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

	2005	2006	2007	2008	2009	2010	2011
Budget Totals:
Receipts	2,154	2,285	2,416	2,590	2,714	2,878	3,035
Outlays	2,472	2,709	2,770	2,814	2,922	3,061	3,240
Deficit	−318	−423	−354	−223	−208	−183	−205
Gross Domestic Product (GDP)	12,290	13,030	13,761	14,521	15,296	16,102	16,955
Budget Totals as a Percent of GDP:
Receipts	17.5%	17.5%	17.6%	17.8%	17.7%	17.9%	17.9%
Outlays	20.1%	20.8%	20.1%	19.4%	19.1%	19.0%	19.1%
Deficit	−2.6%	−3.2%	−2.6%	−1.5%	−1.4%	−1.1%	−1.2%

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

	2006 Enacted	2007 Request	Change: 2006–2007
			Dollar	Percent
Discretionary budget authority:
Department of Defense	410.8	439.3	28.5	6.9%
Homeland Security (non-Department of Defense)	32.1	33.1	1.0	3.3%
Other Operations of Government	400.4	398.3	−2.2	−0.5%
Total, Discretionary budget authority	843.3	870.7	27.3	3.2%
Enacted supplemental and emergency funding:
Global War on Terror	50.0
Hurricane Response 1	4.6
Pandemic Influenza Preparedness	3.8
Total, Enacted supplemental and emergency funding	58.4
Estimated future emergency requests:  2
Global War on Terror	70.0	50.0
Hurricane Response	18.0	—
Pandemic Influenza Preparedness	—	2.3
Total, Estimated future emergency requests	88.0	52.3

¹ In total, $84.5 billion has been provided in 2005 and 2006 for response to the Gulf Coast Hurricanes through both discretionary and mandatory emergency funding, including amounts for the Social Services Block Grant and Flood Insurance.

² Estimated future emergency needs are included as Allowances in the 2007 Budget. The Administration anticipates transmitting official requests for these funds at a later time.

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

Agency	2001 Actual	2006 Enacted	2007 Request	Growth:
				2006–2007		Average	Cumulative
				Dollar	Percent	2001–2007	2001–2007
Agriculture	19.2	21.1	19.7	−1.4	−6.5%	0.4%	2.5%
Commerce	5.1	6.4	6.1	−0.2	−3.7%	3.1%	20.4%
Defense	302.5	410.8	439.3	28.5	6.9%	6.4%	45.2%
Education	40.1	56.5	54.4	−2.1	−3.8%	5.2%	35.7%
Energy	20.0	23.5	23.6	0.0	0.1%	2.7%	17.6%
Health and Human Services	54.0	69.2	67.6	−1.6	−2.3%	3.8%	25.2%
Homeland Security	14.0	30.5	30.9	0.4	1.3%	14.1%	121.0%
Housing and Urban Development	28.4	34.3	33.6	−0.6	−1.8%	2.9%	18.7%
Interior	10.3	10.8	10.1	−0.6	−5.9%	−0.2%	−1.2%
Justice	18.4	21.0	19.5	−1.5	−7.2%	1.0%	6.0%
Labor	11.9	11.3	10.9	−0.4	−3.9%	−1.5%	−8.7%
State and Other International Programs	21.7	30.2	33.9	3.7	12.2%	7.7%	55.8%
Transportation	14.6	14.6	13.2	−1.4	−9.4%	−1.6%	−9.3%
Treasury	10.3	11.5	11.6	0.1	0.5%	1.9%	12.3%
Veterans Affairs	22.4	33.1	35.7	2.6	8.0%	8.1%	59.5%
Corps of Engineers	4.7	5.3	4.7	−0.6	−11.2%	0.2%	1.0%
Environmental Protection Agency	7.8	7.6	7.3	−0.3	−4.0%	−1.1%	−6.6%
Executive Office of the President	0.3	0.3	0.3	−0.0	−0.6%	4.0%	26.4%
Judicial Branch	4.0	5.3	5.9	0.5	9.9%	6.7%	47.9%
Legislative Branch	2.8	3.8	4.3	0.5	12.1%	7.6%	55.1%
National Aeronautics and Space Administration	14.3	16.3	16.8	0.5	3.2%	2.8%	17.8%
National Science Foundation	4.4	5.6	6.0	0.4	7.9%	5.2%	35.9%
Social Security Administration	6.0	7.3	7.9	0.5	6.8%	4.5%	30.2%
Other Agencies	6.7	6.9	7.3	0.4	6.0%	1.5%	9.3%
Total, Discretionary Spending	643.8	843.3	870.7	27.3	3.2%	5.2%	35.2%

Note: Supplementals and emergencies, both enacted and anticipated, are excluded.

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

Appropriations Subcommittee	2006 Enacted	2007 Request	Change 2006–2007
Agriculture and Rural Development	18.5	17.2	−1.3
Defense	399.2	423.2	24.0
Energy and Water Development	30.1	29.4	−0.7
Foreign Operations	20.7	23.7	3.0
Homeland Security	30.5	30.9	0.4
Interior and Environment	25.9	25.2	−0.8
Labor, Health and Human Services, and Education	141.8	137.8	−4.0
Legislative Branch	3.8	4.2	0.5
Military Quality of Life and Veterans Affairs	45.2	52.5	7.3
Science, State, Justice, and Commerce	58.7	59.7	1.0
Transportation, Treasury, Housing and Urban Development, Judiciary, and District of Columbia	68.8	67.1	−1.8
Allowances	—	−0.4	−0.4
Total, excluding supplemental and emergency funding	843.3	870.7	27.3

Notes: Supplementals and emergencies, both enacted and anticipated, are excluded.

The House and Senate adopted different spending committee structures in the 2006 appropriations season.

This table is consistent with the structures in which the 2006 appropriations bills were enacted.

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

	2006		2007 Request
	Enacted	Supplemental
Homeland Security Funding:
Agriculture	564	—	650
Commerce	181	—	218
Defense-Military (DOD) 1	16,441	—	16,699
Energy	1,704	—	1,700
Health and Human Services	4,300	—	4,565
Homeland Security	25,503	173	27,776
Interior	56	—	55
Justice	2,976	16	3,279
State	1,107	—	1,213
Transportation	182	—	206
Treasury	117	—	134
Veterans Affairs	310	—	314
Corps of Engineers	72	—	43
Environmental Protection Agency	129	—	183
General Services Administration	99	—	96
National Aeronautics and Space Administration	213	—	203
National Science Foundation	344	—	387
Smithsonian Institution	83	—	80
Social Security Administration	177	—	184
Other Agencies	304	—	297
Total, Homeland Security Funding  2	54,862	189	58,282
Less, Defense-Military (DOD)	−16,441	—	−16,699
Less, Mandatory Homeland Security Funding 3	−2,232	—	−2,455
Less, Discretionary Fee-Funded Activities 4	−4,127	—	−6,019
Net Non-DOD Discretionary Homeland Security  2	32,062	189	33,109

¹ Reported DOD homeland security funding has been revised upward in all years to reflect better estimating methodologies for DOD homeland security programs. See the Homeland Security Funding Analysis chapter of the Analytical Perspectives volume for more details.

² Amounts are rounded to the nearest million at the account level, which accounts for any discrepancies with the Homeland Security Funding Analysis chapter in the Analytical Perspectives volume.

³ Mandatory homeland security programs include Agriculture Quarantine and Inspections, Border Protection, and Immigration Enforcement.

⁴ 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)

	2006	2007	2008	2009	2010	2011	Total
							2007–2011	2007–2016
Reforms Resulting in Savings:
Agriculture:
Commodity Program changes	—	−1,081	−1,079	−945	−965	−917	−4,988	−8,933
Restrict Food Stamp categorical eligibility	—	−76	−154	−155	−159	−162	−706	−1,585
Allow State Food Stamp agencies to access the National Directory of New Hires (NDNH)	—	—	−1	−1	−1	−1	−4	−9
Subtotal, Agriculture	—	−1,157	−1,234	−1,101	−1,125	−1,080	−5,698	−10,527
Defense:
Increase National Defense Stockpile Sales	—	−1	−50	−72	−80	−96	−299	−347
Energy:
Repeal Oil and Gas Research and Development Program	—	−20	−40	−50	−50	−50	−210	−460
Health and Human Services:
Medicare	—	−2,452	−5,485	−7,948	−9,343	−10,663	−35,891	−105,016
Medicaid/State Children’s Health Insurance Program	—	−723	−876	−1,062	−1,116	−1,168	−4,945	−11,859
Child Support Enforcement	—	−2	−1	−3	−5	−6	−17	−60
Child Welfare Program option	—	22	5	55	−27	−61	−6	−1
Subtotal, Health and Human Services	—	−3,155	−6,357	−8,958	−10,491	−11,898	−40,859	−116,936
Interior:
Arctic National Wildlife Refuge lease bonuses:
State of Alaska’s share:
Receipts	—	—	−3,502	−2	−503	−3	−4,010	−4,025
Expenditures	—	—	3,502	2	503	3	4,010	4,025
Federal share:
Receipts	—	—	−3,502	−2	−503	−3	−4,010	−4,025
Amend Bureau of Land Management (BLM) Land Sale Authority	—	−1	−28	−40	−42	−71	−182	−351
Eliminate BLM Range Improvement Fund	—	−7	−10	−10	−10	−10	−47	−97
Recover Pick-Sloan Project Cost	—	−23	−23	−23	−23	−23	−115	−230
Repeal Energy Bill Fee Prohibition	—	−5	−27	−27	−27	−24	−110	−209
Subtotal, Interior	—	−36	−3,590	−102	−605	−131	−4,464	−4,912
Labor:
Reform Pension Benefit Guaranty Corporation	—	—	−4,195	−4,181	−4,164	−4,140	−16,680	−37,056
Unemployment Insurance Integrity legislation:
Benefit Payment Recoveries	—	—	−482	−515	−365	−376	−1,738	−3,774
Reform Federal Employee’s Compensation Act	—	−3	−8	−10	−11	−13	−45	−140
Subtotal, Labor	—	−3	−4,685	−4,706	−4,540	−4,529	−18,463	−40,970
Treasury:
Eliminate 10-year Statute-of-Limitations on Non-Tax Debt	—	−11	−6	−6	−6	−6	−35	−65
Federal Communications Commission (FCC):
Extend Spectrum Auction Authority	—	—	—	—	—	—	—	−1,000
Terminate the Telecommunications Development Fund	—	−5	−5	−6	−7	−7	−30	−65
Subtotal, FCC	—	−5	−5	−6	−7	−7	−30	−1,065
Office of Personnel Management:
Amend Federal Employee Health Benefits Program Statute	—	−34	−134	−231	−306	−367	−1,072	−3,431
Total, Reforms Resulting in Savings	—	−4,422	−16,101	−15,233	−17,210	−18,164	−71,130	−178,713
User Fee Proposals:
Agriculture:
Food Safety and Inspection Service User Fees*	—	−105	−155	−148	−151	−154	−713	−1,535
Grain Inspection User Fees*	—	−20	−20	−21	−21	−22	−104	−220
Animal Plant Health Inspection User Fees*	—	−8	−11	−11	−12	−12	−54	−117
Agricultural Marketing Service User Fees*	—	−2	−2	−2	−2	−2	−10	−20
Federal Crop Insurance User Fees*	—	—	−15	−15	−15	−15	−60	−135
Health and Human Services:
FDA User Fee Proposal*	—	−26	−27	−27	−28	−28	−135	−286
Homeland Security:
Extend Customs User Fees	—	—	—	—	—	—	—	−5,830
Treasury:
Alcohol and Tobacco Tax and Trade Bureau User Fees*	—	−29	−29	−29	−29	−29	−145	−290
Environmental Protection Agency (EPA):
Pesticide Fees*	—	−56	−66	−53	−53	−53	−281	−546
Pre-Manufacturing Notification Fee*	—	−4	−8	−8	−8	−8	−36	−76
FCC:
Authorize Spectrum License Fees	—	−50	−150	−300	−300	−400	−1,200	−3,625
Total, User Fee Proposals	—	−300	−483	−614	−619	−723	−2,739	−12,680
Subtotal, Reforms Resulting in Savings and User Fee Proposals	—	−4,722	−16,584	−15,847	−17,829	−18,887	−73,869	−191,393
Program Augmentations:
Agriculture:
Exclude retirement savings in Food Stamp Program	—	47	96	145	149	152	589	1,415
Energy:
Bonneville Power Administration borrowing authority	—	—	—	—	—	—	—	200
Health and Human Services:
Medicaid/State Children's Health Insurance Program	—	1,227	686	539	425	601	3,478	6,773
Cover the Kids outreach grants	—	100	100	100	100	100	500	1,000
Grants to States for chronically ill	—	250	375	493	506	523	2,146	5,000
Temporary Assistance for Needy Families	—	40	149	425	473	488	1,575	4,070
Foster Care District of Columbia Federal Medical Assistance Percentage Rate	—	5	6	6	6	6	29	65
Treasury:
Extend the Rum Carryover for Puerto Rico	69	95	24	—	—	—	119	119
Office of Personnel Management:
Make Changes to Federal Retirement Improvement Act	—	—	3	5	7	9	24	85
Social Security Administration:
Extend Supplemental Security Income eligibility for refugees	—	70	75	74	—	—	219	219
Total, Program Augmentations	69	1,834	1,514	1,787	1,666	1,879	8,679	18,946
User Fee Proposals with Mandatory Spending:
Marketing Agreements and Orders User Fees:
Receipts	—	−12	−12	−13	−13	−13	−63	−132
Spending	—	12	12	13	13	13	63	132
Net effect	—	—	—	—	—	—	—	—
Increase Indian Gaming Commission Fees 1	—	—	4	5	5	5	19	44
Foreign Labor Certification User Fees:
Receipts	—	−35	−35	−35	−35	−35	−175	−350
Spending	—	35	35	35	35	35	175	350
Net effect	—	—	—	—	—	—	—	—
Immigration Examination Fees:
Receipts	—	−31	−31	−31	−31	−31	−155	−310
Spending	—	25	31	31	31	31	149	304
Net effect	—	−6	—	—	—	—	−6	−6
Army Corps of Engineers: Additional Recreation User Fees and Contributions:
Receipts	—	−9	−17	−17	−17	−17	−77	−162
Spending	—	—	8	16	17	17	58	143
Net effect	—	−9	−9	−1	—	—	−19	−19
Total, User Fee Proposals with Mandatory Spending	—	−15	−5	4	5	5	−6	19
Subtotal, Including Program Augmentations and User Fee Proposals with Mandatory Spending	69	−2,903	−15,075	−14,056	−16,158	−17,003	−65,196	−172,428
Further Hurricane Response:
National Flood Insurance (emergency)	5,040	560	—	—	—	—	560	560
Social Security Personal Accounts (off-budget)	—	—	—	—	24,182	57,429	81,611	712,144
Outlay Effects of Tax Proposals:  1
Health Tax Credit	—	720	1,250	1,679	1,876	2,015	7,540	19,778
Child Tax Credit	—	—	−383	−368	−422	−427	−1,600	−3,897
Earned Income Tax Credit	—	−188	4	−68	−79	−69	−400	−903
Total, Outlay Effects of Tax Proposals	—	532	871	1,243	1,375	1,519	5,540	14,978
Other Mandatory Proposals:
Use Escrow Account for USPS Retiree Health Benefits:
On-budget effect	−1,220	−1,203	−1,175	−1,140	−1,098	−1,049	−5,665	−10,138
Off-budget effect	1,220	1,203	1,175	1,140	1,098	1,049	5,665	10,138
Unified budget effect	—	—	—	—	—	—	—	—
Refinance Black Lung Disability Trust Fund debt:
Black Lung Disability Trust Fund	—	2,282	−450	−453	−461	−470	448	−3,069
Interest receipts on repayable advances	—	−2,282	450	453	461	470	−448	3,069
Net effect	—	—	—	—	—	—	—	—
County Payments Safety Net:
County Payments	—	78	303	179	120	97	777	777
National Forest Land Sales	—	−78	−303	−179	−120	−97	−777	−777
Net effect	—	—	—	—	—	—	—	—
Full-time Attendance Required for Child’s Social Security Benefits at age 16 (off-budget)	—	−11	−84	−150	−155	−159	−559	−1,461
Enforcement of Windfall Elimination Provision/Government Pension Offset (off-budget)	—	—	—	—	−133	−294	−427	−2,431
Replace Disability Insurance/Worker’s Comp Offset with Uniform Offset (off-budget)	—	−8	−35	−50	−63	−72	−228	−402
Eliminate Lump Sum Death Benefit (off-budget)	—	−171	−203	−205	−205	−205	−989	−2,014
Correct trust accounting deficiencies in individual Indian money investments (non-paygo)	6	—	—	—	—	—	—	—
Indirect Effects (Third Scorecard):
Amend Federal Employee Health Benefits Program statute	—	28	86	139	182	220	655	2,035
Unemployment Insurance Integrity legislation	—	—	−58	−124	−129	−135	−446	−1,215
Food Stamp Impact of Commodity Supplemental Food Program elimination	—	49	61	53	48	45	256	439
Refine Department of Defense Medicare-Eligible Retiree Health Care Accrual Calculation	—	73	77	82	87	92	411	967
Temporary Assistance for Needy Families impact of Social Services Block Grant reduction and Other	—	108	20	−116	−29	−12	−29	−84
Subtotal, Indirect Effects	—	258	186	34	159	210	847	2,142
Total, Other Mandatory Proposals	6	68	−136	−371	−397	−520	−1,356	−4,166
Grand Total	5,115	−1,744	−14,339	−13,182	9,004	41,426	21,166	551,103
Memorandum: Savings Net of Program Augmentations
Medicaid/State Children's Health Insurance Program	—	504	−190	−523	−691	−567	−1,467	−5,086
Food Stamp Program	—	−29	−59	−11	−11	−11	−121	−179

* Once the fees are enacted, the Administration will work to reclassify them to offset discretionary spending beginning in 2008.

¹ Affects both receipts and outlays. Only the outlay effect is shown here. Excludes tax extenders assumed in the baseline.

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

	2006	2007	2008	2009	2010	2011	Total
							2007–2011	2007– 2016
Make Permanent Certain Tax Cuts Enacted in 2001 and 2003 (assumed in the baseline):
Dividends tax rate structure	288	571	−1,329	−14,161	−537	−6,545	−22,001	−128,050
Capital gains tax rate structure	—	—	—	−14,183	−5,519	−6,606	−26,308	−74,931
Expensing for small business	—	—	−4,679	−6,498	−4,872	−3,853	−19,902	−32,620
Marginal individual income tax rate reductions	—	—	—	—	—	−66,918	−66,918	−605,961
Child tax credit 1	—	—	—	—	—	−5,452	−5,452	−116,691
Marriage penalty relief 2	—	—	—	—	—	−4,968	−4,968	−37,578
Education incentives	—	—	—	—	3	−1,098	−1,095	−10,960
Repeal of estate and generation-skipping transfer taxes, and modification of gift taxes	−205	−1,102	−1,728	−2,181	−2,676	−23,758	−31,445	−339,022
Modifications of pension plans	—	—	—	—	—	−346	−346	−2,858
Other incentives for families and children	—	—	—	—	5	−170	−165	−4,362
Total make permanent certain tax cuts enacted in 2001 and 2003	83	−531	−7,736	−37,023	−13,596	−119,714	−178,600	−1,353,033
Tax Incentives:
Simplify and encourage saving:
Expand tax-free savings opportunities	—	4,796	10,407	7,507	3,970	−383	26,297	−122
Consolidate employer-based savings accounts	—	—	−542	−579	−618	−1,826	−3,565	−20,063
Establish Individual Development Accounts (IDAs)	—	—	−134	−286	−326	−300	−1,046	−1,763
Total simplify and encourage saving	—	4,796	9,731	6,642	3,026	−2,509	21,686	−21,948
Encourage entrepreneurship and investment:
Increase expensing for small business	—	−2,522	−3,527	−2,625	−2,037	−1,645	−12,356	−18,713
Invest in health care:
Expand health savings accounts (HSAs) 3	—	−1,978	−4,321	−6,201	−7,720	−8,826	−29,046	−87,212
Provide an above-the-line deduction for high-deductible insurance premiums 4	—	−2,519	−3,815	−3,840	−3,691	−3,668	−17,533	−38,127
Provide refundable tax credit for the purchase of health insurance 5	—	−254	−861	−1,194	−1,404	−1,362	−5,075	−11,154
Improve the Health Coverage Tax Credit 6	—	−1	−3	−4	−5	−5	−18	−51
Allow the orphan drug tax credit for certain pre-designation expenses 7	—	—	—	—	—	—	—	—
Total invest in health care	—	−4,752	−9,000	−11,239	−12,820	−13,861	−51,672	−136,544
Provide incentives for charitable giving:
Permit tax-free withdrawals from IRAs for charitable contributions	—	−102	−510	−512	−501	−497	−2,122	−4,706
Expand and increase the enhanced charitable deduction for contributions of food inventory	—	−44	−96	−106	−116	−127	−489	−1,345
Reform excise tax based on investment income of private foundations	—	−56	−85	−90	−96	−102	−429	−1,074
Modify tax on unrelated business taxable income of charitable remainder trusts	—	−1	−6	−6	−6	−6	−25	−62
Modify basis adjustment to stock of S corporations contributing appreciated property	—	−3	−15	−21	−25	−28	−92	−301
Repeal the $150 million limitation on qualified 501(c)(3) bonds	—	−2	−3	−6	−10	−11	−32	−81
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	—	−210	−720	−750	−770	−795	−3,245	−7,847
Strengthen education:
Extend the above-the-line deduction for qualified out-of pocket classroom expenses	−17	−171	−178	−180	−183	−185	−897	−1,867
Provide assistance to distressed areas:
Establish Opportunity Zones	—	−221	−411	−439	−451	−482	−2,004	−4,960
Protect the environment:
Extend permanently expensing of brownfields remediation costs	−98	−146	−163	−177	−168	−157	−811	−1,503
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	−115	−3,226	−4,268	−8,768	−13,403	−19,634	−49,299	−193,382
Simplify the Tax Laws for Families:
Clarify uniform definition of a child 8	—	17	66	50	32	48	213	395
Simplify EITC eligibility requirement regarding filing status, presence of children, and work and immigration status 9	—	27	−24	−21	−26	−28	−72	−207
Reduce computational complexity of refundable child tax credit 10	—	—	—	—	—	—	—	—
Total simplify the tax laws for families	—	44	42	29	6	20	141	188
Strengthen the Employer-Based Pension System:
Ensure fair treatment of older workers in cash balance conversions and protect defined benefit plans	3	53	62	77	89	100	381	1,039
Strengthen funding for single-employer pension plans	—	536	2,290	−153	−2,336	−1,611	−1,274	−9,180
Reflect market interest rates in lump sum payments	—	—	−3	−9	−17	−24	−53	−274
Total strengthen the employer-based pension system	3	589	2,349	−85	−2,264	−1,535	−946	−8,415
Close Loopholes and Improve Tax Compliance:
Combat abusive foreign tax credit transactions	—	1	2	2	3	3	11	26
Modify the active trade or business test	—	6	8	8	8	8	38	89
Impose penalties on charities that fail to enforce conservation easements	—	3	8	8	9	9	37	91
Eliminate the special exclusion from unrelated business taxable income for gain or loss on the sale or exchange of certain brownfields	—	2	14	30	43	41	130	201
Limit related party interest deductions	—	82	141	148	155	163	689	1,635
Clarify and simplify qualified tuition programs	—	4	12	13	14	20	63	222
Total close loopholes and improve tax compliance	—	98	185	209	232	244	968	2,264
Tax Administration, Unemployment Insurance, and Other:
Improve tax administration:
Implement IRS administrative reforms and initiate cost saving measures 11	—	—	—	—	—	—	—	—
Reduce the tax gap	—	259	351	311	296	308	1,525	3,560
Total improve tax administration	—	259	351	311	296	308	1,525	3,560
Strengthen financial integrity of unemployment
insurance:
Strengthen the financial integrity of the unemployment insurance system by reducing improper benefit payments and tax avoidance 12	—	—	31	30	−106	−143	−188	−2,246
Extend unemployment insurance surtax  12	—	—	1,085	1,490	1,526	1,564	5,665	710
Total strengthen integrity of unemployment insurance 12	—	—	1,116	1,520	1,420	1,421	5,477	−1,536
Other proposals:
Increase Indian gaming activity fees	—	—	5	5	5	5	20	45
Total tax administration, unemployment insurance, and other 12	—	259	1,472	1,836	1,721	1,734	7,022	2,069
Modify Energy Policy Act of 2005:
Repeal reduced recovery period for natural gas distribution lines	—	12	44	80	112	125	373	833
Modify amortization for certain geological and geophysical expenditures	—	38	140	206	169	88	641	730
Total modify Energy Policy Act of 2005	—	50	184	286	281	213	1,014	1,563
Promote Trade:
Implement free trade agreements 12	—	−236	−456	−593	−741	−832	−2,858	−8,200
Extend GSP 12	—	−412	−617	−666	−723	−786	−3,204	−3,445
Total promote trade 12	—	−648	−1,073	−1,259	−1,464	−1,618	−6,062	−11,645
Extend Expiring Provisions:
Minimum tax relief for individuals	−13,664	−20,495	—	—	—	—	−20,495	−20,495
Research & Experimentation (R&E) tax credit	−2,097	−4,601	−5,944	−6,889	−7,669	−8,340	−33,443	−86,440
Combined work opportunity/welfare-to-work tax credit	−80	−144	−86	−25	−7	−3	−265	−266
First-time homebuyer credit for DC	−1	−18	—	—	—	—	−18	−18
Authority to issue Qualified Zone Academy Bonds	−3	−8	−13	−18	−20	−20	−79	−179
Disclosure of tax return information related to terrorist activity 7	—	—	—	—	—	—	—	—
Excise tax on coal 12	—	—	—	—	—	—	—	750
Total extend expiring provisions 12	−15,845	−25,266	−6,043	−6,932	−7,696	−8,363	−54,300	−106,648
Total budget proposals, including proposals assumed in the baseline  12	−15,874	−28,631	−14,888	−51,707	−36,183	−148,653	−280,062	−1,667,039
Total budget proposals, excluding proposals assumed in the baseline  12	−15,957	−28,100	−7,152	−14,684	−22,587	−28,939	−101,462	−314,006

¹ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $45 million for 2011 and $51,809 million for 2007–2016.

² Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$371 million for 2011 and $7,346 million for 2007–2016.

³ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $91 million for 2007, $178 million for 2008, $253 million for 2009, $310 million for 2010, $352 million for 2011, $1,184 million for 2007–2011 and $3,500 million for 2007–2016.

⁴ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $244 million for 2007, $315 million for 2008, $319 million for 2009, $303 million for 2010, $305 million for 2011, $1,486 million for 2007–2011 and $3,200 million for 2007–2016.

⁵ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $381 million for 2007, $747 million for 2008, $1,095 million for 2009, $1,249 million for 2010, $1,343 million for 2011, $4,815 million for 2007–2011 and $12,939 million for 2007–2016.

⁶ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is $4 million for 2007, $10 million for 2008, $12 million for 2009, $14 million for 2010, $15 million for 2011, $55 million for 2007–2011 and $139 million for 2007–2016.

⁷ No net budgetary impact.

⁸ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$170 million for 2008, -$196 million for 2009, -$250 million for 2010,
-$234 million for 2011, -$850 million for 2007–2011 and -$2,224 million for 2007–2016.

⁹ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$188 million for 2007, $123 million for 2008, $102 million for 2009, $96 million for 2010, $95 million for 2011, $228 million for 2007–2011 and $687 million for 2007–2016.

¹⁰ Affects both receipts and outlays. Only the receipt effect is shown here. The outlay effect is -$332 million for 2008, -$342 million for 2009, -$347 million for 2010,
-$357 million for 2011, -$1,378 million for 2007–2011 and -$3,263 million for 2007–2016.

¹¹ Outlays from this proposal will be reflected in the Financial Management Service's budget.

¹² Net of income offsets.

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

Source	2005 Actual	Estimate
		2006	2007	2008	2009	2010	2011
Individual income taxes	927.2	997.6	1,096.4	1,208.5	1,268.4	1,370.1	1,466.9
Corporation income taxes	278.3	277.1	260.6	268.5	277.1	282.0	292.0
Social insurance and retirement receipts	794.1	841.1	884.1	932.1	980.7	1,037.4	1,096.7
(On-budget)	(216.6)	(231.1)	(241.8)	(253.0)	(264.5)	(278.9)	(295.1)
(Off-budget)	(577.5)	(610.0)	(642.3)	(679.1)	(716.2)	(758.5)	(801.6)
Excise taxes	73.1	73.5	74.6	75.9	77.5	78.9	83.1
Estate and gift taxes	24.8	27.5	23.7	24.4	26.0	20.1	1.6
Customs duties	23.4	25.9	28.1	31.4	31.7	34.0	36.2
Miscellaneous receipts	33.0	42.8	48.4	49.4	52.7	55.7	58.4
Total receipts	2,153.9	2,285.5	2,415.9	2,590.3	2,714.2	2,878.2	3,034.9
(On-budget)	(1,576.4)	(1,675.5)	(1,773.5)	(1,911.1)	(1,998.0)	(2,119.7)	(2,233.3)
(Off-budget)	(577.5)	(610.0)	(642.3)	(679.1)	(716.2)	(758.5)	(801.6)

Table S–9. Economic Assumptions
(Fiscal years)

	2005	2006	2007	2008	2009	2010	2011
Gross Domestic Product (GDP):
Nominal level, in billions of dollars	12,290	13,030	13,761	14,521	15,296	16,102	16,955
Percent change 1	6.5	6.0	5.6	5.5	5.3	5.3	5.3
Real GDP 1	3.6	3.4	3.3	3.3	3.2	3.1	3.1
GDP price index 1	2.8	2.5	2.2	2.2	2.1	2.1	2.1
Consumer Price Index 1	3.3	3.3	2.4	2.4	2.4	2.4	2.4
Unemployment rate 2	5.2	5.0	5.0	5.0	5.0	5.0	5.0
Interest rates: 2
91-day Treasury bill	2.7	4.1	4.2	4.2	4.3	4.3	4.3
10-year Treasury note	4.2	4.9	5.3	5.5	5.6	5.6	5.6

¹ Year-over-year percent change.

² Annual averages, percent.

Table S–10. Comparison of Economic Assumptions
(Calendar years)

	Projections						Average 2006–2011
	2006	2007	2008	2009	2010	2011
GDP (billions of current dollars):
2007 Budget	13,210	13,949	14,713	15,493	16,310	17,177
CBO January	13,263	13,960	14,696	15,455	16,208	16,954
Blue Chip Consensus January 1	13,237	13,939	14,703	15,505	16,372	17,280
Real GDP (chain-weighted): 2
2007 Budget	3.4	3.3	3.3	3.1	3.1	3.1	3.2
CBO January	3.6	3.4	3.4	3.3	3.0	2.8	3.3
Blue Chip Consensus January 1	3.4	3.1	3.2	3.1	3.3	3.2	3.2
Chain-weighted GDP Price Index: 2
2007 Budget	2.4	2.2	2.1	2.1	2.1	2.1	2.2
CBO January	2.4	1.8	1.8	1.8	1.8	1.8	1.9
Blue Chip Consensus January 1	2.4	2.1	2.3	2.2	2.3	2.2	2.3
Consumer Price Index (all-urban): 2
2007 Budget	3.0	2.4	2.4	2.4	2.4	2.5	2.5
CBO January	2.8	2.1	2.2	2.2	2.2	2.2	2.3
Blue Chip Consensus January 1	2.9	2.4	2.4	2.5	2.4	2.5	2.5
Unemployment rate: 3
2007 Budget	5.0	5.0	5.0	5.0	5.0	5.0	5.0
CBO January	5.0	5.0	5.1	5.2	5.2	5.2	5.1
Blue Chip Consensus January 1	4.9	4.9	4.9	4.9	5.0	4.9	4.9
Interest rates: 3
91-day Treasury bills:
2007 Budget	4.2	4.2	4.3	4.3	4.3	4.3	4.3
CBO January	4.5	4.5	4.4	4.4	4.4	4.4	4.4
Blue Chip Consensus January 1	4.5	4.5	4.4	4.3	4.4	4.4	4.4
10-year Treasury notes:
2007 Budget	5.0	5.3	5.5	5.6	5.6	5.6	5.4
CBO January	5.1	5.2	5.2	5.2	5.2	5.2	5.2
Blue Chip Consensus January 1	4.9	5.0	5.3	5.3	5.4	5.4	5.2

Sources: Congressional Budget Office; Blue Chip Economic Indicators, Aspen Publishers, Inc.

¹ January 2006 Blue Chip Consensus forecast for 2006 and 2007; Blue Chip October 2005 long-run extension for 2008—2011.

² Year-over-year percent changes.

³ Annual averages, percent.

Table S–11. Budget Summary by Category
(In billions of dollars)

	2005	2006	2007	2008	2009	2010	2011
Outlays:
Discretionary:
DOD military	473	510	503	471	471	484	499
Homeland security	30	32	34	35	36	38	40
Other	465	490	492	473	468	461	455
Total,Discretionary	968	1,032	1,029	980	975	983	994
Mandatory:
Social Security:
Current program	519	550	581	612	645	683	722
Personal accounts	—	—	—	—	—	24	57
Medicare	294	338	387	399	421	447	489
Medicaid and SCHIP	187	198	205	218	233	250	270
Other	320	370	320	332	355	367	386
Total, Mandatory	1,320	1,457	1,494	1,562	1,655	1,771	1,924
Net Interest	184	220	247	272	291	307	322
Total Outlays	2,472	2,709	2,770	2,814	2,922	3,061	3,240
Revenues	2,154	2,285	2,416	2,590	2,714	2,878	3,035
Deficit	−318	−423	−354	−223	−208	−183	−205

Table S–12. Current Services Baseline Summary by Category
(In billions of dollars)

	2005	2006	2007	2008	2009	2010	2011
Outlays:
Discretionary:
DOD military	473	480	440	438	445	456	472
Homeland security	30	32	34	35	35	36	38
Other	465	486	488	484	493	498	507
Total, Discretionary	968	998	962	957	973	990	1,017
Mandatory:
Social Security	519	550	581	612	645	683	723
Medicare	294	338	390	405	429	457	500
Medicaid and SCHIP	187	198	205	219	234	251	270
Other	320	365	319	340	359	371	390
Total, Mandatory	1,320	1,451	1,495	1,575	1,668	1,762	1,883
Net Interest	184	219	244	266	284	298	310
Total Outlays	2,472	2,669	2,701	2,798	2,925	3,050	3,210
Revenues	2,154	2,301	2,444	2,597	2,729	2,901	3,064
Deficit	−318	−367	−257	−201	−196	−149	−146
On-budget deficit	−494	−549	−449	−416	−428	−402	−420
Off-budget surplus	175	182	192	216	233	252	274

Table S–13. Federal Government Financing and Debt
(In billions of dollars)

	Actual 2005	Estimate
		2006	2007	2008	2009	2010	2011
Financing:
Unified budget deficit (−)	−318	−423	−354	−223	−208	−183	−205
Financing other than the change in debt held by the public:
Net purchases (−) of non-Federal securities by the National Railroad Retirement Investment Trust	−2	*	*	*	*	*	1
Changes in: 1
Treasury operating cash balance	1	—	—	—	—	—	—
Checks outstanding, etc. 2	17	—	—	—	—	—	—
Seigniorage on coins	1	1	1	1	1	1	1
Less: Net financing disbursements:
Direct loan financing accounts	−5	−16	−18	−19	−19	−19	−21
Guaranteed loan financing accounts	11	12	−1	−0	−0	−0	−1
Total, financing other than the change in debt held by the public	22	−4	−18	−19	−18	−19	−20
Total, requirement to borrow from the public	−297	−427	−373	−242	−226	−201	−225
Change in debt held by the public	297	427	373	242	226	201	225
Changes in Debt Subject to Limitation:
Change in debt held by the public	297	427	373	242	226	201	225
Change in debt held by Government accounts	254	279	311	328	346	344	329
Change in other factors	−13	*	1	1	3	2	3
Total, change in debt subject to statutory limitation	538	707	685	570	574	548	557
Debt Subject to Statutory Limitation, End of Year:
Debt issued by Treasury	7,879	8,586	9,270	9,841	10,413	10,959	11,514
Adjustment for discount, premium, and coverage 3	−8	−8	−8	−8	−6	−4	−3
Total, debt subject to statutory limitation 4	7,871	8,578	9,262	9,833	10,407	10,955	11,512
Debt Outstanding, End of Year:
Gross Federal debt: 5
Debt issued by Treasury	7,879	8,586	9,270	9,841	10,413	10,959	11,514
Debt issued by other agencies	26	26	25	25	24	23	23
Total, gross Federal debt	7,905	8,611	9,295	9,865	10,437	10,983	11,537
Held by:
Debt held by Government accounts	3,313	3,593	3,904	4,232	4,578	4,922	5,251
Debt held by the public 6	4,592	5,019	5,391	5,633	5,859	6,061	6,286
As a percent of GDP	37.4%	38.5%	39.2%	38.8%	38.3%	37.6%	37.1%

* $500 million or less.

¹ A decrease in the Treasury operating cash balance (which is an asset) 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 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), other asset accounts, and profit on sale of gold.

³ 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.

⁴ The statutory debt limit is $8,184 billion, enacted on November 19, 2004.

⁵ 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).

⁶ At the end of 2005, the Federal Reserve Banks held $736.4 billion of Federal securities and the rest of the public held $3,855.9 billion. Debt held by the Federal Reserve Banks is not estimated for future years.