“Each year, after the President releases the Administration’s budget request, the Congressional Budget Office analyzes the proposals in that request. Using its own economic projections and estimating procedures, CBO projects what the federal budget would look like over the next 10 years if the President’s proposals were adopted. CBO provides that information in two reports. In general, the first report examines the proposals’ direct effects on the budget; the second, which takes more time to prepare, shows the effects that the proposals would have on the economy and how those macroeconomic effects would, in turn, feed back into the budget. CBO’s first report typically does not incorporate any of that macroeconomic feedback. This year, however, a proposal related to immigration would affect the economy more directly than Presidential proposals usually would, chiefly by increasing the size of the labor force, and that increase would result in significantly higher receipts from income and payroll taxes. Therefore, the budgetary projections in this year’s version of the first report, which was published in March, included some feedback resulting from the immigration proposal. This second report describes the effects of the President’s budget request as a whole on the economy, including the effects of the immigration proposal that were incorporated into the first report. It then describes how the resulting macroeconomic feedback, combined with the proposals’ direct effects on the budget, would affect the federal government’s budget deficits…”