 -221 -221 -221 -221 -1,105 -2,210
         Justice Asset Forfeiture Fund — 221 221 221 221 221 1,105 2,210
      Extend the Rum Carryover for Puerto Rico — 57 78 19 — — 154 154
      Outlay Effects of Refundable Tax Credits:1                
         Child Credit — — — — — — — 20,781
         Earned Income Tax Credit — — — — — — — 3,744
         Education Credit — 213 543 714 796 886 3,152 3,626
         Health Credit — — 3,546 8,166 9,251 9,827 30,790 87,608
            Subtotal, refundable tax credits — 213 4,089 8,880 10,047 10,713 33,942 115,759
               Subtotal, Treasury — 272 4,021 8,905 10,062 10,735 33,995 116,027
   Veterans Affairs:                
      Reverse Allen Case providing compensation for drug and alcohol abuse related disabilities — -127 -302 -392 -460 -502 -1,783 -4,559
      Payment of full compensation to New Philippine Scouts and DIC survivors of Filipino veterans if they reside in the United States — 3 4 4 4 5 19 46
      Eliminate the “45 Day Rule” for Death Pension — 1 1 1 1 1 6 13
      Revision to Montgomery G.I. Bill to Provide for On-the-Job Training in Self-Employment — * * * * * 2 4
      Retroactivity for Second Headstone or Marker Benefit — 5 3 3 1 1 13 13
      Allow states to receive a burial plot allowance for all veterans buried at no cost in state veterans cemeteries — * * * * * 2 4
      Alternate Beneficiary to Claim National Service Life Insurance and Veterans Special Life Insurance Policy Proceeds — — — 6 5 4 15 17
      Amend the law to provide the same extension of time for using education benefits for members of the National Guard — * * * 1 1 3 5
      Move Transitional Housing Program from a mandatory loan to a discretionary grant program — -5 -10 -10 -10 -5 -40 -40
         Subtotal, Veterans Affairs — -122 -303 -387 -457 -495 -1,764 -4,498
   Federal Communications Commission (FCC):                
      Analog Spectrum Lease Fee — — — — -500 -500 -1,000 -2,530
      Extend Spectrum Auction Authority and Authorize Other Economic Mechanisms (Fees) — — -10 -25 1,950 1,900 3,815 -4,060
            Subtotal, FCC — — -10 -25 1,450 1,400 2,815 -6,590
   Federal Deposit Insurance Corporation:                
      Merge Bank Insurance Fund and Savings Association Insurance Fund — 440 824 295 — 21 1,580 1,805
   Office of Personnel Management (OPM):                
      Postal Service Pension Proposal:                
         On-budget 3,490 2,658 2,851 2,873 3,065 3,411 14,858 36,719
         Off-budget -3,490 -2,658 -2,851 -176 — — -5,685 -5,685
      Simplify computation of annuities under the Civil Service Retirement Service for part-time service — 3 8 14 20 27 72 313
            Subtotal, OPM — 3 8 2,711 3,085 3,438 9,245 31,347
   Social Security Administration (SSA):                
      Close Loophole that Allows Some Workers to Avoid Government Pension Offset — — — -5 -5 -10 -20 -90
      Reduce Improper Payments by Requiring Reporting of Non-Social Security Covered Pension Income — — — -195 -295 -260 -750 -2,180
      Compensation for 2000-01 Military Wage Credits:                
         On-budget — 628 — — — — 628 628
         Off-budget — -628 — — — — -628 -628
      Supplemental Security Income Pre-Effectuation Reviews and Other Technical Adjustments — — -16 -36 -57 -85 -194 -1,062
            Subtotal, SSA — — -16 -236 -357 -355 -964 -3,337
   Multi-Agency:                
      Spectrum Relocation Fund — — 200 400 500 600 1,700 2,500
   Indirect Impact of Other Proposals (Third Scorecard):                
      Medicare Program Management User Fee Effects on Supplemental Medical Insurance Premiums — — 35 12 — — 47 298
      Postal Service Pension Proposal Effect on Federal Financing Bank Revolving Fund 2 5 9 11 11 10 46 86
      Enact FECA Surcharge — — -4 -5 -5 -3 -17 -24
   Total, Mandatory Proposals 2,286 12,764 19,557 50,846 57,870 64,836 205,872 567,666
                 
      Total, Excluding Medicare Modernization 2,286 6,764 9,557 17,846 19,870 21,836 75,872 167,666
                 
* $500,000 or less.
1 Affects both receipts and outlays. Only the outlay effect is shown here.

Table S–10. Effect of Proposals on Receipts
(In millions of dollars)
  2003 2004 2005 2006 2007 2008 Total
2004–2008 2004–2013
                 
Economic Growth Package:                
   Accelerate 10-percent individual income tax rate bracket expansion -978 -7,782 -6,112 -6,117 -6,495 -4,275 -30,781 -47,194
   Accelerate reduction in individual income tax rates -5,808 -35,693 -17,470 -4,939 — — -58,102 -58,102
   Accelerate marriage penalty relief -2,776 -27,134 -14,680 -7,642 -3,595 -1,735 -54,786 -55,210
   Accelerate increase in child tax credit1 -13,527 -5,060 -10,735 -8,534 -8,532 -8,502 -41,363 -53,306
   Eliminate the double taxation of corporate earnings -3,801 -24,874 -22,062 -28,218 -31,126 -33,952 -140,232 -360,324
   Increase expensing for small business -1,023 -1,652 -1,776 -1,912 -1,601 -1,431 -8,372 -14,583
   Provide minimum tax relief to individuals -3,141 -8,534 -10,353 -6,931 — — -25,818 -25,818
      Total economic growth package -31,054 -110,729 -83,188 -64,293 -51,349 -49,895 -359,454 -614,537
                 
Tax Incentives:                
   Provide incentives for charitable giving:                
      Provide charitable contribution deduction for nonitemizers -199 -1,358 -1,067 -1,128 -1,177 -1,214 -5,944 -12,571
      Permit tax-free withdrawals from IRAs for charitable contributions -66 -437 -361 -376 -382 -388 -1,944 -4,076
      Expand and increase the enhanced charitable deduction for contributions of food inventory -19 -54 -59 -66 -72 -79 -330 -872
      Reform excise tax based on investment income of private foundations -16 -264 -172 -178 -186 -198 -998 -2,192
      Modify tax on unrelated business taxable income of charitable remainder trusts -1 -3 -4 -4 -4 -4 -19 -51
      Modify basis adjustment to stock of S corporations contributing appreciated property — -12 -11 -14 -16 -19 -72 -216
      Repeal the $150 million limitation on qualified 501(c)(3) bonds -2 -6 -9 -10 -9 -9 -43 -82
      Repeal restrictions on the use of qualified 501(c)(3) bonds for residential rental property — -2 -6 -11 -17 -24 -60 -276
   Strengthen and reform education:                
      Provide refundable tax credit for certain costs of attending a different school for pupils assigned to failing public schools2 — -13 -29 -38 -42 -46 -168 -192
      Extend, increase and expand the above-the-line deduction for qualified out-of-pocket classroom expenses — -23 -229 -240 -249 -260 -1,001 -2,352
   Invest in health care:                
      Provide refundable tax credit for the purchase of health insurance3 — -324 -1,449 -889 -409 -139 -3,210 -1,550
      Provide an above-the-line deduction for long-term care insurance premiums — -112 -559 -984 -1,923 -3,063 -6,641 -28,255
      Allow up to $500 in unused benefits in a health flexible spending arrangement to be carried forward to the next year — -367 -640 -723 -782 -830 -3,342 -8,385
      Provide additional choice with regard to unused benefits in a health flexible spending arrangement — -19 -33 -39 -45 -52 -188 -595
      Permanently extend and reform Archer MSAs — -26 -284 -432 -486 -549 -1,777 -5,134
      Provide an additional personal exemption to home caregivers of family members — -70 -465 -437 -422 -417 -1,811 -3,892
      Allow the orphan drug tax credit for certain pre-designation expenses — — — -1 -1 -1 -3 -8
   Encourage telecommuting:                
      Exclude from income the value of employer-provided computers, software and peripherals — -35 -51 -53 -54 -56 -249 -554
   Increase housing opportunities:                
      Provide tax credit for developers of affordable single-family housing — -7 -78 -315 -750 -1,316 -2,466 -16,133
   Encourage saving:                
      Establish Individual Development Accounts (IDAs) — — -124 -267 -319 -300 -1,010 -1,347
   Protect the environment:                
      Permanently extend expensing of brownfields remediation costs — -185 -282 -268 -257 -248 -1,240 -2,356
      Exclude 50 percent of gains from the sale of property for conservation purposes — -21 -44 -46 -48 -50 -209 -531
   Increase energy production and promote energy conservation:                
      Extend and modify the tax credit for producing electricity from certain sources -124 -264 -355 -209 -90 -92 -1,010 -1,492
      Provide tax credit for residential solar energy systems -4 -7 -10 -18 -25 -11 -71 -71
      Modify treatment of nuclear decommissioning funds -14 -251 -180 -191 -201 -212 -1,035 -2,260
      Provide tax credit for purchase of certain hybrid and fuel cell vehicles -44 -154 -316 -524 -793 -631 -2,418 -3,202
      Provide tax credit for energy produced from landfill gas -5 -28 -65 -88 -99 -112 -392 -707
      Provide tax credit for combined heat and power property -45 -71 -66 -64 -77 -14 -292 -250
      Provide excise tax exemption (credit) for ethanol4 — — — — — — — —
   Promote trade:                
      Implement free trade agreements with Chile and Singapore5 — -25 -51 -68 -80 -92 -316 -913
   Improve tax administration:                
      Implement IRS administrative reforms — 78 54 56 57 59 304 624
      Permit private collection agencies to engage in specific, limited activities to support IRS collection efforts — 46 128 111 94 97 476 1,008
      Combat abusive tax avoidance transactions 12 45 83 98 99 103 428 1,007
      Limit related party interest deductions 10 104 190 239 293 351 1,177 3,987
   Reform unemployment insurance:                
      Reform unemployment insurance administrative financing5 — — -1,068 -1,439 -3,368 -2,016 -7,891 -13,401
            Total tax incentives -517 -3,865 -7,612 -8,616 -11,840 -11,832 -43,765 -107,290
                 
Other Proposals:                
   Deposit full amount of excise tax imposed on gasohol in the Highway Trust Fund5 — — — 558 576 590 1,724 4,912
   Increase Indian gaming activity fees — — 3 4 4 5 16 41
         Total other proposals — — 3 562 580 595 1,740 4,953
                 
Simplify the Tax Laws:                
   Establish uniform definition of a qualifying child -2 -43 -23 -24 -28 -19 -137 -211
   Simplify adoption tax provisions -4 -36 -37 -39 -40 -42 -194 -429
   Expand tax-free savings opportunities 1,390 10,572 4,803 1,915 -648 -1,822 14,820 2,002
   Consolidate employer-based savings accounts -5 -185 -253 -263 -276 -292 -1,269 -3,011
         Total simplify the tax laws 1,379 10,308 4,490 1,589 -992 -2,175 13,220 -1,649
                 
Expiring Provisions:                
   Temporarily extend expiring provisions:                
      Combined work opportunity/welfare-to-work tax credit — -54 -201 -268 -181 -96 -800 -873
      Minimum tax relief for individuals — -260 -7,286 -10,343 — — -17,889 -17,889
      DC tax incentives — -53 -116 -58 -1 -4 -232 -357
      Authority to issue Qualified Zone Academy Bonds — -6 -18 -34 -52 -64 -174 -514
      Deduction for corporate donations of computer technology — -74 -127 -52 — — -253 -253
      Net operating loss offset of 100 percent of AMTI -639 -3,028 -2,274 -1,442 420 367 -5,957 -4,890
      IRS user fees — 68 81 6 — — 155 155
      Abandoned mine reclamation fees — — 308 313 319 325 1,265 2,978
   Permanently extend expiring provisions:                
      Provisions expiring in 2010:                
         Marginal individual income tax rate reductions — — — — — — — -286,952
         Child tax credit6 — — — — — — — -46,893
         Marriage penalty relief 7 — — — — — — — -20,654
         Education incentives -2 -11 -19 -27 -33 -42 -132 -4,685
         Repeal of estate and generation-skipping transfer taxes, and modification of gift taxes 46 -292 -810 -1,319 -1,540 -1,736 -5,697 -125,991
         Modifications of IRAs and pension plans — — — — — — — -11,236
         Other incentives for families and children — — — — — — — -2,029
      Other provisions:                
         Research & Experimentation (R&E) tax credit — -1,005 -3,278 -5,187 -6,291 -7,129 -22,890 -67,922
         Suspension of disallowance of certain deductions of mutual life insurance companies — -123 -137 -65 -36 -24 -385 -472
               Total expiring provisions -595 -4,838 -13,877 -18,476 -7,395 -8,403 -52,989 -588,477
Total budget proposals -30,787 -109,124 -100,184 -89,234 -70,996 -71,710 -441,248 -1,307,000
                 
1 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $300 million for 2003, $1,074 million for 2004, $4,783 million for 2005, $4,272 million for 2006, $4,195 million for 2007, $4,142 million for 2008, $18,466 million for 2004-2008, and $25,239 million for 2004-2013.
2 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $213 million for 2004, $543 million for 2005, $714 million for 2006, $796 million for 2007, $886 million for 2008, $3,152 million for 2004-2008, and $3,626 million for 2004-2013.
3 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $3,546 million for 2005, $8,166 million for 2006, $9,251 million for 2007, $9,827 million for 2008, $30,790 million for 2004-2008, and $87,608 million for 2004-2013.
4 Policy proposal with a receipt effect of zero.
5 Net of income offsets.
6 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $20,781 million for 2004-2013.
7 Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $3,744 million for 2004-2013.

Table S–11. Receipts by Source - Summary
(In billions of dollars)
Source 2002
Actual		 Estimates
2003 2004 2005 2006 2007 2008
               
Individual income taxes 858.3 849.1 849.9 934.6 1,014.1 1,103.4 1,175.3
Corporation income taxes 148.0 143.2 169.1 229.3 233.8 237.8 243.7
Social insurance and retirement receipts 700.8 726.6 764.5 810.9 845.8 883.6 922.2
   (On-budget) (185.4) (195.0) (208.4) (221.4) (231.0) (239.1) (249.0)
   (Off-budget) (515.3) (531.6) (556.2) (589.5) (614.8) (644.4) (673.2)
Excise taxes 67.0 68.4 70.9 73.3 75.6 77.8 80.0
Estate and gift taxes 26.5 20.2 23.4 21.1 23.2 20.8 21.2
Customs duties 18.6 19.1 20.7 21.2 23.9 26.0 27.6
Miscellaneous receipts 33.9 34.7 38.5 44.8 46.9 48.8 51.0
Adjustment for revenue uncertainty1 — -25.0 -15.0 — — — —
               
Total, governmental receipts 1,853.2 1,836.2 1,922.0 2,135.2 2,263.2 2,398.1 2,520.9
   (On-budget) (1,337.9) (1,304.7) (1,365.9) (1,545.7) (1,648.4) (1,753.6) (1,847.7)
   (Off-budget) (515.3) (531.6) (556.2) (589.5) (614.8) (644.4) (673.2)
               
1 These amounts reflect an additional adjustment to receipts beyond what the economic and tax models forecast and have been made in the interest of cautious and prudent forecasting.

Table S–12. Comparison of Economic Assumptions
(Calendar years)
  Projections Average
2003–2008
2003 2004 2005 2006 2007 2008
               
Real GDP (billions of 1996 dollars):              
   CBO January 9,673 10,018 10,358 10,697 11,037 11,380  
   Blue Chip Consensus January2 9,704 10,050 10,383 10,709 11,041 11,384  
   2004 Budget 9,710 10,061 10,414 10,760 11,102 11,446  
Real GDP (chain-weighted):1              
   CBO January 2.5 3.6 3.4 3.3 3.2 3.1 3.2
   Blue Chip Consensus January2 2.8 3.6 3.3 3.1 3.1 3.1 3.2
   2004 Budget 2.9 3.6 3.5 3.3 3.2 3.1 3.3
Chain-weighted GDP Price Index:1              
   CBO January 1.6 1.7 2.0 2.1 2.1 2.2 2.0
   Blue Chip Consensus January2 1.6 1.9 2.1 2.1 2.1 2.1 2.0
   2004 Budget 1.3 1.5 1.5 1.7 1.7 1.8 1.6
Consumer Price Index (all-urban):1              
   CBO January 2.3 2.2 2.4 2.5 2.5 2.5 2.4
   Blue Chip Consensus January2 2.2 2.2 2.5 2.6 2.5 2.5 2.4
   2004 Budget 2.2 2.1 2.1 2.2 2.2 2.3 2.2
Unemployment rate:3              
   CBO January 5.9 5.7 5.4 5.3 5.2 5.2 5.5
   Blue Chip Consensus January2 5.9 5.5 5.1 5.1 5.1 5.1 5.3
   2004 Budget 5.7 5.5 5.2 5.1 5.1 5.1 5.3
Interest rates:3              
   91-day Treasury bills:              
      CBO January 1.4 3.5 4.8 4.9 4.9 4.9 4.1
      Blue Chip Consensus January2 1.6 2.9 4.2 4.4 4.6 4.4 3.7
      2004 Budget 1.6 3.3 4.0 4.2 4.2 4.3 3.6
   10-year Treasury notes:              
      CBO January 4.4 5.2 5.7 5.8 5.8 5.8 5.4
      Blue Chip Consensus January2 4.4 5.2 5.6 5.8 5.7 5.7 5.4
      2004 Budget 4.2 5.0 5.3 5.4 5.5 5.6 5.2
               
1 Year over year percent change.
2 January 2003 Blue Chip Consensus forecast for 2003 and 2004; Blue Chip October 2002 long run extension for 2005 - 2008.
3 Annual averages, percent.

Table S–13. Baseline Summary by Category
(In billions of dollars)
  2002 2003 2004 2005 2006 2007 2008 Total
2004–2008
                 
Outlays:                
   Discretionary:                
      Defense (050) 349 375 383 393 400 411 421 2,008
      Nondefense 385 410 412 420 424 432 441 2,130
         Total, Discretionary 734 785 795 813 825 843 862 4,138
   Mandatory:                
      Social Security 452 474 493 512 533 559 587 2,684
      Medicare 228 241 249 262 268 285 302 1,367
      Medicaid and SCHIP 151 167 182 198 215 233 252 1,079
      Other 274 303 297 298 302 309 323 1,529
         Total, Mandatory 1,106 1,185 1,221 1,269 1,318 1,387 1,465 6,660
   Net interest 171 161 173 193 205 211 214 996
Total Outlays 2,011 2,131 2,189 2,276 2,384 2,440 2,541 11,794
Receipts 1,853 1,867 2,031 2,235 2,352 2,469 2,593 11,681
   Surplus/deficit -158 -264 -158 -40 5 29 51 -114
                 
   On-budget deficit -317 -425 -330 -237 -207 -199 -192 -1,170
   Off-budget surplus 160 160 172 197 211 228 243 1,056
                 

Table S–14. Federal Government Financing and Debt
(In billions of dollars)
Function 2002
Actual		 Estimates
2003 2004 2005 2006 2007 2008
               
Financing:              
   Unified budget deficit (-) -158 -304 -307 -208 -201 -178 -190
               
   Financing other than the change in debt held by the public:              
      Premiums paid (-) on buybacks of Treasury securities -4 — — — — — —
      Net purchases (-) of non-Federal securities by the National Railroad Retirement Investment Trust -2 -17 -* 1 1 1 1
      Changes in:1              
         Treasury operating cash balance -17 11 — — — — —
         Compensating balances2 -14 -10 37 — — — —
         Checks outstanding, etc.3 -12 -4 — — — — —
      Seigniorage on coins 1 1 1 1 1 1 1
      Less: Net financing disbursements:              
         Direct loan financing accounts -15 -16 -19 -15 -20 -20 -21
         Guaranteed loan financing accounts -2 1 1 * 2 2 2
            Total, financing other than the change in debt held by the public -63 -34 20 -12 -16 -16 -17
Total, requirement to borrow from the public -221 -338 -288 -220 -216 -194 -206
               
   Change in debt held by the public 221 338 288 220 216 194 206
               
Change in Debt Subject to Statutory Limitation:              
   Change in debt held by the public 221 338 288 220 216 194 206
   Change in debt held by Government accounts 208 216 281 296 300 310 324
   Change in other factors * 16 * * * * 1
      Total, change in debt subject to statutory limitation 429 569 569 517 516 505 531
               
Debt Subject to Statutory Limitation, End of Year:              
   Debt issued by Treasury 6,171 6,725 7,294 7,811 8,327 8,832 9,363
   Adjustment for Treasury debt not subject to limitation and agency debt subject to limitation4 -15 -* -* -* -* -* -*
   Adjustment for discount and premium5 6 6 6 6 6 6 6
         Total, debt subject to statutory limitation6 6,161 6,731 7,300 7,817 8,333 8,837 9,368
               
Debt Outstanding, End of Year:              
   Gross Federal debt7 :              
      Debt issued by Treasury 6,171 6,725 7,294 7,811 8,327 8,832 9,363
      Debt issued by other agencies 27 27 27 26 26 26 25
         Total, gross Federal debt 6,198 6,752 7,321 7,837 8,353 8,858 9,388
   Held by:              
      Debt held by Government accounts 2,658 2,874 3,155 3,451 3,751 4,061 4,385
      Debt held by the public8 3,540 3,878 4,166 4,387 4,603 4,797 5,003
               
1 A decrease in the Treasury operating cash balance or compensating balances (which are assets) would be a means of financing a deficit and therefore has a positive sign. An increase in checks outstanding (which is a liability) would also be a means of financing a deficit and therefore also has a positive sign.
2 Compensating balances are non-interest bearing Treasury bank deposits that Treasury mainly uses to compensate banks for collecting taxes and non-tax receipts under financial agency agreements. The Administration is proposing legislation to replace them with an appropriation in 2004.
3 Besides checks outstanding, includes accrued interest payable on Treasury debt, miscellaneous liability accounts, allocations of special drawing rights; and, as an offset, cash and monetary assets (other than the Treasury operating cash balance and compensating balances), miscellaneous assets accounts, and profit on sale of gold.
4 Consists primarily of Federal Financing Bank debt in 2002.
5 Consists of unamortized discount (less premium) on pubic issues of Treasury notes and bonds (other than zero-coupon bonds) and unrealized discount on Government account series securities.
6 The statutory debt limit is $6,400 billion.
7 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 measured at face value less unrealized discount (if any).
8 At the end of 2002, the Federal Reserve Banks held $604.2 billion of federal securities and the rest of the public held $2,936.2 billion. Debt held by the Federal Reserve Banks is not estimated for future years.

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