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

Report No: 571
Date: 01/25/2002

1. LAW NUMBER: P.L.107-123 (H.R. 1088)
2. BILL TITLE: Investor and Capital Markets Fee Relief Act
3. BILL PURPOSE: Reduces the rates of fees charged by the Securities and Exchange Commission (SEC) for securities transactions, and eliminates the general revenue component of such fees; also establishes pay parity for employees of the SEC with other financial regulatory agencies.
4. OMB ESTIMATE: P.L. 107-123 decreases revenues by eliminating the general revenue portion of the fees charged by the SEC for securities transactions.

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Net costs....................................	0	1,455	1,947	2,174	2,429	2,716

 

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2001	2002	2003	2004	2005	2006
Net costs....................................	0	1,261	1,804	1,984	2,152	2,317

 

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

CBO scores pay-as-you-go costs of $9.5 billion over the 2002 through 2006 period, $1.2 billion less than OMB. This difference is due to the fact that CBO's baseline estimate for these fees was lower than OMB's.

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..............	5,503	18,467	23,827	23,536	22,825	8,222
Receipt effect............	-69,768	-36,405	-86,787	-106,309	-107,740	-126,468
Net costs....................	75,271	54,872	110,614	129,845	130,565	134,690