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Interest Rates
- US: H15 -0.57 2011-10-06 FRB Market yield on U.S. Treasury securities at 5-year constant maturity, quoted on investment basis, inflation-indexed
- US: H15 0.07 2011-10-06 FRB Federal funds effective rate
- US: H15 0.09 2011-10-06 FRB 30-Day AA Nonfinancial Commercial Paper Interest Rate
- US: H15 ND 2011-10-06 FRB Rate paid by fixed-rate payer on an interest rate swap with maturity of three year.
- US: H15 0.12 2011-10-06 FRB 60-Day AA Nonfinancial Commercial Paper Interest Rate
Trade (FTC)
- FTC Requires Sale of Generic Cancer Pain Drug and Muscle Relaxant as Conditions of Teva’s $6.8 Billion Acquisition of CephalonPar Pharmaceuticals Will Acquire Drug Assets, Enter Agreement To Make Generic Provigil […]
- FTC Requires Sale of Generic Cancer Pain Drug and Muscle Relaxant as Conditions of Teva’s $6.8 Billion Acquisition of Cephalon
Commerce News
- Opening Session Remarks of Assistant Secretary Strickling at the Internet Governance ForumOpening Session Remarks by Lawrence E. Strickling Assistant Secretary of Commerce for Communications and Information Internet Governance Forum Nairobi, Kenya September 27, 2011 -As prepared for delivery- Thank you, Alice, and I want to especially thank the Kenyan government for hosting this important conference. On behalf of the United States Government, I h […]
- Opening Session Remarks of Assistant Secretary Strickling at the Internet Governance Forum
Small Business News
- The Small Business Advocateread more […]
- The Small Business Advocate
Monetary Policy
Cost Estimates
- S. 1660, American Jobs Act of 2011Cost estimate for the bill as introduced in the Senate on October 5, 2011 […]
- S. 1549, American Jobs Act of 2011Cost estimate for the bill as introduced on September 13, 2011 […]
- S. 50, Commercial Seafood Consumer Protection ActCost estimate for the bill as ordered reported by the Senate Committee on Commerce, Science, and Transportation on June 8, 2011 […]
- S. 1660, American Jobs Act of 2011
Banking
- David Nebhut Named Deputy Comptroller for Economic and Policy AnalysisThe Office of the Comptroller of the Currency (OCC) announced recently that David Nebhut has been appointed Deputy Comptroller for Economic and Policy Analysis effective September 25, 2011. […]
- David Nebhut Named Deputy Comptroller for Economic and Policy Analysis
The Cost Of Jobs
CBO released a cost estimate for S. 1549, the American Jobs Act of 2011, as introduced by Senator Majority Leader Harry Reid on September 13, 2011. That legislation corresponds to the plan put forth by President Obama. We also released a cost estimate for S. 1660, the American Jobs Act of 2011, as introduced by Senator Reid on October 5, 2011. Senator Reid’s alternative bill, S. 1660, includes the same tax cuts and spending increases as S. 1549, but it offsets the budgetary impact of those provisions in a different way, as described below. Those estimates represent joint work by CBO and the staff of the Joint Committee on Taxation (JCT).
CBO anticipates that enacting either bill could have a noticeable impact on economic growth and employment in the next few years. Following long-standing Congressional budget procedures, however, the estimates released today do not address the potential budgetary effects of such changes in the economic outlook.
What Is The Impact of the Bills on the Federal Deficit?
CBO estimates that enacting the President’s plan would increase the budget deficit by $288 billion in 2012 and decrease deficits by $3 billion over the 2012-2021 period. That estimated deficit reduction of $3 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts and $450 billion in additional tax revenue from the offsets specified in the bill.
CBO estimates that enacting Senator Reid’s alternative bill would increase the budget deficit by $285 billion in 2012 and decrease deficits by $6 billion over the 2012-2021 period. That estimated deficit reduction of $6 billion over the coming decade is the net effect of $447 billion in additional spending and tax cuts and $453 billion in additional tax revenue from the offset specified in the bill.
What Tax Cuts Would Be Provided Under the Bills?
Both bills would reduce payroll taxes for employees and employers. Both bills would also provide businesses with accelerated deductions for the costs of certain investments. CBO and JCT estimate that these provisions in both bills would reduce revenues by an estimated $271 billion over the 2012-2021 period.
What Additional Spending Would Be Provided Under the Bills?
CBO estimates that both bills would increase spending by a total of $175 billion over the 2012-2021 period. More than 80 percent of that total spending would occur from 2012 through 2014. Specific amounts of funding include:
How Would the Tax Cuts and Additional Spending be Paid For?
S. 1549, the President’s plan, includes a number of revenue-increasing provisions, or offsets, that would begin in calendar year 2013. CBO and JCT estimate that those provisions would increase revenues by $450 billion over the 2012-2021 period. Specifically, the bill would:
The tax offsets in S. 1549 would not go into effect if legislation emanating from the Joint Select Committee on Deficit Reduction is enacted that exceeds $1.65 trillion in budgetary savings. The bills also would amend the Budget Control Act of 2011 to increase the target for 10-year savings from legislation proposed by the joint select committee from at least $1.5 trillion to at least $1.95 trillion.
S. 1660, Senator Reid’s alternative bill, replaces the offset provisions in S. 1549 with a surtax of 5.6 percent, starting in 2013, on a taxpayer’s modified adjusted gross income in excess of $1 million (or $500,000 in the case of a married individual filing a separate return), indexed for inflation. JCT estimates that this surtax would increase revenues by $453 billion over the 2012-2021 period.