Congressional Budget OfficeSkip Navigation
Home Red Bullet Publications Red Bullet Cost Estimates Red Bullet About CBO Red Bullet Press Red Bullet Employment Red Bullet Contact Us Red Bullet Director's Blog Red Bullet   RSS
PDF

July 21, 1999
 

Honorable John R. Kasich
Chairman
Committee on the Budget
U.S. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

In response to questions transmitted to us by your staff, I have enclosed a table that estimates the impact on April's Congressional Budget Resolution of substituting the tax cuts described in the manager's amendment to the bill recently passed by the Ways and Means Committee for the tax cuts in the April Resolution. As the table indicates, even with the greater tax cuts found to the Ways and Means bill, the revised Resolution would still produce on-budget surpluses in every year from 2000 to 2009 and a cumulative on-budget surplus of $257 billion.

I hope this information is useful to you.

Sincerely,

Dan L. Crippen
 

cc: Honorable John M. Spratt, Jr., Ranking Democratic Member

Enclosure
 
 

 
CBO Estimate of the Congressional Budget Resolution for Fiscal Year 2000 using Ways & Means tax cut proposal (amended)
(By fiscal year, in billions of dollars)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total
2000-
2009
Baseline Deficit (-) or Surplus
 
On-Budget -4 14 38 82 75 85 92 129 146 157 178 996
Off-Budget 125 147 155 164 172 181 195 205 217 228 235 1,901
 
Total 121 161 193 246 247 266 286 334 364 385 413 2,896
 
Effect on the Surplus of the Budget Resolution's Policies (with amended House tax cut proposal)a
 
Revenues 0 -4 -16 -34 -45 -56 -85 -102 -110 -143 -195 -791
 
Outlays
Discretionary 0 0 0 0 10 6 -6 -24 -42 -55 -70 -180
Mandatory 0 -0 1 1 1 1 1 -0 -0 -1 -1 4
Net interest 0 0 1 2 4 8 12 16 21 26 33 123
Subtotal 0 0 1 3 16 15 6 -7 -21 -29 -38 -53
 
Total 0 -5 -18 -38 -61 -71 -91 -94 -90 -114 -157 -738
 
Surplus or Deficit (-) Under the Policies of the Budget Resolution as Estimated by CBO
 
On-Budget -4 10 20 45 14 14 1 34 57 43 21 257
Off-Budget 125 147 155 164 172 181 195 205 217 228 235 1,901
 
Total 120 157 175 209 186 195 195 240 274 271 256 2,158
 
Memorandum:
Debt Held by the Public
Baseline 3,618 3,473 3,297 3,066 2,835 2,584 2,312 1,992 1,640 1,267 865 n.a.
Budget resolution as estimated by CBO 3,618 3,478 3,319 3,126 2,956 2,776 2,595 2,369 2,107 1,848 1,603 n.a.
SOURCE: Congressional Budget Office.
NOTE: n.a. = not applicable.
a. These projections assume that discretionary outlays will follow the path specified in Concurrent Resolution on the Budget for Fiscal Year 2000 with two exceptions. The effect of the 1999 supplemental appropriations bill (P.L. 106-31), which was enacted after the resolution was passed, has been added to the resolution totals. Also, the projections include spending from contingent emergencies. Such spending was excluded from the fiscal year 2000 resolution.
b. Less than $500 million.