November 17, 2003

Honorable Charles W. Stenholm
U.S. House of Representatives
Washington, DC 20515

Dear Congressman:

As requested in your letter of October 14, 2003, the Congressional Budget Office has estimated the effect on its baseline projections of the policy alternatives that you specified. This letter supersedes our response dated November 6 and corrects the debt service calculation and associated totals from that letter. The attached table shows CBO's estimate of the total budget deficit and debt held by the public incorporating the following adjustments to its August 2003 baseline:

• Extend all provisions contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003;



• Assume that the exemption amount for the alternative minimum tax is extended at its level for 2004 and indexed for inflation;



• Assume enactment of Medicare reform (including a prescription drug benefit) at the level assumed in the budget resolution;



• Adopt the levels of discretionary budget authority proposed in the President's budget for 2004 through 2008 and the extrapolation through 2013 as presented in CBO's Analysis of the President's Budgetary Proposals for Fiscal Year 2004 (March 2003). Furthermore, include estimated spending from supplemental appropriations enacted in April and November 2003, and additional spending through 2013 for Iraq, Afghanistan, and Operation Noble Eagle.⁽¹⁾

If you would like further details on the information provided in this letter, we would be pleased to provide them. The staff contact is Jeff Holland.

Sincerely,

Douglas Holtz-Eakin
Director
 

Attachment
 

cc:	Honorable Jim Nussle Chairman House Committee on the Budget
	Honorable John M. Spratt Jr. Ranking Member
	Honorable Don Nickles Chairman Senate Committee on the Budget
	Honorable Kent Conrad Ranking Member

Identical letters sent to Honorable Dennis Moore and Honorable Mike Thompson.