Why Does CBO Prepare Cost Estimates?

Why Does the Congressional Budget Office Prepare Cost Estimates

By law, the Congressional Budget Office is required to produce a cost estimate for every bill reported by a congressional committee. Each cost estimate of pending legislation assesses (1) the potential impact on spending subject to (also known as ), (2) any impact on (also known as direct spending), and (3) any impact on federal revenues (incorporating estimates by the Joint Committee on Taxation for legislation that would change the federal tax code). Because CBO's cost estimates are used to determine whether various budget proposals are consistent with the , they've become an integral part of the legislative process. SOURCE: See also: ;

National Debt Glossary

Looks up the key terms for understanding America's financial crisis

Frequently Asked Questions National Debt

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