OMB COST ESTIMATE FOR PAY-AS-YOU-GO
CALCULATIONS
Report No: 507 Date: 06/08/2000
1. LAW NUMBER: P.L.106-200 (H.R. 434)
2. BILL TITLE: Trade and Development Act of 2000
3. BILL PURPOSE: Authorizes expanded trade benefits
to eligible sub-Saharan African and Caribbean Basin countries, authorizes permanent
normal trade relations status for Albania and Kyrgyzstan, and includes other
changes to U.S. trade laws.
4. OMB ESTIMATE: P.L. 106-200 expands tariff preferences
to 48 sub-Saharan African and 27 Caribbean Basin countries. In addition, the
Act reduces tariffs for certain worsted wool fabric. OMB estimates that, in
total, these changes will reduce revenues by $505 million in 2001, and $3 billion
over the period 2001 through 2005. The Act also accelerates the rum excise tax
cover over payments to Puerto Rico and the Virgin Islands, which were delayed
in Public Law 106-170. This shifts $32 million in payments from 2001 to 2000.
Several other provisions also have small pay-as-you-go effects on outlays.
|
(Fiscal years; in millions of
dollars) |
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
Outlay effect............ |
32 |
-28 |
5 |
5 |
5 |
4 |
Receipt effect.......... |
-8 |
-505 |
-583 |
-631 |
-666 |
-653 |
Net costs................. |
40 |
477 |
588 |
636 |
671 |
657 |
5. CBO ESTIMATE:
|
(Fiscal years; in millions of
dollars) |
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
Outlay effect............ |
52 |
-47 |
5 |
5 |
5 |
4 |
Receipt effect........... |
-8 |
-442 |
-507 |
-541 |
-573 |
-557 |
Net costs................. |
60 |
395 |
512 |
546 |
578 |
561 |
6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
The differences between OMB and CBO estimates are the result of
different baselines and estimating models.
7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO
DATE:
|
(Fiscal years; in millions of
dollars) |
|
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
Outlay effect.............. |
34 |
-99 |
-100 |
-108 |
-108 |
-109 |
Receipt effect............ |
-8 |
-620 |
-698 |
-746 |
-781 |
-768 |
Net costs.................... |
42 |
521 |
598 |
638 |
673 |
659 |
*$500,000 or less.
NOTE: The cumulative effect of
direct spending and revenue legislation enacted to date is currently estimated
to result in an end-of-session sequester. The Administration looks forward to
working with the Congress to ensure that an unintended sequester does not
occur.
|