Katrina Relief and Federal Spending and Deficits
End Notes
[1] All projections cited here start with the baseline in the Congressional Budget Office’s August 2005 report, The Budget and Economic Outlook: An Update. That baseline is then adjusted to include the effects of the following policies, as shown in Table 1-6 of CBO’s report: (1) extending the expiring tax cuts (except for the provision dealing with repatriation of profits held abroad by American corporations); (2) continuation of relief from the Alternative Minimum Tax; (3)and a phase-down of activities in Iraq and Afghanistan. The projections of the cost of Katrina relief reflect CBPP’s estimate of outlays from appropriations of $150 billion or $200 billion for Katrina relief, based on CBO’s estimate of outlays from the $62 billion in Katrina relief that has already been appropriated.
[2] Steve Bowman, “Iraq: U.S. Military Operations,” Congressional Research Service, updated July 5, 2005.