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Table S–1. Budget Totals
(Dollar amounts in billions)

	2004	2005	2006	2007	2008	2009	2010
Budget Totals:
Receipts	1,880	2,053	2,178	2,344	2,507	2,650	2,821
Outlays	2,292	2,479	2,568	2,656	2,758	2,883	3,028
Deficit	−412	−427	−390	−312	−251	−233	−207
Gross Domestic Product (GDP)	11,553	12,227	12,907	13,617	14,349	15,111	15,906
Budget Totals as a Percent of GDP:
Receipts	16.3%	16.8%	16.9%	17.2%	17.5%	17.5%	17.7%
Outlays	19.8%	20.3%	19.9%	19.5%	19.2%	19.1%	19.0%
Deficit	3.6%	3.5%	3.0%	2.3%	1.7%	1.5%	1.3%

Table S–2. Discretionary Totals
(Net budget authority; dollar amounts in billions)

		Actual				2005 Enacted	2006 Request	2005–2006
		2001	2002	2003	2004			Dollar change
	Discretionary budget authority:
	Department of Defense	303	328	365	376	400	419	19
	Homeland Security (non-Department of Defense)	10	13	24	28	31	32	1
	Other Operations of Government	331	351	370	386	391	389	−3
	Total, Discretionary budget authority	644	691	758	790	823	840	18
	Percent change by category:
	Department of Defense	5%	8%	11%	3%	6%	5%
	Homeland Security (non-Department of Defense)	14%	21%	85%	21%	10%	3%
	Other Operations of Government	15%	6%	5%	4%	1%	−1%
	Total, Percent change	10%	7%	10%	4%	4%	2%
	Enacted supplemental and emergency funding:
	Defense and Other Global War on Terror	14	18	80	114	1	—
	Homeland Security (non-Department of Defense)	3	12	6	*	*	—
	Non-Defense, Non-Homeland	3	14	5	3	11	—
	Allowance for anticipated 2005 supplemental	—	—	—	—	81	—
	Total, Supplemental and emergency funding	20	44	91	117	93	—
	Memorandum:
	Budget authority enacted for Project BioShield	—	—	—	1	3	—
			2006	2007	2008	2009	2010
	Discretionary Outyears by Category:
	Department of Defense		419	443	462	482	492
	Homeland Security (non-Department of Defense)		32	34	35	37	39
	Other Operations of Government		389	389	389	389	389
	Total, Discretionary budget authority		840	866	887	908	920
	Percent change by category:
	Department of Defense			6%	4%	4%	2%
	Homeland Security (non-Department of Defense)			5%	5%	5%	5%
	Other Operations of Government			0%	0%	0%	0%
	Total, Percent change			3%	2%	2%	1%

*$500 million or less.

Table S–3. Growth in Discretionary Budget Authority by Major Agency
(Net budget authority; dollar amounts in billions)

									Growth
	Actual					Estimate			2005–2006			Average	Cumulative
Agency	2001	2002	2003	2004		2005	2006		Change	Percent		2001–2006	2001–2006
Agriculture	19.2	20.1	21.7	21.1		21.4	19.4		−2.0	−9.6%		0.1%	0.7%
Commerce	5.1	5.4	5.6	5.8		6.3	9.4		3.1	49.0%		13.0%	84.5%
Defense	302.5	327.8	365.3	375.7		400.1	419.3		19.3	4.8%		6.7%	38.6%
Education	40.1	48.5	53.1	55.7		56.6	56.0		−0.5	−0.9%		6.9%	39.8%
Energy	20.0	20.9	22.0	23.4		23.9	23.4		−0.5	−2.0%		3.2%	17.1%
Health and Human Services	54.0	59.5	65.7	69.2		69.2	68.9		−0.3	−0.5%		5.0%	27.5%
Homeland Security	14.0	15.7	21.9	27.9		29.0	29.3		0.3	1.2%		16.0%	109.7%
Housing and Urban Development	28.4	29.4	30.1	32.0		32.2	28.5		−3.7	−11.5%		0.1%	0.5%
Interior	10.3	10.5	10.5	10.7		10.8	10.6		−0.1	−1.1%		0.7%	3.7%
Justice	18.4	18.6	19.0	19.5		20.2	19.1		−1.1	−5.5%		0.8%	3.9%
Labor	11.9	12.1	11.8	11.8		12.0	11.5		−0.5	−4.4%		−0.7%	−3.6%
State and International Assistance Programs	20.3	21.7	22.8	25.0		27.5	31.8		4.3	15.7%		9.4%	56.4%
Transportation	14.6	12.8	13.5	13.9		12.7	11.8		−0.9	−6.7%		−4.1%	−18.8%
Treasury	10.3	10.5	10.7	10.7		11.2	11.6		0.4	3.9%		2.4%	12.7%
Veterans Affairs	22.4	23.8	26.4	29.1		30.6	31.3		0.7	2.1%		6.9%	39.8%
Corps of Engineers	4.7	4.5	4.6	4.6		4.7	4.3		−0.3	−7.2%		−1.6%	−7.6%
Environmental Protection Agency	7.8	7.9	8.1	8.4		8.0	7.6		−0.5	−5.6%		−0.7%	−3.4%
Executive Office of the President	0.3	0.3	0.3	0.3		0.3	0.3		−0.0	−1.7%		4.6%	25.5%
Judicial Branch	4.0	4.3	4.6	4.8		5.1	5.6		0.5	9.9%		7.1%	41.0%
Legislative Branch	2.8	3.0	3.4	3.6		3.6	4.1		0.5	13.7%		8.2%	48.1%
National Aeronautics and Space Administration	14.3	14.8	15.3	15.4		16.1	16.5		0.4	2.4%		2.9%	15.5%
National Science Foundation	4.4	4.8	5.3	5.6		5.5	5.6		0.1	2.4%		4.8%	26.5%
Social Security Administration	6.0	6.4	6.7	7.2		7.5	7.7		0.2	2.8%		4.9%	27.3%
Other Agencies	8.1	7.7	10.0	9.0		8.4	6.6		−1.7	−20.8%		−4.0%	−18.4%
Total, Discretionary Spending	643.8	691.0	758.5	790.1		822.7	840.3		17.6	2.1%		5.5%	30.5%

Note: Supplementals are excluded.

Table S–4. Discretionary Proposals By Appropriations Subcommittee
(Net budget authority in billions of dollars)

Appropriations Subcommittee	2004 Actual	2005 Enacted	2006 Request	Change 2005–2006
Agriculture and Rural Development	17.8	18.3	16.9	−1.4
Commerce, Justice, State and the Judiciary	39.2	40.8	44.1	3.2
Defense	366.4	390.4	407.6	17.3
District of Columbia	0.5	0.6	0.6	*
Energy and Water Development	27.4	28.3	27.2	−1.0
Foreign Operations	17.5	19.5	22.8	3.3
Homeland Security	27.9	29.0	29.3	0.3
Interior and Related Agencies	20.2	20.2	19.7	−0.5
Labor, Health and Human Services, and Education	140.9	142.4	141.0	−1.4
Legislative Branch	3.5	3.5	4.0	0.5
Military Construction	9.4	10.0	12.1	2.0
Transportation, Treasury, and General Government	27.7	26.3	25.0	−1.4
Veterans Affairs, Housing and Urban Development	91.6	93.5	90.5	−3.0
Allowances	—	—	−0.4	−0.4
Total, excluding supplemental and emergency funding	790.1	822.7	840.3	17.6

*$500 million or less.

Table S–5. Homeland Security Funding By Agency
(Budget authority in millions of dollars)

	2004	2005	2006
	Actual	Enacted	Request
Homeland Security Funding:
Department of Agriculture	411	600	704
Department of Commerce	125	167	183
Department of Defense-Military (DOD)	7,024	8,570	9,513
Department of Energy	1,364	1,562	1,666
Department of Health and Human Services	4,062	4,230	4,407
Department of Homeland Security	22,834	24,871	27,331
Department of the Interior	83	65	57
Department of Justice	2,165	2,678	3,104
Department of State	696	824	938
Department of Transportation	284	182	192
Department of the Treasury	90	101	111
Department of Veterans Affairs	271	280	299
Corps of Engineers	102	89	72
Environmental Protection Agency	131	107	184
General Services Administration	79	65	80
National Aeronautics and Space Administration	207	218	205
National Science Foundation	340	342	344
Smithsonian Institution	78	75	87
Social Security Administration	143	159	178
Other Agencies	239	813	288
Total, Homeland Security Funding, excluding Project BioShield  1	40,728	45,998	49,943
Less, Department of Defense-Military (DOD)	−7,024	−8,570	−9,513
Total, Homeland Security Funding, excluding DOD and Project BioShield	33,704	37,428	40,430
Less, Mandatory Homeland Security Funding 2	−1,940	−2,225	−2,302
Less, Discretionary Fee-Funded Activities 3	−3,289	−3,941	−5,890
Net Non-DOD Discretionary Homeland Security, excluding Project BioShield	28,475	31,262	32,238
Plus, Department of Homeland Security Project BioShield	885	2,508	—
Net Non-DOD Discretionary Homeland Security, including Project BioShield	29,360	33,770	32,238

¹ Excludes $107 million in supplemental appropriations in 2004 and $16 million in supplemental appropriations in 2005.
² Mandatory homeland security programs include Agriculture 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. Mandatory Proposals
(In millions of dollars)

	2005	2006	2007	2008	2009	2010	Total
							2006–2010	2006–2015
Programmatic Reforms:
Agriculture:
Commodity Credit Corporation:
Limit Loan Deficiency Payments to historical production	—	−432	−509	−106	−4	−2	−1,053	−1,054
Tighten payment limits	—	−200	−190	−175	−150	−130	−845	−1,200
Cut Crop Payments by 5 percent	—	−383	−629	−468	−351	−309	−2,140	−3,641
Sugar marketing assessment 1.2 percent	—	−42	−43	−43	−43	−43	−214	−437
Tilt adjustment requirement	—	−130	−80	−50	−50	−50	−360	−610
Extend Milk Income Loss Compensation	—	600	600	—	—	—	1,200	1,200
Crop insurance coverage change	—	—	−140	−140	−140	−140	−560	−1,260
Forest Service:
Facilities working capital fund	—	−5	−1	−1	—	—	−7	−7
Enhanced facilities disposal authority	—	−9	—	—	−5	—	−14	−14
Limit Food Stamp categorical eligibility	—	−57	−113	−112	−111	−114	−507	−1,124
Allow State Food Stamp Agencies to use the National Directory of New Hires (NDNH)	—	—	−2	−2	−2	−2	−8	−18
Subtotal, Agriculture	—	−658	−1,107	−1,097	−856	−790	−4,508	−8,165
Education:
Reform the Federal Student Aid Programs:
Payoff Pell Shortfall (non-add BA only)	—	(4,301)	—	—	—	—	(4,301)	(4,301)
Increase the Pell Grant Maximum Award by $500 over Five Years	—	101	509	915	1,321	1,734	4,580	14,959
Increase Borrowing Limits and Other Benefits to Students	—	221	660	762	811	866	3,320	7,658
Recall Federal Perkins Loan Revolving Funds	—	−580	−642	−675	−735	−697	−3,329	−5,987
Increase Lender Risk Sharing and Improve Program Efficiency	—	−171	−601	−785	−838	−902	−3,297	−8,749
Adjust Guaranty Agency Reinsurance and Default Retention Rates	—	−43	−116	−152	−168	−187	−666	−1,788
Reform Federal Consolidation Loans	—	−269	−610	−544	−484	−503	−2,410	−3,769
Extend the Taxpayer-Teacher Extension Act	—	−254	−411	−449	−459	−485	−2,058	−4,945
Other Student Loan Reforms	557	−178	−790	−824	−783	−811	−3,386	−8,043
Subtotal, Education	557	−1,172	−2,001	−1,752	−1,337	−986	−7,248	−10,667
Energy:
Allow Power Marketing Administrations to Charge up to Market Rates	—	−40	−157	−446	−1,145	−1,406	−3,194	−12,434
Bonneville Power Administration borrowing authority	—	—	—	—	—	140	140	200
Subtotal, Energy	—	−40	−157	−446	−1,145	−1,266	−3,054	−12,234
Health and Human Services:
Medicaid and State Children’s Health Insurance Program Proposals	225	1,112	−1,549	−3,699	−4,214	−4,417	−12,767	−44,637
State grants and demonstrations	—	400	500	594	605	618	2,717	5,000
Temporary Assistance for Needy Families Reauthorization	100	277	329	352	361	357	1,676	3,450
Child Support Enforcement: Increase Collections and Improve Program Effectiveness	—	−63	1	54	31	32	55	122
Healthy Marriage and Fatherhood Initiative	−71	−21	37	23	40	40	119	319
State-Based Abstinence Grants	9	30	46	50	50	50	226	476
Foster Care Clarify Statutory Eligibility Definition	—	−72	−74	−77	−79	−81	−383	−834
Foster Care Modify DC FMAP Rate	—	7	7	8	8	8	38	85
Child Welfare Program Option	—	7	67	135	3	−164	48	49
Subtotal, Health and Human Services	263	1,677	−636	−2,560	−3,195	−3,557	−8,271	−35,970
Housing and Urban Development:
Repeal Federal Housing Administration’s General and Special Risk Insurance Authorities	—	−60	−100	−100	−100	−100	−460	−960
Interior:
Southern Nevada Land Sales	—	−227	−418	−636	−641	−642	−2,564	−5,783
Arctic National Wildlife Refuge, lease bonuses:
State of Alaska’s share:
Receipts	—	—	−1,201	−1	−101	−1	−1,304	−1,588
Expenditures	—	—	1,201	1	101	1	1,304	1,588
Federal share:
Receipts	—	—	−1,201	−1	−101	−1	−1,304	−1,588
Royalties Conservation Fund Outlays	—	—	—	—	—	—	—	115
Pick-Sloan Project Cost Repayment	—	−33	−33	−31	−31	−29	−157	−299
Eliminate Bureau of Land Management Range
Improvements Fund	—	−7	−10	−10	−10	−10	−47	−97
Subtotal, Interior	—	−267	−1,662	−678	−783	−682	−4,072	−7,652
Labor:
Pension Benefit Guaranty Corporation Reform	—	−2,195	−3,702	−3,495	−3,226	−2,916	−15,534	−26,521
Unemployment Insurance Integrity	—	—	−65	−134	−141	−148	−488	−1,341
Unemployment Insurance Overpayment Recoveries	—	−281	−282	−284	−288	−288	−1,423	−3,082
Federal Employees’ Compensation Act Reforms	—	−6	−12	−20	−17	−17	−72	−172
Subtotal, Labor	—	−2,482	−4,061	−3,933	−3,672	−3,369	−17,517	−31,116
Treasury:
Continued Dumping and Subsidy Offset repeal	—	−1,608	−1,615	−1,624	−855	−865	−6,567	−11,035
Eliminate 10–year Statute-of-Limitations on Non-Tax Debt	—	−11	−6	−6	−6	−6	−35	−65
Extend the Rum-Carryover for Puerto Rico	—	56	19	—	—	—	75	75
Subtotal, Treasury	—	−1,563	−1,602	−1,630	−861	−871	−6,527	−11,025
Federal Communications Commission (FCC):
Extend Spectrum Auction Authority	—	—	—	1,083	−2,156	−3,239	−4,312	−5,112
Close Telecommunications Development Fund	—	−2	−2	−3	−3	−4	−14	−34
Subtotal, FCC	—	−2	−2	1,080	−2,159	−3,243	−4,326	−5,146
Federal Deposit Insurance Corporation:
Merge Bank Insurance Fund and Savings Association Insurance Fund	—	—	—	−1	377	855	1,231	1,063
Social Security Administration (SSA):
Supplemental Security Income (SSI) Pre-Effectuation Reviews and Other Technical Adjustments	—	−4	−18	−40	−64	−92	−218	−1,133
Extend SSI Eligibility to Refugees and Asylees to Eight Years after Entry	—	65	77	84	—	—	226	226
Subtotal, SSA	—	61	59	44	−64	−92	8	−907
Total, Programmatic Reforms	820	−4,506	−11,269	−11,073	−13,795	−14,101	−54,744	−122,779
User Fee Proposals:
Agriculture:
Animal Plant and Health Inspection Service *	—	−11	−11	−11	−12	−12	−57	−121
Food Safety and Inspection Service *	—	−139	−142	−145	−148	−151	−725	−1,529
Grain Inspection, Packers and Stockyards Administration *	—	−25	−26	−26	−27	−27	−131	−276
Agricultural Marketing Service Standardization *	—	−3	−3	−3	−3	−3	−15	−30
Justice:
Bureau of Alcohol, Tobacco, Firearms and Explosives’ Explosives Regulation *	—	−120	−120	−120	−120	−120	−600	−1,200
Transportation:
St. Lawrence Seaway Development Corporation *	—	−8	−17	−17	−17	−17	−76	−170
Treasury:
Tax and Trade Bureau Regulatory Activity *	—	−29	−29	−29	−29	−29	−145	−297
Veterans Affairs:
Annual Medical Fees for higher income veterans with non-service-connected disabilities *	—	−248	−248	−248	−248	−248	−1,240	−2,480
Drug Copay Increase *	—	−176	−178	−180	−181	−183	−898	−1,842
Total Medical Services (illustrative discretionary spending authority—non-add)	—	(424)	(426)	(428)	(429)	(431)	(2,138)	(4,322)
Environment Protection Agency:
Premanufacture Notification Fee Cap Removal *	—	−4	−8	−8	−8	−8	−36	−76
Pesticide Tolerance *	—	−20	−20	−21	−21	−22	−104	−221
Pesticide Registration *	—	−26	−27	−27	−28	−28	−136	−288
Federal Communications Commission:
Authorize Spectrum License Fees	—	—	−50	−150	−300	−300	−800	−3,125
Analog Spectrum Lease Fees	—	—	−500	−500	−480	−450	−1,930	−2,580
Total, User Fees	—	−809	−1,379	−1,485	−1,622	−1,598	−6,893	−14,235
Total, Programmatic Reforms and User Fee Proposals	820	−5,315	−12,648	−12,558	−15,417	−15,699	−61,637	−137,014
Outlay Effects of Tax Proposals:  1
Health tax credits	—	99	3,757	5,762	6,934	7,638	24,190	69,138
Earned income tax credit	—	−81	−105	−118	−137	−181	−622	−1,569
Child tax credit	—	−34	−45	−50	−59	−77	−265	−670
Total, Outlay effects of tax proposals	—	−16	3,607	5,594	6,738	7,380	23,303	66,899
User Fee Proposals with Mandatory Spending:
Immigration Examination Fees	—	−6	—	—	—	—	−6	−6
Increase Indian Gaming Commission Fees 1	—	—	4	4	5	5	18	43
Foreign Labor Certification User Fees	—	—	—	—	—	—	—	—
Army Corps of Engineers:
Additional Recreation User Fees and Contributions	—	−9	−9	−1	—	—	−19	−19
Total, User fee proposals with mandatory spending	—	−15	−5	3	5	5	−7	18
Other Mandatory Proposals:
Black Lung Disability Trust Fund debt refinancing:
Black Lung Disability Trust Fund	—	3,343	−459	−452	−448	−449	1,535	−1,419
Interest receipts on repayable advances	—	−3,343	459	452	448	449	−1,535	1,419
Use Escrow Account for USPS Retiree Health Benefits:
On-budget effect	—	−3,081	−3,398	−3,716	−3,888	−4,174	−18,257	−43,238
Off-budget effect	—	3,081	3,398	3,716	3,888	4,174	18,257	43,238
Unified budget effect	—	—	—	—	—	—	—	—
Full-time School Attendance Required for Child’s Social Security Benefits at Age 16 (off-budget)	—	−10	−75	−135	−140	−145	−505	−1,326
Correct trust accounting deficiencies in individual
Indian money investments (non-paygo)	6	—	—	—	—	—	—	—
Third scorecard effects	—	31	31	32	32	33	159	334
Total, Other mandatory proposals	6	21	−44	−103	−108	−112	−346	−992
Grand Total (including outlay costs of tax proposals)	826	−5,325	−9,090	−7,064	−8,782	−8,426	−38,687	−71,089
Memorandum:
Paygo	820	−5,346	−9,046	−6,961	−8,674	−8,314	−38,341	−70,097
Non-Paygo	6	21	−44	−103	−108	−112	−346	−992

¹ Affects both receipts and outlays. Only the outlay effect is shown here.
* The Administration will work with the Congress to reclassify the enacted fees as discretionary beginning in 2007. Once reclassified, the Administration proposes to offset these fees against discretionary spending. Discretionary totals in those years will be reduced by these fees.

Table S–7. Effect of Proposals on Receipts
(In millions of dollars)

	2005	2006	2007	2008	2009	2010	Total
							2006–2010	2006–2015
Make Permanent Certain Tax Cuts Enacted in 2001 and 2003 (assumed in the baseline):
Dividends tax rate structure	309	509	547	537	−16,725	−568	−15,700	−102,905
Capital gains tax rate structure	—	—	—	−5,268	−7,473	−5,076	−17,817	−59,016
Expensing for small business	—	—	—	−3,402	−5,417	−4,073	−12,892	−21,897
Marginal individual income tax rate reductions	—	—	—	—	—	—	—	−502,228
Child tax credit 1	—	—	—	—	—	—	—	−96,777
Marriage penalty relief 2	—	—	—	—	—	—	—	−36,029
Education incentives	—	—	—	—	—	3	3	−8,687
Repeal of estate and generation-skipping transfer taxes, and modification of gift taxes	4	−557	−910	−1,514	−1,847	−2,192	−7,020	−256,057
Modifications of pension plans	—	—	—	—	—	—	—	−2,323
Other incentives for families and children	—	—	—	—	—	5	5	−3,594
Total make permanent certain tax cuts enacted in 2001 and 2003	313	−48	−363	−9,647	−31,462	−11,901	−53,421	−1,089,513
Tax Incentives:
Simplify and encourage saving:
Expand tax-free savings opportunities	—	3,709	7,151	4,069	1,693	199	16,821	1,461
Consolidate employer-based savings accounts	—	−224	−335	−357	−382	−411	−1,709	−14,816
Establish Individual Development Accounts (IDAs)	—	—	−134	−286	−326	−300	−1,046	−1,763
Total simplify and encourage saving	—	3,485	6,682	3,426	985	−512	14,066	−15,118
Invest in health care:
Provide a refundable tax credit for the purchase of health insurance 3	—	−19	−1,435	−1,543	−1,370	−1,241	−5,608	−9,897
Provide an above-the-line deduction for high-deductible insurance premiums	—	−200	−2,029	−2,316	−2,636	−2,876	−10,057	−28,495
Provide a refundable tax credit for contributions of small employers to employee HSAs 4	—	−61	−304	−834	−1,545	−2,025	−4,769	−17,760
Improve the Health Coverage Tax Credit 5	—	—	−3	−4	−5	−5	−17	−49
Allow the orphan drug tax credit for certain pre-designation expenses	—	—	—	—	—	—	−1	−3
Total invest in health care	—	−280	−3,771	−4,697	−5,556	−6,147	−20,452	−56,204
Provide incentives for charitable giving:
Permit tax-free withdrawals from IRAs for charitable contributions	−70	−335	−318	−318	−313	−304	−1,588	−3,095
Expand and increase the enhanced charitable deduction for contributions of food inventory	−42	−87	−96	−106	−116	−127	−532	−1,388
Reform excise tax based on investment income of private foundations	—	−148	−98	−105	−111	−119	−581	−1,321
Modify tax on unrelated business taxable income of charitable remainder trusts	−6	−5	−6	−6	−6	−7	−30	−69
Modify basis adjustment to stock of S corporations contributing appreciated property	−4	−20	−21	−25	−28	−32	−126	−354
Repeal the $150 million limitation on qualified 501(c)(3) bonds	−3	−6	−10	−11	−10	−10	−47	−92
Repeal certain restrictions on the use of qualified 501(c)(3) bonds for residential rental property	—	−2	−5	−9	−16	−24	−56	−278
Total provide incentives for charitable giving	−125	−603	−554	−580	−600	−623	−2,960	−6,597
Strengthen education:
Extend, increase, and expand the above-the-line deduction for qualified out-of-pocket classroom expenses	—	−27	−267	−279	−282	−285	−1,140	−2,630
Encourage telecommuting:
Exclude from income the value of employer-provided computers, software, and peripherals	—	−29	−50	−50	−55	−65	−249	−767
Provide assistance to distressed areas:
Establish Opportunity Zones	—	−433	−806	−853	−899	−912	−3,903	−9,594
Provide disaster relief:
Provide tax relief for FEMA hazard mitigation assistance programs	−20	−40	−40	−40	−40	−40	−200	−400
Increase housing opportunities:
Provide tax credit for developers of affordable single-family housing	—	−7	−84	−342	−815	−1,425	−2,673	−17,370
Protect the environment:
Extend permanently expensing of brownfields remediation costs	—	−138	−215	−203	−195	−184	−935	−1,743
Exclude 50 percent of gains from the sale of property for conservation purposes	—	−47	−92	−105	−60	—	−304	−304
Total protect the environment	—	−185	−307	−308	−255	−184	−1,239	−2,047
Increase energy production and promote energy conservation:
Extend the tax credit for producing electricity from wind, biomass, and landfill gas and modify the tax credit for electricity from biomass	−48	−144	−321	−260	−160	−163	−1,048	−1,779
Provide tax credit for residential solar energy systems	−5	−11	−19	−24	−34	−16	−104	−104
Modify treatment of nuclear decommissioning funds	−47	−166	−162	−170	−177	−183	−858	−1,881
Provide tax credit for purchase of certain hybrid and fuel cell vehicles 6	−13	−260	−447	−614	−680	−23	−2,024	−2,532
Provide tax credit for combined heat and power property	−17	−109	−84	−105	−114	−36	−448	−394
Total increase energy production and promote energy conservation	−130	−690	−1,033	−1,173	−1,165	−421	−4,482	−6,690
Restructure assistance to New York City:
Provide tax incentives for transportation infrastructure	—	−200	−200	−200	−200	−200	−1,000	−2,000
Repeal certain New York City Liberty Zone incentives	—	200	200	200	200	200	1,000	2,000
Total restructure assistance to New York City	—	—	—	—	—	—	—	—
Total tax incentives	−275	1,191	−230	−4,896	−8,682	−10,614	−23,232	−117,417
Simplify the Tax Laws for Families:
Simplify adoption tax benefits	—	−4	−40	−42	−43	−45	−174	−426
Clarify eligibility of siblings and other family members for child related tax benefits 7	11	51	78	77	60	40	306	536
Total simplify the tax laws for families	11	47	38	35	17	−5	132	110
Strengthen the Employer-Based Pension System:
Ensure fair treatment of older workers in cash balance conversions and protect defined benefit plans	—	57	62	78	92	104	393	1,096
Strengthen funding for single-employer pension plans	—	151	1,432	−869	−2,699	−1,762	−3,747	−12,735
Reflect market interest rates in lump sum payments	—	—	−3	−8	−15	−20	−46	−241
Total strengthen the employer-based pension system	—	208	1,491	−799	−2,622	−1,678	−3,400	−11,880
Close Loopholes and Improve Tax Compliance:
Combat abusive foreign tax credit transactions	1	2	2	2	2	3	11	26
Modify the active trade or business test	2	6	8	8	8	8	38	87
Impose penalties on charities that fail to enforce conservation easements	3	8	8	8	9	9	42	96
Eliminate the special exclusion from unrelated business taxable income for gain or loss on the sale or exchange of certain brownfields	1	4	12	23	37	49	125	242
Apply an excise tax to amounts received under certain life insurance contracts	2	7	12	17	23	28	87	323
Limit related party interest deductions	74	128	134	141	148	155	706	1,607
Clarify and simplify qualified tuition programs	—	4	12	13	14	20	63	222
Total close loopholes and improve tax compliance	83	159	188	212	241	272	1,072	2,603
Tax Administration, Unemployment Insurance, and Other:
Improve tax administration:
Implement IRS administrative reforms and initiate cost saving measures 8	—	—	—	—	—	—	—	—
Strengthen financial integrity of unemployment insurance:
Strengthen the financial integrity of the unemployment insurance system by reducing improper benefit payments and tax avoidance 6	—	—	6	−6	−129	−530	−659	−2,856
Other proposals:
Modify pesticide registration fee	—	—	—	—	—	—	—	−152
Increase Indian gaming activity fees	—	—	4	4	5	5	18	43
Total tax administration, unemployment insurance, and other	—	—	10	−2	−124	−525	−641	−2,965
Reauthorize Funding for the Highway Trust Fund:
Extend excise taxes deposited in the Highway Trust Fund 6	—	10	11	11	11	11	54	65
Allow tax-exempt financing for private highway projects and rail-truck transfer facilities	−5	−22	−47	−75	−92	−97	−333	−601
Total reauthorize funding for the Highway Trust Fund	−5	−12	−36	−64	−81	−86	−279	−536
Promote Trade:
Implement free trade agreements with Bahrain, Panama and the Dominican Republic 6	—	−56	−84	−91	−97	−102	−430	−976
Extend Expiring Provisions:
Research & Experimentation (R&E) tax credit	—	−2,097	−4,601	−5,944	−6,889	−7,669	−27,200	−76,225
Combined work opportunity/welfare-to-work tax credit	—	−131	−166	−65	−16	−5	−383	−383
First-time homebuyer credit for DC	—	−1	−18	—	—	—	−19	−19
Authority to issue Qualified Zone Academy Bonds	—	−3	−8	−13	−18	−20	−62	−162
Deduction for corporate donations of computer technology	—	−73	−49	—	—	—	−122	−122
Disclosure of tax return information related to terrorist activity 8	—	—	—	—	—	—	—	—
LUST Trust Fund taxes 6	74	152	77	—	—	—	229	229
Abandoned mine reclamation fees	—	304	312	318	322	323	1,579	3,230
Excise tax on coal 6	—	—	—	—	—	—	—	479
Total extend expiring provisions	74	−1,849	−4,453	−5,704	−6,601	−7,371	−25,978	−72,973
Total budget proposals, including proposals assumed in the baseline	201	−360	−3,439	−20,956	−49,411	−32,010	−106,177	−1,293,547
Total budget proposals, excluding proposals assumed in the baseline	−112	−312	−3,076	−11,309	−17,949	−20,109	−52,756	−204,034

¹ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $37,319 million for 2006–2015.
² Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $7,491 million for 2006–2015.
³ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $78 million for 2006, $3,660 million for 2007, $5,514 million for 2008, $6,529 million for 2009, $7,035 million for 2010, $22,816 million for 2006–2010 and $64,078 million for 2006–2015.
⁴ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $18 million for 2006, $87 million for 2007, $237 million for 2008, $392 million for 2009, $589 million for 2010, $1,323 million for 2006–2010 and $4,930 million for 2006–2015.
⁵ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $3 million for 2006, $10 million for 2007, $11 million for 2008, $13 million for 2009, $14 million for 2010, $51 million for 2006–2010 and $130 million for 2006–2015.
⁶ Net of income offsets.
⁷ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$115 million for 2006, -$150 million for 2007, -$168 million for 2008, -$196 million for 2009, -$258 million for 2010, -$887 million for 2006–2010 and -$2,239 million for 2006–2015.
⁸ No net budgetary impact.

Table S–8. Receipts By Source—Summary
(In billions of dollars)

Source	2004 Actual	Estimate
		2005	2006	2007	2008	2009	2010
Individual income taxes	809.0	893.7	966.9	1,071.2	1,167.2	1,245.1	1,353.3
Corporation income taxes	189.4	226.5	220.3	229.8	243.4	252.4	257.6
Social insurance and retirement receipts	733.4	773.7	818.8	866.2	911.7	959.1	1,016.2
(On-budget)	(198.7)	(212.4)	(225.6)	(237.0)	(247.2)	(258.4)	(273.0)
(Off-budget)	(534.7)	(561.4)	(593.2)	(629.2)	(664.6)	(700.7)	(743.2)
Excise taxes	69.9	74.0	75.6	77.2	79.0	81.0	82.9
Estate and gift taxes	24.8	23.8	26.1	23.5	24.3	26.0	20.1
Customs duties	21.1	24.7	28.3	30.6	31.9	33.9	35.3
Miscellaneous receipts	32.6	36.4	41.6	45.6	49.5	52.6	55.4
Total receipts	1,880.1	2,052.8	2,177.6	2,344.2	2,507.0	2,650.0	2,820.9
(On-budget)	(1,345.3)	(1,491.5)	(1,584.4)	(1,715.0)	(1,842.4)	(1,949.3)	(2,077.7)
(Off-budget)	(534.7)	(561.4)	(593.2)	(629.2)	(664.6)	(700.7)	(743.2)

Table S–9. Comparison of Economic Assumptions
(Calendar years)

	Projections							Average
	2005	2006	2007	2008	2009	2010		2005–2010
GDP (billions of current dollars):
2006 Budget	12,392	13,083	13,797	14,537	15,306	16,112
CBO January	12,396	13,059	13,766	14,486	15,210	15,940
Blue Chip Consensus January 1	12,398	13,066	13,763	14,496	15,265	16,098
Real GDP (chain-weighted):  2
2006 Budget	3.6	3.5	3.3	3.2	3.1	3.1		3.3
CBO January	3.8	3.7	3.7	3.4	3.1	2.9		3.5
Blue Chip Consensus January 1	3.6	3.4	3.2	3.2	3.1	3.3		3.3
Chain-weighted GDP Price Index:  2
2006 Budget	1.9	2.0	2.1	2.1	2.1	2.1		2.0
CBO January	1.8	1.5	1.7	1.8	1.8	1.8		1.7
Blue Chip Consensus January 1	2.0	2.0	2.1	2.1	2.1	2.1		2.1
Consumer Price Index (all-urban):  2
2006 Budget	2.4	2.3	2.4	2.4	2.4	2.4		2.4
CBO January	2.4	1.9	2.1	2.2	2.2	2.2		2.2
Blue Chip Consensus January 1	2.5	2.3	2.4	2.4	2.4	2.4		2.4
Unemployment rate:  3
2006 Budget	5.3	5.2	5.1	5.1	5.1	5.1		5.2
CBO January	5.2	5.2	5.2	5.2	5.2	5.2		5.2
Blue Chip Consensus January 1	5.3	5.2	5.1	5.1	5.1	5.1		5.1
Interest rates:  3
91–day Treasury bills:
2006 Budget	2.7	3.5	3.8	4.0	4.1	4.2		3.7
CBO January	2.8	4.0	4.6	4.6	4.6	4.6		4.2
Blue Chip Consensus January 1	3.0	3.8	4.1	4.3	4.2	4.2		3.9
10–year Treasury notes:
2006 Budget	4.6	5.2	5.4	5.5	5.6	5.7		5.3
CBO January	4.8	5.4	5.5	5.5	5.5	5.5		5.4
Blue Chip Consensus January 1	4.7	5.3	5.6	5.6	5.6	5.6		5.4

¹ January 2005 Blue Chip Consensus forecast for 2005 and 2006; Blue Chip October 2004 long-run extension for 2007—2010.
² Year-over-year percent change.
³ Annual averages, percent.
Sources: Congressional Budget Office; Blue Chip Economic Indicators, Aspen Publishers, Inc.

Table S–10. Budget Summary by Category
(In billions of dollars)

	2004	2005	2006	2007	2008	2009	2010
Outlays:
Discretionary:
DOD military	436	443	424	426	445	466	483
Non-DOD	459	487	497	491	488	486	488
Total, Discretionary	895	930	922	917	932	952	971
Proposed Supplemental	—	35	25	18	2	1	—
Mandatory:
Social Security	492	515	540	567	596	630	665
Medicare	265	290	340	381	407	433	460
Medicaid and SCHIP	181	194	199	209	225	245	266
Other	299	337	331	319	324	328	351
Total, Mandatory	1,237	1,337	1,410	1,476	1,551	1,635	1,743
Net Interest	160	178	211	245	272	294	314
Total Outlays	2,292	2,479	2,568	2,656	2,758	2,883	3,028
Receipts	1,880	2,053	2,178	2,344	2,507	2,650	2,821
Deficit	−412	−427	−390	−312	−251	−233	−207
On-budget deficit	−567	−589	−560	−506	−466	−463	−460
Off-budget surplus	155	162	170	194	215	230	252

Table S–11. Current Services Baseline Summary by Category
(in billions of dollars)

	2004	2005	2006	2007	2008	2009	2010
Discretionary:
DOD military	436	443	417	416	428	439	453
Homeland security	25	30	33	34	34	35	36
Other	434	457	464	473	480	487	497
Total, Discretionary	895	930	914	923	942	961	986
Mandatory:
Social Security	492	515	540	567	596	630	666
Medicare	265	290	340	381	407	433	460
Medicaid and SCHIP	181	194	198	211	229	249	271
Other	299	337	337	327	327	333	355
Total, Mandatory	1,237	1,336	1,416	1,485	1,558	1,645	1,752
Net Interest	160	177	209	242	269	291	310
Total Outlays	2,292	2,443	2,539	2,650	2,770	2,897	3,048
Receipts	1,880	2,053	2,178	2,347	2,518	2,668	2,841
Surplus/deficit	−412	−390	−361	−303	−251	−229	−207
On-budget deficit	−567	−552	−534	−500	−469	−462	−462
Off-budget surplus	155	162	173	197	218	233	256

Table S–12. Impact of Budget Policy
(In billions of dollars)

	2005	2006	2007	2008	2009	2010	Total
							2006–2010
Current Services Baseline Deficit	390	361	303	251	229	207	1,351
Proposals:
Discretionary policy:
Department of Defense	—	8	11	18	29	34	99
Homeland security	—	−1	*	1	2	2	5
Other spending	−*	1	−16	−29	−41	−52	−138
Subtotal, discretionary	−*	8	−5	−10	−10	−16	−34
Proposed supplemental	35	26	21	6	5	4	62
Revenue proposals 1	*	*	7	18	26	30	82
Mandatory proposals	1	−5	−13	−14	−17	−18	−68
2006 Budget Deficit	427	390	312	251	233	207	1,393

¹ Includes outlay impact of revenue proposals.
*$500 million or less.
Note: Each line includes debt service.

Table S–13. Baseline Adjustments
(In billions of dollars)

	2005	2006	2007	2008	2009	2010	Total
							2006–2010	2006–2015
Budget Enforcement Act Baseline Deficit	391	369	315	256	213	212	1,364
Extend certain tax provisions:
Permanently extend individual income tax rate cuts	—	—	—	—	—	—	—	502
Permanently extend estate and tax gift changes	−*	1	1	2	2	2	7	256
Extend other provisions of the 2001 and 2003 tax acts 1	−*	−1	−1	8	30	10	46	376
Subtotal, tax extenders	−*	*	*	10	31	12	53	1,134
Assume all emergencies are one-time only	—	−5	−9	−11	−12	−13	−50
Adjust pay factors to more accurately reflect changes
in pay costs	—	−2	−2	−3	−3	−3	−12
Remove special rule for administrative expenses for
certain benefit programs	—	−*	−*	−*	−1	−1	−2
Debt service related to all changes	−*	−*	−1	−1	−1	−1	−3
Current Services Baseline Deficit	390	361	303	251	229	207	1,351

¹ Table S–7 provides a detailed listing of expiring tax provisions in the baseline.
*$500 million or less.

Table S–14. Federal Government Financing and Debt
(In billions of dollars)

	Actual 2004	Estimate
		2005	2006	2007	2008	2009	2010
Financing:
Unified budget deficit (−)	−412	−427	−390	−312	−251	−233	−207
Financing other than the change in debt held by the public:
Net purchases (−) of non-Federal securities by the National Railroad Retirement Investment Trust	−3	−1	1	1	*	*	1
Changes in: 1
Treasury operating cash balance	−1	1	—	—	—	—	—
Compensating balances 2	22	—	—	—	—	—	—
Checks outstanding, etc. 3	7	—	—	—	—	—	—
Seigniorage on coins	1	1	1	1	1	1	1
Less: Net financing disbursements:
Direct loan financing accounts	−5	−9	−13	−20	−21	−20	−21
Guaranteed loan financing accounts	9	9	2	−2	−2	−3	−3
Total, financing other than the change in debt held by the public	30	1	−10	−21	−22	−22	−22
Total, requirement to borrow from the public	−382	−426	−400	−333	−273	−255	−230
Change in debt held by the public	382	426	400	333	273	255	230
Changes in Debt Subject to Limitation:
Change in debt held by the public	382	426	400	333	273	255	230
Change in debt held by Government accounts	213	251	277	309	326	340	364
Change in other factors	1	−13	*	1	1	3	2
Total, change in debt subject to statutory limitation	596	663	676	643	599	598	596
Debt Subject to Statutory Limitation, End of Year:
Debt issued by Treasury	7,328	8,005	8,682	9,325	9,924	10,519	11,114
Adjustment for discount, premium, and coverage 4	6	−8	−8	−8	−8	−6	−5
Total, debt subject to statutory limitation 5	7,333	7,997	8,673	9,316	9,915	10,513	11,109
Debt Outstanding, End of Year:
Gross Federal debt: 6
Debt issued by Treasury	7,328	8,005	8,682	9,325	9,924	10,519	11,114
Debt issued by other agencies	27	26	26	26	25	24	24
Total, gross Federal debt	7,355	8,031	8,708	9,350	9,949	10,544	11,137
Held by:
Debt held by Government accounts	3,059	3,310	3,587	3,896	4,222	4,562	4,926
Debt held by the public 7	4,296	4,721	5,121	5,454	5,727	5,982	6,212
As a percent of GDP	37.2%	38.6%	39.7%	40.1%	39.9%	39.6%	39.1%

¹ A decrease in the Treasury operating cash balance or compensating balances (which are assets) is a means of financing a deficit and therefore has a positive sign. An increase in checks outstanding (which is a liability) is also a means of financing a deficit and therefore also has a positive sign.
² Compensating balances were non-interest bearing Treasury bank deposits that Treasury mainly used to compensate banks for collecting tax and non-tax receipts under financial agency agreements. Most of the balances at the end of 2003 were required to be invested in nonmarketable Depositary Compensation Securities issued by the Treasury; the rest of the balances, and the entire amount in previous years, was invested in the way that the banks decided. The use of compensating balances was discontinued in 2004, and the amounts were drawn down to zero.
³ Besides checks outstanding, includes accrued interest payable on Treasury debt, uninvested deposit fund balances, allocations of special drawing rights, and other liability accounts; and, as an offset, cash and monetary assets (other than the Treasury operating cash balance and compensating balances), other asset accounts, and profit on sale of gold.
⁴ Consists mainly of Federal Financing Bank debt (which is not subject to limit), the unamortized discount (less premium) on public issues of Treasury notes and bonds (other than zero-coupon bonds), and the unrealized discount on Government account series securities.
⁵ The statutory debt limit is $8,184 billion.
⁶ 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 otherwise measured at face value less unrealized discount (if any).
⁷ At the end of 2004, the Federal Reserve Banks held $700 billion of Federal securities and the rest of the public held $3,595 billion. Debt held by the Federal Reserve Banks is not estimated for future years.
* $500 million or less.