An Analysis of the President's Budgetary Proposals for Fiscal Year 2005

Abstract : This Congressional Budget Office (CBO) analysis of the President's budgetary proposals for fiscal year 2005 was prepared at the request of the Senate Committee on Appropriations. The report updates CBO's preliminary analysis, which was released on February 27, 2004. That analysis incorporated estimates from the Joint Committee on Taxation that subsequently have been slightly revised. Those updated revenue estimates as well as other minor corrections are reflected in this report. The analysis was produced by the staffs of CBO's Budget Analysis, Macroeconomic Analysis, and Tax Analysis Divisions under the supervision of Robert Sunshine, Robert Dennis, and Thomas Woodward, respectively. The baseline revenue estimates and the estimates of certain revenue proposals were prepared by CBO; most of the estimates of the President's revenue proposals were prepared by the Joint Committee on Taxation. Chapters 1 and 2 are as follows: "CBO's Estimate of the President's Budget for Fiscal Year 2005 and "The Economy Under the President's Budget and Under CBO's Baseline Policy Assumptions. Appendixes A and B are as follows: "The Potential Economic Effects of Selected Proposals in the President's 2005 Budget" and "The Models Used to Analyze the Macroeconomic Effects of the President's Budget Over the Next Decade."