The document summarizes key items omitted from the Bush budget that would significantly increase long-term costs and deficits. It shows that the budget only covers 5 years and does not include the full 10-year costs of making Bush's tax cuts permanent, ongoing military operations beyond 2005, reforming the Alternative Minimum Tax, or transition costs for privatizing Social Security. Factoring in these omitted costs would dramatically increase budget deficits over the next 10 years.

1. What’s Left Out of Bush Budget
Y Full 10-Year Numbers
Y Funding for Ongoing Iraq Costs Beyond
FY 2005
Y AMT Reform
Y Social Security Privatization Transition
Costs
Y Spending Policy Details Beyond FY 2006
(Discretionary)

2. Cost of Bush Tax Cuts Explodes
Outside Five-Year Budget Window
($ in billions)
$300
$200
$1.6 Trillion
Ten-year cost of
Bush tax cuts
FY 2006-2015
Bush Budget only
$100
covers first 5 years
$0
2005 2007 2009 2011 2013 2015
Source: OMB, Bush FY 2006 Budget
Note: Includes debt service. Feb 7

3. Cost of AMT Reform Explodes
Outside Five-Year Budget Window
($ in billions)
$160
$140
$120
$100
Bush FY 2006 Budget
$80
includes no funding for
AMT Reform
$774 billion ten-year
$60
cost to reform AMT
FY 2006-2015
$40
$20
$0
2005 2007 2009 2011 2013 2015
Source: CBO
Note: Includes interest cost, assumes tax cuts made permanent.

4. Long-Term Costs Underfunded for
Ongoing Operations in Iraq, Afghanistan,
and Continuing War on Terror
($ in billions)
$383 B
$400
$300
Bush Budget includes
$81 billion for ongoing
military operations in
$200 Iraq, Afghanistan, and
war on terrorism, and
other items.
$81 B
$100
$0 Amount in Bush Budget for CBO Estimate of Cost of
Ongoing Military Operations in Ongoing Military Operations
FY 2005 FY 2006-2015
Source: OMB, CBO

5. Bush Budget Provides No
Funding for President’s
Social Security Plan
($ in trillions)
$5
$4.5 T
$4
$3
$2
$754 B
$1
$0
$0
Phased-In Cost of 20-Year Cost of
Amount Provided in
Bush Budget for President’s Social President’s Social
President’s Social Security Plan During Security Plan After Full
Security Plan First Ten Years Implementation
FY 2006-2015 FY 2009-2028
Source: OMB, CBPP

6. Bush Budget Hides
Worsening Budget Outlook
($ in billions)
$236 B
$250
$50
Bush Deficits
Bush Administration
Over Ten
Deficit Claim
Years with
$-150
Omitted Costs
$-350
-$528 B
$-550
2000 20042005 2006 2010 2015
1998 2002 2008 2012 2014
2000 2010
Source: OMB, CBPP
Note: Deficit under Bush FY 2006 Budget extended over ten
years w ith tax cuts m ade perm anent, AMT reform , ongoing
w ar costs, and w ith President's Social Security plan.

7. Bush Budget Spends Every Penny of
$2.6 Trillion Social Security Surplus
on Tax Cuts and Other Things
FY 2006-2015
FY 2006-2015
($ in billions)
$304 B
$300
$185 B
$200
$2.6 Trillion Ten-Year
Social Security Surplus
$100
$0
2006 2009 2012 2015
Source: CBO

8. Publicly-Held Debt
Under Bush Budget with Tax Cuts Made Permanent,
AMT Reform, Ongoing War Costs, and with Social
Security Privatization Transition Costs Borrowed
($ in trillions)
$9.1 trillion
in 2015
$8
$6
$3.3 trillion
in 2001
$4
$2
2001 2005 2010 2015
Source: OMB
Note: Bush FY 2006 Budget extended over ten years with tax cuts made permanent, AMT
reform, ongoing war costs, and with Social Security privatization transition costs borrowed.
privatization

9. Top Ten Countries Holding Our
National Debt
Japan $715 B
China $191 B
United Kingdom $152 B
“Caribbean Banking Centers” $76 B
South Korea $69 B
OPEC $61 B
Taiwan $58 B
Germany $56 B
Switzerland $51 B
Hong Kong $50 B
Source: Department of Treasury
Note: As of November 2004