CBO Releases its Analysis of the Bush Administration’s Budget Proposal
Dear All,
The CBO released its first report of the initial proposal by Pres. Bush and its computerized version by Clyburn. The main conclusions are that the CBO has not heard the reasoning for changing the baseline, and the stimulus and the two permanent tax cuts have been omitted:
Adding in the 350 billion stimulus and these two tax cuts, and using the original baseline, the CBO projects a deficit of $123.037 billion dollars in 2012.
The questions about the baseline changes still apply, as well as a seconding of the request to the administration to release a detailed budget in the software format, as well as provide further explanations
Thank you.
Peter R. Orszag (Ryan Chan)
Director, CBO
To view proposal, click here.
Budget Times 
What is in our $350BN stimulus package?
Tax rebates of $1000 to individuals ($2000 for couples) which will probably cost $280BN based on cost of the bill earlier in 2008.
Increased tax deductions on mortgage payments (exact $ level to be determined, backdated from previous tax year, to be paid out/credited as soon as feasible) estimated to cost approx. $70BN to help homeowners keep current on their mortgage payments.
Hank Paulson (Yan Phoa)
Secretary of Treasury