Skip Main Navigation
Office of Management and Budget
About OMB
President's Budget
Management
Information &
Regulatory Affairs
Legislative Information
Agency Information

OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 572
Date: 01/25/2002

  1. LAW NUMBER: P.L. 107-134 (H.R. 2884)

  2. BILL TITLE: Victims of Terrorism Relief Act

  3. BILL PURPOSE: Extends tax benefits currently available to service members and U.S. civilian employees killed as a result of military or terrorist activity outside the United States to victims and survivors of the September 11, 2001, terrorist attacks and the April 19, 1995, Oklahoma City bombing, and victims who died from anthrax exposure.

    4.  

  4. OMB ESTIMATE: For those who died as a result of the September 11th terrorist attacks, anthrax exposure, and the Oklahoma City bombing, H.R. 2884 waives income tax liability, provides tax-free treatment of death benefits, and provides an estate tax reduction. In addition, the Act changes the taxation of certain benefits related to death or injury from terrorist actions or certain other disasters.

    5. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlays. . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 0
    Receipts. . . . . . . . . . . . . . . . . . . . 0 -135 -79 -10 -4 -6
    Net costs. . . . . . . . . . . . . . . . . . . . 0 135 79 10 4 6

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlays. . . . . . . . . . . . . . . . . . . . . 0 2 0 0 0 0
    Receipts . . . . . . . . . . . . . . . . . . . . 0 -188 -96 -14 -6 -6
    Net costs. . . . . . . . . . . . . . . . . . . . 0 190 96 14 6 6

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES: The difference between OMB and CBO estimates is the result of different baselines and estimating models.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlay effect.............. 5,503 18,467 23,827 23,536 22,825 8,222
    Receipt effect............ -69,768 -36,540 -86,866 -106,319 -107,744 -126,474
    Net costs.................... 75,271 55,007 110,693 129,855 130,569 134,696