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

Report No: 554
Date: 06/13/2001

1. LAW NUMBER: P.L.107-15 (H.R. 1727)
2. BILL TITLE: Fallen Hero Survivor Benefit Fairness Act
3. BILL PURPOSE: Extends the exclusion from gross income for Federal income tax purposes of annuities paid to survivors of public safety officers killed in the line of duty to amounts paid with respect to officers dying on or before December 31, 1996.

 

4. OMB ESTIMATE: Under previous law, certain amounts paid as a survivor annuity on account of death of a public safety officer, who was killed in the line of duty after December 31, 1996, is excludable from gross income for Federal income tax purposes. P.L. 107-15 extends this exemption to officers who were killed before that time.

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Net costs....................................	0	2	4	4	4	4

 

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Net costs....................................	1	7	5	5	5	4

 

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

The difference between OMB and CBO is the result of different estimating models and assumptions about the timing of tax receipts.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Outlay effect..............	3	12,187	14,545	15,740	16,853	0
Receipt effect............	0	-3,865	-3,924	-3,600	-3,824	-4
Net costs....................	3	16,052	18,469	19,340	20,677	4

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.