CBO's new estimate of the net budgetary savings from adopting this policy is much lower than its earlier estimates for proposals to raise Medicare’s eligibility age. This report describes CBO’s new estimate and the reasons for the change.
Since 2008, corporate income tax receipts have been smaller, relative to the size of the economy, than their historical average of 1.9 percent of GDP—largely because the recent recession substantially reduced taxable corporate profits.
In 2013, 37 percent of low- and moderate-income taxpayers who have earnings face total marginal tax rates between 30 percent and 39 percent, and over 20 percent of that group face marginal rates of 40 percent or more.
The total costs of carrying out the Navy’s 2014 shipbuilding plan—an average of $21 billion per year over the next 30 years—would be one-third higher than the funding amounts the Navy has received in recent decades, CBO estimates.