U.S.A. had large debts in 1995 and Mr. Clinton, President of U.S.A., planned to reduce the debts by introducing Seven Years Plan from 1995-2002. The Government increased the tax-rate from 28% to 36%, reduced the doctors fees and other number of similar steps were taken. The plan was executed so well that there was a surplus of 122 Billion Dollars in the 1999. Christopher Cox, Chairman, House Policy Committee had predicted. "The new discipline is already working: even with this more conservative accounting, the Congressional Budget Office is predicting the largest-ever surplus for the fiscal year ending September 30, 2000."

The assessee is supplied with Statements of Revenues and expenses of every year, which gives in details: amount of Rs. which the Government collected during the fiscal year and also details of expenses which the Government spent on different heads. The annual report of the United States Government 1999 is enclosed to point out how detailed information is given in respect of the Revenues-collected, Expenses-incurred with great respect showing to the assessees. The Reports ends with the following remarks :

"Many other important facts can be gleaned from this year's annual reports each year since 1989, I have provided this summary of the Federal Government Financial-operations because as a taxpayer you are entitled to it. I hope you find it useful".

The copy of Annual Report on the United States Government 1999 given to the assessee is enclosed herewith.

NATIONAL SYMBOLOF THE
UNITED STATES GOVERNMENT

ANNUAL REPORTON THE
UNITED STATES GOVERNMENT1999

SEAL OF THE UNITED STATES GOVERNMENT
(HOUSE OF REPRESENTATIVES US.)
HOUSE POLICY COMMITTEE.
CHRISTOPHER COX, CHAIRMAN.

Photograph of the CONGRESS OF THE UNITED STATES
President of U.S.A. HOUSE OF REPRESENTATIVES
Bill Clinton, 1999 WASHINGTON, DC - 20515-0515.

Dear Taxpayer,

In 1999, the federal government turned a corner. For the first time since 1961, the cost of interest on the national debt declined. At the same time, last year's $122 billion surplus way by far the largest in American history. But more progress toward fiscal health and spending discipline is needed.

The Congressional leadership has determined to balance the budget this year - for the first time ever - without counting Social Security payroll taxes. Recently, the Congress voted to do this, creating a Social Security "lockbox" to set aside every penny of Social Security taxes. "The new discipline is already working: even with this more conservative accounting, the Congressional Budget Office is predicting the largest-ever surplus for the fiscal year ending September 30, 2000."

Many other important facts can be gleaned from this year's Annual Report. Each year since 1989, I have provided this summary of the federal government's financial operations because, as a taxpayer, you are entitled to it. I hope you find it useful.

Sincerely,
Sd./-
Christopher Cox,
Chairman,
House Policy Committee.

CONGRESS OF THE UNITED STATES Sd/-
HOUSE OF REPRESENTATIVES Christopher Cox
WASHINGTON, D.C.-20515. POSTAL CUSTOMER-local
Seal of the House of Representatives, U.S. Fourty Seventh Congressional
District : California.

ANNUAL REPORT TO TAXPAYERS

Statement of Revenues and Expenses - U.S.A.

* Less than 1%

Notes

1. The U.S. Government fiscal year begins on October 1 and ends on September 30.
2. Includes direct taxes and payroll taxes from individuals and employers for disability insurance, Social Security and other federal retirement programs, hospital insurance taxes and unemployment insurance taxes.
3. Represents receipts of federal departments and agencies netted from gross outlays in Treasury reports (such as proprietary receipts from the public, receipts from off-budget federal entitles, and intrabudgetary transactions) and total undistributed offsetting receipts (including interest received by federal trust funds and rents and royalties on Outer Continental Shelf Lands).
4. Includes arts, education, labor, health and human services, low income and public housing, WIC, welfare block grants, food stamps and other agricultural programs, and federal retirement programs (including Social Security).
5. Includes SBA, GSA, DOE, GAO, Commerce, Corporation for Public Broadcasting, District of Columbia, EEOC, Export-Import Bank, FCC, FEMA, FTC, Government Printing Office, Justice, Library or Congress, National Achieves and records Administration, National Credit Union Administration, savings & loan and bank insurance, independent agencies.
6. Includes outlays for Department of State, Peace Corps, OPIC, AID, foreign military sales, and other international assistance program.
7. Includes EPA, National Park Service, Fish and Wildlife Service, Bureau of land Management Forest Service, National Oceanic and Atmospheric Administration, and major environmental programs of federal agencies.
8. For fiscal years 1991 and beyond, the excess of Social Security taxes over outlays for Social Security is excluded by law from deficit or surplus calculations. The Clinton administration, however, has elected to include the Social Security Trust Fund in their deficit and surplus calculations, which has the effect of increasing the reported surplus by $86 billion in 1998 and by $124.7 billion in 1999.
   

Interest on National Debt, 1995-1999

During 1999, interest payments on the national debt declined for the first time since 1961. During the last four decades, interest, cost had risen steadily from 7% of total expenses in 1960 to 18% in 1998. In 1999, interest as a share of total expenses decreased by 6%, representing a saving of $10 billion.

Declining interest costs also contributed to the federal government's first budget since 1960. As a result of this surplus, the amount of publicly-held debt will actually decline in 2000, the first time this has happened in three decades.

Effect of Changes in Capital Gains Tax Rates, 1994-1999