scb_021984

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1984 / VOLUME 4 NUMBER

^ Tables 3

^-H>v = "-V\ ^ ^ ^ $'

V>-\ -s^/s/ ^ 4^ ^ v: '' "V'" :: '"i^^ :;r;, . ;;:;v '/"?;;Ifce S^^etar^r af Gonajiseree^ has delenaifted tl4t the publication of this periodical is necessary in the transaction ol the piihtie business laired by ja^ of this Apartment. Use of ftmds lor print^gtMsperio

the BUSINESS SITUATION

IvEVISED (45-day) estimates showthat real GNP increased 5 percent atan annual rate in the fourth quarterof 1983.l Preliminary (15-day) esti-mates had shown a 4V2-percent in-crease. Inflation, as measured by theincrease in the GNP fixed-weightedprice index, was revised down from4 x/2 percent to 4 percent.

The $1V2 billion upward revision inreal GNP resulted from large, but off-setting, revisions in some of the majorcomponents (table 1). Net exportswere revised up $4 billion, mainly dueto higher estimates of merchandiseexports and lower estimates of mer-chandise imports. The upward revi-sion of $2J/2 billion in nonresidentialfixed investment was in producers'durable equipmentabout half inmotor vehicles. Residential invest-ment was revised up $1 billion. Thelargest downward revision$31/2 bil-lionwas in change in business in-ventories. Manufacturing inventories,both durable and nondurable, ac-counted for about three-fifths of therevision; wholesale inventories, pri-marily nondurable, accounted for theremainder. Personal consumption ex-penditures were revised down $2 bil-lion. In particular, estimates forautos, food, and electricity and natu-ral gas were lower. Revisions in gov-ernment purchases were quite small.

For the most part, the revisions infourth-quarter GNP do not alter thepicture of economic activity describedin the January "Business Situation."The 5-percent increase in real GNP in

the fourth quarter was smaller thanthe very strong increases in the twopreceding quarters. The slowdownwas in inventory investment. In thethird quarter, a swing in inventoriesfrom liquidation in the second quarterto accumulation had boosted the

change in GNP. In the fourth quarter,inventories accumulated at the samerate as in the third, and, thus, did notaffect the change in GNP. The moder-ate increase in inventories in thefourth quarter, coupled with a strongincrease in final sales, led to a contin-

Table 1.Revisions in Selected Component Series of the NIPA's, Fourth Quarter of 1983

GNP

Personal consumption expendituresNonresidential fixed investmentResidential investmentChange in business inventoriesNet exportsGovernment purchases

National income

Compensation of employeesCorporate profits with inventory valuation and capital consumption

adj ustmentsOther

Personal income

GNP

Personal consumption expendituresNonresidential fixed investmentResidential investment.Change in business inventoriesNet exportsGovernment purchases

GNP implicit price deflatorGNP fixed-weighted price indexGNP chain price index

Seasonally adjusted at annualrates

15-dayestimate

45-dayestimate Revision

Billions of current dollars

3,432.0

2,233.1371.2140.8

17.7-32.6701.7

2,056.0

446.3

2,834.2

3,437.3

2,227.0376.2141.510.5

-18.7700.9

2,056.3

448.6

2,835.3

5.3

-6.15.0

.7-7.213.9-.8

.3

1.7

1.1

Billions of constant (1972)dollars

1,570.5

1,032.2178.956.17.52.5

293.2

1,571.9

1,030.2181.357.13.96.3

293.2

1.4

-2.02.41.0

-3.63.80

Index numbers, 1972-100

218.53228.0

218.67227.7

.14-.3

Percent changefrom preceding

quarter at annualrates

15-dayestimate

8.6

9.925.1

-1.8

2.0

9.1

19.6

10.9

4.5

6.522.3

-5.2

-2.7"

3.94.54.6

45-dayestimate

9.2

8.731.9

.2

1.5

9.2

21.4

11.1

4.9

5.729.0

1.8

-2.1

4.24.14.4

1. Quarterly estimates in the national income andproduct accounts are expressed at seasonally adjustedannual rates. Quarterly percent changes in them areexpressed at annual rates.

1. Not at annual rates.NOTE.For the fourth quarter of 1983, the following revised or additional major source data became available: For personal

consumption expenditures, revised retail sales for November and December; for nonresidential fixed investment, manufacturers'shipments of equipment for November (revised) and December, construction put in place for November (revised) and December,and a partial tabulation of business expenditures for plant and equipment for the quarter; for residential investment, constructionput in place for November (revised) and December; for change in business inventories, book values for manufacturing and tradefor November (revised) and December; for net exports of goods and services, merchandise trade for November (revised) andDecember; for government purchases of goods and services, Federal unified budget outlays for December, and State and localconstruction put in place for November (revised) and December; for wages and salaries, revised employment, average hourlyearnings, and average weekly hours for November and December; for GNP prices, the Consumer Price Index and the ProducerPrice Index for December, unit value indexes and export and import price indexes for December, and residential housing pricesfor the quarter.

1


SURVEY OF CURRENT BUSINESS February 1984

ued decline in the aggregate inven-tory-sales ratios.

Final sales were up 5 percent inboth the third and fourth quarters.Among the components of final sales,personal consumption expendituresincreased sharply in the fourth quar-ter, following a moderate increase inthe third. About one-half of thefourth-quarter increase was accounted

for by spending on durables, particu-larly on new cars and trucks and onfurniture and equipment. A speedupin nonresidential fixed investment inthe fourth quarter was in its equip-ment component. Residential invest-ment changed little in the fourthquarter, following several quarters ofstrong increases. Both single-familyand multifamily construction contrib-

uted to the slowdown. Net exportsregistered a much sharper declinethan in the third quarter. Importswere up more than in the third quar-ter, and exports were up less. Govern-ment purchases declined after an in-crease; a decrease in Federal nonde-fense purchases was due to the oper-ations of the Commodity Credit Cor-poration.


February 1984 SURVEY OF CURRENT BUSINESS

Selected National Income and Product Accounts Tables

New estimates in this issue: Fourth Quarter and annual 1983, revised.The abbreviations used in the tables are: CCAdj

IVACapital consumption adjustmentInventory valuation adjustment

NIPA's National income and product accountsp Preliminaryr Revised

The NIPA estimates for 1929-76 are in The National Income and Product Accounts of the United States, 1929-76: Statistical Tables (StockNo. 003-010-00101-1, price $10.00). Estimates for 1977-79 and corrections for earlier years are in the July 1982 SURVEY; estimates for 1980-82and corrections for earlier years are in the July 1983 SURVEY. Summary NIPA Series, 1950-82, are in the October 1983 SURVEY. These publica-tions are available from the Superintendent of Documents and Commerce Department District Offices; see addresses inside front cover.

Table 1.1-1.2.Gross National Product in Current and Constant Dollars

Gross national productPersonal consumption expenditures

Durable goodsNondurable goods.. .. ..Services

Gross private domestic investmentFixed investment

Nonresidential ... .StructuresProducers' durable equipment

ResidentialNonfarm structures .Farm structuresProducers' durable equipment

Change in business inventoriesNonfarmFarm

Net exports of goods and servicesExportsImports

Government purchases of goods and servicesFederal

National defenseNondefense

State and local

Billions of dollars

1982

3,073.0

1,991.9244.5761.0986.4414.5439.1348.3141.9206.4

90.886.01.53.2

245-23.1-1.4

17.4

347.6330.2649.2258.7179.479.3

390.5

1983 r

3,310.8

2,157.0279.1803.8

1,074.2

470.9479.6348.9131.5217.4130.7125.6

1.53.6

-8.7-3.4-5.4-7.1

336.8344.0

690.0275.2200.2

75.0414.8

Seasonally adjusted at annual rates1982

III

3,090.72,008.8

243.4766.6998.9425.3430.2342.3140.0202.2

87.983.41.33.349

-2.32 6

.9346.0345.0655.7261.7183.678.1

394.0

IV

3,109.6

2,046.9252.1773.0

1,021.8

377.4433.8337.0138.6198.496.891.22.33.3

564-53.7-2.7

5.6321.6316.1679.7279.2190.888.5

400.5

1983I

3,171.52,073.0

258.5777.1

1,037.4

404.1

443.5332.1132.9199.3111.3106.7

1.33.4394

-39.0-.4

17.0326.9309.9677.4273.5194.479.1

404.0

II

3,272.0

2,147.0277.7799.6

1,069.7450.1464.6336.3127.4208.8128.4123.3

1.53.5

14 5-10.3

4 2

-8.5327.1335.6683.4273.7199.474.3

409.7

III

3,362.22,181.1

282.8814.8

1,083.5501.1492.5351.0130.9220.2141.5136.3

1.63.68.5

18.499

183341.1359.4698.3278.1201.2

76.9420.2

IV r

3,437.3

2,227.0297.4823.6

1,106.0528.2517.7376.2134.8241.4141.5136.3

1.63.7

10.517.4

-6.9-18.7352.3371.0

700.9275.6206.0

69.6425.3

Billions of 1972 dollars

1982

1,485.4970.2139.8364.2466.2194.5203.9166.1

53.4112.737.835.2

.61.9

-9.486-.8

28.9147.3118.4

291.8116.678.837.8

175.2

1983 r

1,535.11,010.9

156.2375.9478.7

218.3221.6168.649.8

118.853.050.3

.62.1

-3.36

-2.7

12.6139.3126.7293.3118.084.233.8

175.3


III

1,485.7971.0138.2364.7468.2198.4199.8163.3

53.0110.336.534.1

.51.913.1

14

24.0146.4122.4

292.2116.980.436.5

175.3

IV

1,480.7

979.6143.2366.0470.4

178.4201.1160.5

52.2108.340.637.8

.91.9

-22.7-21.1-1.623.0

136.5113.5299.7124.481.443.0

175.2

1983

I

1,490.1986.7145.8368.9472.0

190.0205.4159.9

50.3109.645.543.0

.52.0

-15.415.1-.3

20.5137.3116.8292.9118.482.735.7

174.5

II

1,525.11,010.6

156.5374.7479.4

210.0215.6163.0

48.3114.7

52.650.0

.62.15.4

-3.3-2.1

12.3136.2123.9292.1117.6

84.233.4

174.5

III

1,553.41,016.0

157.9378.1480.1230.7227.0170.149.6

120.556.854.1

.62.13.88.85.0

11.4140.7129.2295.2118.984.234.7

176.3

IV '

1,571.91,030.2

164.7381.9483.6242.3238.4181.3

50.9130.4

57.154.3

.62.13.97.4

-3.56.3

143.2136.9293.2117.185.731.3

176.1

Table 1.3-1.4.Gross National Product by Major Type of Product in Current and Constant Dollars

Gross national productFinal salesChange in business inventories

GoodsFinal salesChange in business inventories

Durable goodsFinal salesChange in business inventories

Nondurable goodsFinal salesChange in business inventories

ServicesStructuresAddenda:

Gross domestic purchases *Final sales to domestic purchasers *

3 073 030975

2451208913054' 24550085163155

78017891

911 511 1

281.0

3055630801

3 31083,319 5

87

1364113728

8754735524

5181678204

361 637 1

309.6

3317933266

3 0907

3095649

1 286 61 291 5

4 951845120

647683779 5113

1 527 22769

3089830947

3 109 6

31659564

1 264 81 321 2

56 4474 05190450

7908802 2114

1 56052843

3104031604

3 171 532109

3941 292 21 331 6

39 448275209382

80958106

12

1 58842909

315463 1939

3272 0

32866145

1 346 81 361 3

14 553685457

8981008157

571 623 4

301 9

3280532950

3 362 233537

851 38891 3804

855689555913 1

8200824 5

451 651 0

3223

3 380 533719

3 437 334269

10 51 42831 417 9

10560095873

13 6827 4830 6

311 685 8

323 2

3456 13 4456

1 485 414948

94

661 6671 0

94269 62761

653920394 9

29712 2111 6

1 456 51 4659

1 535 115384

33

687 46907

3329072926

1 8396 6398 1

1 5725 1122 7

1 522 51 5258

1 485714870

13

661 66630

1 327492716

3 23867391 3

4 6713 91102

1 461 71 4630

1 480715034

227

652 1674 8227

25642753189

39563994

38715 0113 6

1 457 71 4804

1 490 115055

15465696723154

261 32770157

395 639523

717 81154

1 469 61 4850

1 525 115305

54681 8687 2

54287 4291 137394 5396 1

17

723 01203

1 51281 5183

1 553 41 549.7

38

69906953

3 82999294 1

58399 2401 2

20727 0127 3

1 542 01 538 2

1 571 91,568.1

39711 87079

39314 43081

64397 33998

25732 5127 7

1 56571 561 8

1. Gross domestic purchases equals GNP less exports plus imports; final sales to domestic purchasers equals final sales less exports plus imports.

Table 1.5-1.6.Gross National Product by Sector in Current and Constant Dollars

Gross national product

Gross domestic productBusiness

NonfarmNonfarm less housingHousing

FarmStatistical discrepancy

Households and institutionsPrivate householdsNonprofit institutions

GovernmentFederalState and local

Rest of the worldAddendum:

Gross domestic business product less housing

3073 0

30257259462520022526

26747415

107076

9943241101 12230

47.3

2,318.4

3 3108

3264128027273172,438 8

29297101

114982

1067346610612404

46.7

3 09073 044 22 610 12536622659

2707709

2 51085

77100 83257100 72250466

3 1096

3063 52619 12539122610

278 1758

4 21108

7810293337104 22295460

3 171 53 127 22 67552*601823179

28407491 2

112280

104 2339510562338443

3 272 0

3227 9276982 700 52 411 0

28967273 5

114 18 1

106 0344 11060238 144 1

3 362 23 314 12*849*82779 02483 3

29576832 5

115 68 2

107 4348 8106 2242648 1

3 437 3

3 387 22 915 62 84522 543 1

302 167 92 5

117 884

1094353 9106 6247 250 1

1 485 41 462 31 259 61 22041 078 3

142 13902467

Q O43 4

156 150 5

105623 i

1 1162

1 coc i

1 513 41 309 91 273 21 1256

147 7366

Q

47 53 5

44 1156 150 8

105221 7

1 4R* 7

1 463 12 260 41 223 41 0807

142 73571 2

46 83 343 5

156050 5

105 422 6

1 400 7

1 458 61 255 91 213 21 0689

144 3406

2 046 93 3

43 5155850 7

105 122 1

1 J.QA 1

1 469 21*26611 227 51*081 9

145 639 2g47 13 443 7

155 950 8

105 121 0

1 59^ 1

1 504 41 301 21*265 11 1182

146 937 71 6

47 33 4

43 9156 050 8

105 120 7

1 ^^ A.

1 531 11 327 51 290 91 1426

148 335 5i i

47 63 5

44 1156 0

en Q105 222 3

1 ^71 Q

1 549 01 344 71 309 41 159 6

149 934 1

^ -^48 03 5

44 5156 3

CA 0

105 423 o



Table 1.13.Gross Domestic Product of Corporate Business in Current Dollars and Gross Domestic Product of Nonfinancial Corporate Businessin Current and Constant Dollars

Gross domestic prod-uct of corporatebusiness

Capital consumption allow-ances with CCAdj ....

Net domestic productIndirect business tax and

nontax liability plusbusiness transfer pay-ments less subsidies

Domestic incomeCompensation of em-

ployeesWages and salariesSupplements to

wages and salaries ...Corporate profits with

IVA and CCAdjProfits before tax

Profits tax liability ..Profits after tax

DividendsUndistributed

profitsIVACCAdj

Net interestGross domestic

product of finan-cial corporatebusiness

Gross domesticproduct of non-financial corpo-rate business

Capital consumption allow-ances with CCAdj

Billions of dollars

1982

1,897.1

222.0

1,675.1

187.6

1,487.5

1,282.21,065.8

216.4

143.0

152.459.293.254.4

38.884

-1.162.3

120.4

1,776.7

210.0

1983 r

2,061.5

231.6

1,830.0

206.9

1,623.1

1,363.41,126.3

237.2

204.8

183.475.7

107.762.0

45.79 4

30.954.8

142.7

1,918.8

218.2


III

1,909.4

224.5

1,684.9

188.4

1,496.5

1,290.81,072.9

217.9

147.8

156.660.895.855.5

40.3-9.0

.158.0

122.6

1,786.8

212.3

IV

1,903.2

227.7

1,675.4

191.4

1,484.0

1,289.21,070.3

218.9

137.8

143.454.089.456.7

32.610 34.7

57.1

128.2

1,775.0

215.1

1983

I

1,954.2

228.3

1,725.9

195.6

1,530.3

1,313.61,086.9

226.7

161.6

149.561.588.060.6

27.4-1.713.955.1

136.5

1,817.6

215.3

II

2,036.5

229.8

1,806.7

207.3

1,599.4

1,347.61,114.1

233.5

197.7

182.876.0

106.762.9

43.9-10.6

25.654.0

144.1

1,892.4

216.7

III

2,102.5

233.1

1,869.4

211.0

1,658.4

1,379.11,138.5

240.5

225.0

205.784.9

120.762.3

58.4-18.3

37.654.3

144.7

1,957.8

219.6

IV r

235.0

213.8

1,413.41,165.5

247.9

62.2

-7.146.555.9

221.1

Table 1.11. National Income by Type of Income

National income

Compensation of employ-

Wages and salariesGovernment and gov-

ernment enterprises ....Other

Supplements to wages

Employer contribu-tions for social in-surance

Other labor income

Proprietors' income withIVA and CCAdj

Farm ..Proprietors' income

with IVAPPArli

NonfarmProprietors' incomeIVACCAdj

Rental income of personswith CCAdj

Rental income of per-

CCAdjCorporate profits with IVA

and CCAdjCorporate profits with

IVAProfits before tax


Undistributedprofits

IVACCAdj

Net interest

Addenda:Corporate profits after

tax with IVA andCCAdj

Undistributed profitswith IVA and CCAdj

2,450.4

1,865.71,568.1

306.01,262.1

297.6

140.9156.6

109.021.5

29.9-8.487.484.2-.63.9

49.9

86.3-36.5

164.8

165.9174.259.2

115.168.7

46.4-8.4-1.1

261.1

105.668.7

37.0

2,648.4

1,990.21,664.1

325.71,338.3

326.1

152.7173.4

128.620.9

29.3-8.4107.797.4

911.1

54.8

93.2-38.4

227.3

196.4205.975.7

130.273.3

56.9-9.430.9

247.5

151.673.3

78.3

2,458.9

1,879.51,579.8

307.71,272.1

299.7

141.5158.2

103.615.8

24.28 4

87.884.5

74.1

50.9

87.6-36.7

168.5

168.3177.360.8

116.568.8

47.7-9.0

.1

256.4

107.668.8

38.9

2,474.0

1,889.01,586.0

314.51,271.5

302.9

142.5160.4

116.226.0

34.68 6

90.286.0-.84.9

52.3

87.4-35.2

161.9

157.2167.554.0

113.570.4

43.110 34.7

254.7

107.970.4

37.5

2,528.5

1,923.71,610.6

319.21,291.5

313.1

148.8164.3

120.622.2

30.68 4

98.491.0-.27.6

54.1

91.6-37.5

181.8

168.0169.761.5

108.271.4

36.71 7

13.9

248.3

120.371:4

48.9

2,612.8

1,968.71,647.1

323.31,323.8

321.6

151.5170.1

127.221.0

29.4-8.4106.296.8

-1.110.5

54.8

92.237.4

218.2

192.7203.376.0

127.272.0

55.210 625.6

243.8

142.272.0

70.1

2,686.9

2,011.81,681.5

328.41,353.1

330.3

153.9176.4

126.715.5

23.984

111.2100.6

1 512.2

53.9

94.040.0

248.4

210.8229.184.9

144.173.7

70.4-18.3

37.6

246.1

163.473.7

89.7

2,056.31,717.0

332.11,384.9

339.3

156.6182.7

139.925.1

33.4-8.3114.8101.3-.714.2

56.2

94.8-38.6

75.9

7 146.5

251.9

75.9

Net domestic product ....Indirect business tax and


Domestic incomeCompensation of em-

ployeesWages and salariesSupplements to

wages and salaries...Corporate profits with

IVA and CCAdj ...Profits before tax


DividendsUndistributed

profitsIVACCAdj

Net interest

Gross domestic prod-uct of nonfmancialcorporate business-

Capital consumption allow-ances with CCAdj

Net domestic productIndirect business tax and


Domestic income

Billions of dollars

1982

1,566.8

179.01,387.8

1,198.6997.3

201.3

124.0

131.541.290.357.2

33.1-8.4

.865.2

1983 r

1,700.6

197.21,503.4

1,269.01,048.9

220.1

175.0

151.955.196.864.7

32.194

32.559.4


III

1,574.5

179.61,394.9

1,205.61,003.1

202.6

127.5

134.442.092.458.5

33.99 o2.1

61.8

IV

1,559.8

182.41,377.4

1,201.2998.2

203.0

114.3

117.933.684.459.2

25.1-10.3

6.761.9

1983

I

1,602.3

186.41,415.9

1,222.41,012.0

210.4

133.9

119.741.877.963.3

14.51 7

15.959.7

II

1,675.7

197.61,478.1

1,253.91,037.2

216.7

165.7

149.055.094.065.6

28.410 627.358.6

III

1,738.2

201.11,537.1

1,283.71,060.4

223.3

194.5

173.863.9

109.865.1

44.8-18.3

39.058.9

IV r

203.7

1,316.11,085.9

230.2

64.9

7 i47.860.6


857.7

96.8

760.9

94.2666.6

893.8

100.4

793.4

98.5695.0

859.5

97.2

762.3

94.0668.3

846.4

98.2

748.2

93.9654.3

856.0

98.9

757.2

96.4660.8

885.8

99.8

786.0

97.5688.4

909.4

101.1

808.3

99.1709.2

101.9

100.9

Table 1.7.- Relation of Gross National Product, Net National Product,National Income, and Personal Income


Less:Capital consumption al-

lowances with CCAdj...Capital consumption al-

lowancesLess- CCAdj

Equals: Net national prod-uct

Less:Indirect business tax and

nontax liabilityBusiness transfer pay-

mentsStatistical discrepancy

Plus: Subsidies less currentsurplus of governmententerprises

Equals: National income

Less:Corporate profits with

IVA and CCAdjNet interestContributions for social

insuranceWage accruals less dis-

bursementsPlus:

Government transfer pay-ments to persons... .

Personal interest income-Personal dividend income.Business transfer pay-

ments

Equals: Personal income

Billions of dollars

1982

3,073.0

359.2

312.6466

2,713.8

258.3

14.1.5

9.5

2,450.4

164.8261.1

253.0

0

260.4366.266.4

14.1

2,578.6

1983 r

3,310.8

377.1

367.794

2,933.7

285.9

15.5.1

16.2

2,648.4

227.3247.5

272.34

388.1366.370.5

15.5

2,742.1


III

3,090.7

363.0

317.5455

2,727.7

259.9

14.32.5

8.0

2,458.9

168.5256.4

254.3

0

366.1364.8

66.4

14.3

2,591.3

IV

3,109.6

368.3

329.5-38.8

2,741.3

264.8

14.74.2

16.6

2,474.0

161.9254.7

255.4

0

384.3363.167.9

14.7

2,632.0

1983

I

3,171.5

370.8

341.8-29.1

2,800.7

270.6

15.0-1.2

12.3

2,528.5

181.8248.3

265.4

0

383.6357.268.8

15.0

2,657.7

II

3,272.0

373.3

359.0-14.3

2,898.7

285.8

15.3-3.5

11.8

2,612.8

218.2243.8

270.1

-1.3

390.0357.169.3

15.3

2,713.6

III

3,362.2

381.7

378.53.2

2,980.5

291.1

15.72.5

15.8

2,686.9

248.4246.1

274.4

-.4

386.8369.970.9

15.7

2,761.9

IV r

3,437.3

382.5391.7

9.2

3,054.8

295.8

16.1

24.8

""251.9

279.1

0

391.9381.0

72.9

16.1

2,835.3



Table 2.1.Personal Income and Its Disposition Table 2.2-2.3.Personal Consumption Expenditures by Major Type of

Personal income

Wage and salary disburse-mentsCommodity-producing

ManufacturingDistributive industries ..Service industriesGovernment and govern-

ment enterprises

Other labor income

Proprietors' income with IVAand CCAdj

FarmNonfarm

Rental income of personswith CCAdj

Personal dividend income

Personal interest income

Old-age, survivors, disabil-ity, and health insurancebenefits

Government unemploymentinsurance benefits

Veterans benefitsGovernment employees re-

tirement benefitsOther transfer paymentsAid to families with de-

pendent childrenOther

Less: Personal contribu-tions for social insurance .

Less: Personal tax andnontax payments

Equals: Disposable personalincome

Less: Personal outlaysPersonal consumption ex-

pendituresInterest paid by consumers

to businessPersonal transfer payments

to foreigners (net)Equals: Personal saving

Addenda:Disposable personal

income:Total, billions of 1972 dol-

larsPer capita:

Current dollars1972 dollars

Population (millions)Personal saving as percent-

age of disposable person-al income

rroauct in current ana constant uouarsBillions of dollars

1982

2,578.6

1,568.1

509.2383.8378.8374.1

306.0

156.6

109.021.587.4

49.9

66.4

366.2

374.5

204.5

24.816.4

54.274.6

13.461.2

112.0

402.1

2,176.5

2,051.1

1,991.9

58.1

1.1

125.4

1,060.2

9,3774,567232.1

5.8

1983 r

2,742.1

1,664.5

529.7402.8397.2411.5

326.2

173.4

128.620.9

107.7

54.8

70.5

366.3

403.6

222.8

25.616.7

58.680.0

14.365.7

119.5

406.5

2,335.6

2,220.9

2,157.0

62.7

1.1

114.7

1,094.3

9,9694,671234.3

4.9


III

2,591.3

1,579.8

508.9384.8381.9381.2

307.7

158.2

103.615.887.8

50.9

66.4

364.8

380.4

209.3

24.916.3

55.174.9

13.361.6

112.7

399.8

2,191.5

2,068.4

2,008.8

58.5

1.1

123.0

1,059.3

9,4304,558232.4

5.6

IV

2,632.0

1,586.0

499.5377.4383.5388.5

314.5

160.4

116.226.090.2

52.3

67.9

363.1

399.0

216.5

32.216.6

55.877.9

13.564.3

112.9

404.1

2,227.8

2,107.0

2,046.9

59.1

1.0

120.8

1,066.1

9,5624,576233.0

5.4

1983

I

2,657.7

1,610.7

508.6385.4386.4396.4

319.2

164.3

120.622.298.4

54.1

68.8

357.2

398.5

217.4

29.016.9

56.678.7

14.164.5

116.5

401.8

2,255.9

2,134.2

2,073.0

60.2

1.0

121.7

1,073.8

9,6614,599233.5

5.4

II

2,713.6

1,648.4

522.2397.4394.3407.3

324.6

170.1

127.221.0

106.2

54.8

69.3

357.1

405.3

221.1

30.016.6

58.379.3

14.464.9

118.6

412.6

2,301.0

2,209.5

2,147.0

61.4

1.1

91.5

1,083.0

9,8344,629234.0

4.0

III

2,761.9

1,681.9

537.8409.2398.9416.4

328.8

176.4

126.715.5

111.2

53.9

70.9

369.9

402.5

223.8

22.616.6

59.380.2

14.366.0

120.5

400.1

2,361.7

2,245.9

2,181.1

63.6

1.2

115.8

1,100.1

10,0694,690234.6

4.9

IV T

Personal consump-1J17.0 tion expenditures

5500 Durable goods

409.1 Motor vehicles and parts ...425^9 Furniture and household

equipment..009 -( Other1827 Nondurable goods

Food139.9 Clothing and shoes25 i Gasoline and oil

114^8 Other nondurable goodsFuel oil and coalOther

56.2 Services72.9 .Housing

001 n Household operationElectricity and gas

^Qg i OtherTransportationOther

228.8

20.916.5

Personal consump-60.1 tion expenditures81.8

Durable goods14.467.4 Motor vehicles and parts ...

Furniture and householdequipment

122.5 Other ...

Nondurable goods411.4

FoodClothing and shoes

2 424 0 Gasoline and oilOther nondurable goods

2,294.0 Fuel oil and coalOther

2,227.0Services

65.8Housing

1 2 Household operationElectricity and gas

129 9 OtherTransportationOther

Billions of dollars

1982

1,991.9

244.5

109.9

93.541.1

761.0

396.9119.091.5

153.520.0

133.5

986.4

334.1144.376.368.068.4

439.6

1983 r

2,157.0

279.1

133.2

102.043.9

803.8

421.8125.590.8

165.621.1

144.5

1,074.2

363.6154.181.472.772.5

483.9


III

2,008.8

243.4

109.4

93.540.5

766.6

400.4119.291.3

155.620.9

134.8

998.9

337.8145.276.269.069.8

446.1

IV

2,046.9

252.1

116.1

94.941.0

773.0

404.5119.691.1

157.920.2

137.7

1,021.8

345.2147.176.870.369.2

460.3

1983

I

2,073.0

258.5

118.4

97.342.9

777.1

411.7120.087.3

158.117.7

140.4

1,037.4

352.6145.974.171.870.1

468.8

II

2,147.0

277.7

133.9

100.843.1

799.6

419.6126.490.3

163.321.2

142.1

1,069.7

359.5155.482.872.670.9

483.9

III

2,181.1

282.8

135.6

102.944.3

814.8

426.4125.193.1

170.223.0

147.2

1,083.5

367.2155.883.372.574.0

486.6

IV *

2,227.0

297.4

144.7

107.245.4

823.6

429.8130.692.6

170.722.3

148.4

1,106.0

375.2159.185.373.875.2

496.5


970.2

139.8

57.4

59.722.7

364.2

184.084.425.670.23.5

66.6

466.2

171.363.524.938.631.7

199.6

1,010.9

156.2

67.9

64.623.7

375.9

190.987.326.371.4

4.067.5

478.7

176.463.824.739.131.5

207.1

971.0

138.2

56.4

59.622.3

364.7

184.884.125.370.63.7

66.9

468.2

171.763.524.738.832.0

201.0

979.6

143.2

60.5

60.222.5

366.0

186.484.525.270.03.4

66.6

470.4

172.463.023.939.131.4

203.5

986.7

145.8

60.9

61.723.3

368.9

188.284.726.369.73.3

66.4

472.0

174.061.923.039.031.2

204.8

1,010.6

156.5

69.1

63.923.4

374.7

189.488.426.370.74.1

66.6

479.4

175.564.225.139.131.4

208.2

1,016.0

157.9

69.1

65.223.6

378.1

193.186.126.372.6

4.368.3

480.1

177.164.325.438.931.7

207.0

1,030.2

164.7

72.7

67.624.3

381.9

193.190.026.172.74.1

68.5

483.6

178.864.925.539.331.6

208.3

! 121 3 Table 5.1. Gross Saving and Investment

10,3094,769235.1

5.4

Billions of dollars

1982 1983 rSeasonally adjusted at annual rates

1982

III IV

1983

I II III IV r

Table 7.7.Current-Dollar Cost and Profit Per Unit of Constant-DollarGross Domestic Product of Nonfinancial Corporate Business

Current-dollar cost and profit perunit of constant-dollar gross do-mestic product 1

Capital consumption allowances with CCAdj...Net domestic product

Indirect business tax and nontax liabilityplus business transfer payments lesssubsidies

Domestic incomeCompensation of employeesCorporate profits with

IVA and CCAdjProfits tax liabilityProfits after tax with IVA and CCAdj ...

Net interest

Dollars

1982

2.072

.2451.827

.2091.6181.397

.145

.048

.097

.076

1983 r

2.147

.2441.903

.2211.6821.420

.196

.062

.134

.066

Seasonally adjusted1982

III

2.079

.2471.832

.2091.6231.403

.148

.049

.099

.072

IV

2.097

.2541.843

.2151.6271.419

.135

.040

.095

.073

1983

I

2.123

.2521.872

.2181.6541.428

.156

.049

.108

.070

II

2.136

.2451.892

.2231.6691.416

.187

.062

.125

.066

III

2.153

.2411.911

.2211.6901.412

.214

.070

.144

.065

IV r

Gross saving

Gross private savingPersonal savingUndistributed corporate

profits with IVA andCCAdj

Undistributed profitsIVACCAdj

Capital consumption al-lowances with CCAdj:

CorporateNoncorporate

Wage accruals less dis-bursements

Government surplus ordeficit ( ) NIPA's

FederalState and local

Capital grants received bythe United States (net)

Gross investment

Gross private domestic in-vestment

Net foreign investment

Statistical discrepan-

Billions of dollars

1982

405.8

521.6125.4

37.046.4

-8.4-1.1

222.0137.2

0

115 8-147.1

31.3

0

406.2

414.5-8.3

.5

1983 r

438.5

570.2114.7

78.356.9

-9.430.9

231.6145.6

0

-131.7-182.8

51.1

0

438.6

470.9-32.3

.1


III

397.9

524.9123.0

38.947.7

-9.0.1

224.5138.5

0

-127.0158331.3

0

400.5

425.3-24.8

2.5

IV

351.3

526.6120.8

37.543.11034.7

227.7140.5

0

175 3-208.2

32.9

0

355.5

377.4-21.9

4.2

1983

I

398.5

541.5121.7

48.936.7

-1.713.9

228.3142.6

0

-142.9-183.3

40.4

0

397.4

404.1-6.7

-1.2

II

420.6

535.091.5

70.155.2

-10.625.6

229.8143.5

0

-114.4166.151.7

0

417.1

450.1-33.0

3.5

III

455.4

587.5115.8

89.770.418.337.6

233.1148.6

0

131.8-187.3

55.5

0

457.9

501.1-43.2

2.5

IV r

""129.9

7.146.5

235.0147.6

0

0

481.9

528.2-46.3



Table 3.2.Federal Government Receipts and Expenditures Table 7.1.Implicit Price Deflators for Gross National Product

Receipts

Personal tax and nontaxreceipts

Income taxesEstate and gift taxesNontaxes

Corporate profits tax accru-als

Indirect business tax andnontax accruals

Excise taxesCustoms dutiesNontaxes

Contributions for socialinsurance

Expenditures

Purchases of goods andservices

National defenseNondefense

Transfer paymentsTo personsTo foreigners

Grants-in-aid to State andlocal governments

Net interest paidInterest paid

To persons and busi-ness

To foreigners. .Less: Interest received

Subsidies less current sur-plus of governmententerprises

SubsidiesLess: Current surplus of

government enterprises .

Less: Wage accruals lessdisbursements

Surplus or deficit(-), NIPA's

Social insurance fundsOther

Billions of dollars

1982

617.4

304.7296.7

7.6.3

46.5

48.332.48.67.3

217.9

764.4

258.7179.479.3

321.1314.8

6.3

83.984.9

107.7

89.518.222.8

15.814.9

-.8

0

-147.1

-29.0-118.0

1983 r

643.6

295.9289.7

5.9.3

59.3

54.036.59.18.5

234.4

826.4

275.2200.275.0

345.1338.7

6.3

86.596.5

121.1

103.417.724.6

22.619.8

-2.9

-.4

-182.8

-28.8-154.0


III

615.2

300.6293.0

7.3.3

47.8

47.931.7

8.47.8

218.9

773.5

261.7183.678.1

325.9320.1

5.8

83.088.6

111.7

92.818.923.1

14.213.5

-.8

0

-158.3

-34.3-124.1

IV

612.6

303.0296.7

6.0.3

42.1

48.332.48.37.6

219.3

820.9

279.2190.888.5

344.8337.2

7.6

85.089.1

112.6

93.818.823.5

22.817.9

-4.9

0

-208.2

-43.9-164.3

1983

I

623.3

297.7291.7

5.7.3

48.6

48.633.37.57.7

228.5

806.6

273.5194.479.1

340.3335.3

5.0

85.888.4

113.0

95.417.624.6

18.616.4

-2.3

0

-183.3

-32.0-151.4

II

652.6

304.2297.8

6.1.3

59.8

56.038.68.98.4

232.6

818.7

273.7199.474.3

347.0341.0

6.0

86.791.8

116.0

98.617.424.2

18.217.7

-.5

-1.3

-166.1

-31.4-134.7

III

645.2

286.9280.2

6.3.4

66.6

55.537.09.88.8

236.2

832.5

278.1201.276.9

343.5337.5

6.0

87.2101.0125.8

108.117.724.8

22.317.8

-4.5

-.4

-187.3

-25.9-161.4

IV r

295.0289.1

5.5.4

55.936.910.09.0

240.2

847.8

275.6206.069.6

349.6341.2

8.3

86.4104.7129.6

111.618.024.9

31.427.2

-4.2

0

-25.7

Table 3.3.State and Local Government Receipts and Expenditures

Receipts

Personal tax and nontaxreceipts

Income taxesNontaxesOther

Corporate profits tax accru-als

Indirect business tax andnontax accruals

Sales taxes.Property taxesOther

Contributions for social in-surance

Federal grants-in-aid...

Expenditures

Purchases of goods andservices

Compensation of employ-ees

OtherTransfer payments to per-

sonsNet interest paid

Interest paidLess: Interest received

Less: Dividends received

Subsidies less current sur-plus of governmententerprises

SubsidiesLess: Current surplus of

government enterprises-

Less: Wage accruals lessdisbursements

Surplus or deficit(-), NIPA's

Social insurance fundsOther

439.1

97451836492

127

210.0955851293

35 1839

4078

3905

22301675

45619829949.7

2.3

635

6.7

o

31.3

33.21 9

483.2

110 559441 1100

164

231.9105994431 6

37 9865

432 1

4148

24041743

49322733856.6

2.8

655

7.0

o

51.1

36.1150

442.8

99353037094

130

212.096586429 1

35 4830

411 4

3940

22501690

46019930650.5

2.4

635

6.7

o

31.3

33.52 1

4507

101 253538195

119

216.6980888298

36 1850

417 8

4005

22951710

47 121 131 552.6

2.5

625

6.7

o

32.9

34.21 2

461 7

104 155 139396

129

222.0100 4912305

36 9858

421 3

4040

2338170 1

48322032354.3

2.6

635

6.8

o

40.4

34.95 5

4787

108 458040499

162

229.91050935313

37 5867

427 0

4097

238 1171 5

49022533355.8

2.7

645

6.9

o

51.7

35.616 1

4927

113 361 541710 1

184

235.61080955321

38 2872

437 i

4202

2426177649423034357.3

2.8

655

7.1

o

55.5

36.618 9

116 463 1430103

240.01100973327

38 9864

442 9

4253

24721780

50723435458.8

3.0

675

7.2

o

37.3


Personal consumptionexpenditures

Durable goodsNondurable goodsServices

Gross private domesticinvestment

Fixed investmentNon residential

StructuresProducers' durable equipment ..

ResidentialNonfarm structuresFarm structures ,Producers' durable equipment ..

Change in business inventories

Net exports of goods andservices

ExportsImports

Government purchases ofgoods and services

FederalNational defenseNondefense

State and local

Index numbers, 1972=100

1982

206.88

205.3174.8209.0211.6

215.3209.7265.8183.1240.2244.0245.9168.7

236.0278.9

222.5222.0227.7210.0222.9

1983 r

215.67

213.4178.7213.8224.4

216.4206.9264.0183.0246.6249.6251.2172.5

241.7271.5

235.2233.2237.7222.0236.6


III

208.03

206.9176.1210.2213.4

215.3209.6264.3183.3240.9244.9242.4169.8

236.3281.8

224.4223.8228.3213.9224.7

IV

210.00

209.0176.1211.2217.2

215.7209.9265.4183.2238.4241.5249.9171.1

235.6278.5

226.8224.4234.3205.7228.5

1983

I

212.83

210.1177.3210.6219.8

215.9207.7264.0181.8244.9248.2248.2171.7

238.0265.4

231.3230.9234.9221.7231.6

II

214.55

212.5177.5213.4223.1

215.5206.3263.7182.1243.9246.8249.8171.5

240.2270.7

234.0232.7236.7222.6234.8

III

216.44

214.7179.1215.5225.7

217.0206.3263.7182.7249.0251.9251.5172.4

242.5278.1

236.5233.8238.8221.7238.3

IV r

218.67

216.2180.6215.7228.7

217.1207.4264.6185.1248.0250.8254.7174.4

246.0271.0

239.1235.4240.22222241.5

Table 7.2.Fixed-Weighted Price Indexes for Gross National Product,1972 Weights


Personal consumptionexpenditures

Durable goodsNondurable goodsServices

Gross private domesticinvestment

Fixed investmentNonresidential

StructuresProducers' durable equipment ..

ResidentialChange in business inventories

Net exports of goods andservices

ExportsImports

Government purchases ofgoods and services ,

Federal. ..National defenseNondefense

State and local

Addenda:Gross domestic purchases1Final salesFinal sales to domestic purchas-

ers1

Personal consumption expendi-tures, food

Personal consumption expendi-tures, energy . .. . . .

Other personal consumption ex-penditures

Gross domestic productBusiness

Nonfarm

Index numbers, 1972 = 100

1982

214.7

213.2181.2219.0218.9

231.5225.7246.2214.0242.4

244.1309.4

226.4230.6236.7215.0223.6

218.9214.7

218.9

217.3

363.7

198.1

214.7215.2215.2

1983 r

223.9

221.9185.9223.3233.0

234.8230.3248.5219.9243.4

249.2299.4

236.9238.1244.1222.9236.1

227.1223.9

227.2

221.8

365.6

208.7

224.0223.6


III

216.2

214.7182.3220.1220.8

232.8227.2246.9215.9243.3

244.2306.7

227.5230.8236.6215.8225.3

220.2216.3

220.3

218.2

366.8

199.7

216.3216.8

IV

218.7

217.4182.9221.7225.3

232.5228.6248.2217.4240.0

243.9306.1

231.4235.6241.9219.7228.6

222.7218.8

222.8

218.4

374.9

202.6

218.8218.8

1983

I

220.6

218.3183.9220.0228.5

235.6229.9248.1219.4246.5

245.8303.2

233.7237.0242.9221.7231.5

224.3220.6

224.3

219.5

357.0

205.1

220.6220.8

II

222.9

220.9184.8222.7231.6

235.2230.1247.5220.1244.9

247.4298.2

235.2236.2241.8221.9234.5

226.1222.9

226.2

222.3

362.9

207.4

223.0223.0

III

225.5

223.3186.6224.4234.8

237.4230.9248.4220.8249.7

249.8299.4

238.3238.7244.7223.3238.0

228.7225.5

228.7

221.6

370.4

210.2

225.5225.6

IV r

227.7

225.6188.4226.0238.0

237.6231.9250.1221.4248.6

253.7298.6

240.6240.4246.6224.6240.6

230.6227.8

230.7

223.6

372.2

212.7

227.8227.8

Table 7.1-7.2:1. Gross domestic purchases equals GNP less exports plus imports; final sales to domestic pur-

chasers equals final sales less exports plus imports.



Table 8.1.Percent Change From Preceding Period in Gross National Product in Current and Constant Dollars, Implicit Price Deflators, andPrice Indexes

Gross national product:Current dollars ....1972 dollarsImplicit price deflator ..,Chain price indexFixed-weighted price index

Personal consumption expenditures:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Durable goods:Current dollars1972 dollarsImplicit price deflatorsChain price indexFixed-weighted price index

Nondurable goods:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed- weighted price index

Services:Current dollars1972 dollarsImplicit price deflatorChain price index

Gross private domesticinvestment:

Current dollars1972 dollarsImplicit price deflator

Fixed-weighted price index

Fixed investment:

1972 dollarsImplicit price deflatorChain price index

Nonresidential:Current dollars .1972 dollarsImplicit price deflator

Fixed-weighted price index ...Structures:

Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price

Producers' durableequipment:

Current dollars1972 dollarsImplicit price deflator

Fixed-weighted priceindex

Residential:Current dollars1972 dollarsPh c ' HPFixed-weighted price index ...

Exports:Current dollars1972 dollarsImplicit price deflatorP1 t\ Vit H ' ' H

Imports:

1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Percent

1982

4.01.96.06.56.4

7.31.45.85.95.7

3.5.9

4.54.75.0

3.7.5

3.23.22.9

11.22.98.18.48.6

127-14.5

-3.8-6.9

3.35.24.7

-1.1-4.7

3.85.85.6

6.41.84.65.1

4.1

-5.7-7.5

2.06.2

6.7

-13.01542.93.23.1

-5.7-7.8

2.22.62.4

-3.61.4

-5.020

-3.1

1983 r

7.73.34.24.44.3

8.34.23.94.24.1

14.211.72.22.32.6

5.63.22.32.22.0

8.92.76.06.26.5

13.612.2

9.28.7.5.6

1.4

.21.5

-1.31.12.0

7 3-6.7_ 7-'.5

.9

5.35.4.0

2.3

2.8

44.040.32.7

-1.5.4

-3.1-5.4

2.42.32.1

4.27.0

-2.72.2

-3.2

Percent at annual rates


III

2.7-1.0

3.75.95.9

7.5.9

6.56.46.7

.73.74.52.93.5

6.41.35.15.55.9

10.12.17.88.18.4

65-5.8

-11.7-9.6-2.3

2.32.3

-11.3-8.8-2.8

3.03.7

10 9-7.2-4.1

1.2

1.4

-11.6-9.6-2.2

4.2

5.2

-13.0-13.0I

-.1-.2

-18.9-19.2

.4g

-1.0

17.74.5

12.6-3.0

32

IV

2.51.33.85.04.7

7.83.64.15.15.1

15.115.2-.11.51.4

3.41.51.92.62.9

9.51.97.48.08.3

-38.0-34.6

3.42.7

.6

.5-.5

-6.0-6.6

.62.02.4

4 0-5.5

1.61.4

2.0

-7.4-7.1-.32.4

2.6

46.953.24 i

-5.2-5.4

-25.3244

-1.12

-.5

-29.6-26.1-4.6-.9-.8

1983

I

8.22.65.53.63.4

5.22.92.22.31.6

10.77.62.82.12.1

2.13.21 1

-1.9-3.1

6.31.44.85.75.9

31.528.6

9.28.8

.42.85.4

-5.7-1.5-4.2

.52.3

156-13.9-2.0-2.7

1

1.85.0

-3.02.8

3.8

75.357.311.411.211.4

6.82.44.33.63.2

7512.1

-17.5-2.6

38

II

13.39.73.34.34.3

15.110.04.64.74.9

33.232.6

.51.11.9

12.16.45.35.35.1

13.06.46.25.25.5

53.949.8

20.521.5-.8

-1.0-.7

5.17.9

-2.6-.5

.3

-15.314 9-.5

-2.9

1 0

20.619.8

.71.1

1.2

76.779.5

-1.62 5

-2.6

.2-3.2

3.63.12.6

37.426.88.3

-3.0-6.3

III

11.57.63.64.54.7

6.52.24.24.24.4

7.63.73.73.64.1

7.83.64.12.83.1

5.3.6

4.75.45.7

53.645.1

26.222.72.92.63.7

18.818.7

.1

.71.4

11.211.10.5

1.6

23.622.01.3.8

1.3

47.535.98.68.08.0

18.213.73.94.23.9

31.518.111.31.41.5

IV r

9.24.94.24.44.1

8.75.72.84.34.3

22.218.33.33.83.7

4.44.1.3

2.62.9

8.53.05.45.75.6

23.521.7

22.121.8

.3

.3

.5

31.929.02.21.11.7

12.511.01.41.9

2.7

44.537.15.4

.7

1.1

.21.8

-1.6-1.7-1.7

13.87.36.06.46.3

13.625.9

-9.8.1

-1.0

Government purchases of goods andservices:

Current dollars1972 dollars

Chain price indexFixed-weighted price index

Federal:

1972 dollars


National defense:

1972 dollars

Chain price indexFixed-weighted price index ...

Nondefense:Current dollars1972 dollarsImplicit price deflator .Chain price indexFixed-weighted price index ...

State and local:Current dollars1Q79 rl nil a TOImplicit price deflatorChain price indexFixed-weighted price index

Addenda:

Gross domestic purchases:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Final sales:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Final sales to domestic purchasers:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Gross domestic product:Current dollars1972 dollarsImplicit price deflator..Chain price indexFixed-weighted price index ,

Business:Current dollars1972 dollars -.Implicit price deflatorChain price indexFixed- weighted price index

Nonfarm:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Disposable personalincome:

Current dollars ,.1972 dollars

Percent

1982

9.01.87.07.26.7

12.95.66.97.37.3

16.57.18.88.27.5

5.42.72.75.56.6

6.6

7.17.16.3

4.4-1.0

5.46.05.7

5.5-.76.36.56.4

5.9.2

5.66.05.8

4.2-1.7

6.06.56.4

3.4-2.0

5.66.16.0

3.6-2.2

5.96.461

6.3.5

1983 r

6.3.5

5.75.34.6

6.41.25.14.03.3

11.66.94.43.93.1

-5.410.65.74.23.7

6.2.1

6.26.15.6

8.64.53.93.93.8

7.22.94.14.44.3

8.04.13.83.93.8

7.93.54.24.44.3

8.04.03.94.13.9

8.44.33.9

7.33.2

Percent at annual rates


III

16.19.46.25.85.3

32.126.34.63.83.6

20.814.05.93.83.0

64.659.83.03.75.4

6.8 41.27.16.4

7.11.65.55.75.6

1.9-1.5

3.45.96.0

6.21.05.25.75.6

3.2-.53.75.96.0

2.5-.53.15.75.8

2.4-.22.6

6.13

IV

15.510.64.47.27.0

29.528.31.07.68.7

16.55.1

10.88.79.2

64.692.5

-14.55.07.3

6.8-.16.96.95.9

1.8-1.1

3.04.94.6

9.44.54.75.04.7

8.84.83.84.94.6

2.6-1.2

3.85.04.7

1.4-1.4

2.84.23.8

.4-3.3

3.8

6.82.6

1983

I

13-8.8

8.24.74.0

8 0-18.0

12.23.82.3

7.86.51.23.11.7

-36.0-52.6

35.05.33.8

3.5-1.8

5.45.45.2

6.73.33.33.02.8

5.8.6

5.23.63.4

4.31.23.02.92.7

8.62.95.53.63.4

8.93.35.43.83.6

10.34.85.2

5.12.9

II

3.6-1.1

4.73.62.6

.3283.2

.6-1.2

10.77.43.1

.2-1.8

22.223.5

1.81.5.3

5.805.85.75.3

16.912.34.13.73.4

9.86.82.84.34.3

13.39.33.73.73.4

13.59.93.24.34.3

14.911.53.04.14.1

16.112.82.9

8.23.5

III

9.04.44.45.65.3

6.64.61.94.94.2

3.603.65.34.8

14.916.9

-1.73.72.6

10.74.36.16.26.1

12.87.94.54.34.5

8.45.13.24.64.7

9.75.44.14.34.5

11.17.33.64.64.7

12.18.43.44.54.7

12.18.43.4

11.06.5

IV r

1.5274.44.23.9

-3.5602.72.72.9

10.07.42.33.03.1

32.833.5

.92.02.4

4.955.45.24.6

9.26.32.83.73.5

9.04.84.04.34.2

9.06.32.63.73.5

9.14.74.24.34.1

9.65.34.14.34.0

9.95.83.8

11.07.9

NOTE.The implicit price deflator for GNP is a weighted average of the detailed price indexesused in the deflation of GNP. In each period, the weights are based on the composition ofconstant-dollar output in that period. In other words, the price index for each item (1972=100)is weighted by the ratio of the quantity of the item valued in 1972 prices to the total output in1972 prices. Changes in the implicit price deflator reflect both changes in prices and changes in

the composition of output. The chain price index uses as weights the composition of output inthe prior period, and therefore reflects only the change in prices between the two periods.However, comparisons of percent changes in the chain index also reflect changes in thecomposition of output. The fixed-weighted price index uses as weights the composition of outputin 1972. Accordingly, comparisons over any time span reflect only changes in prices.



Reconciliation and Other Special Tables

Table 1.Reconciliation of Changes in Compensation Per Hour in the Business Economy OtherThan Farm and Housing and Average Hourly Earnings in the Private Nonfarm Economy,Seasonally Adjusted

1. Compensation per hour of all persons in the business economy other than farm and housing(percent change at annual rate) 1

2 Less* Contribution of supplements

4. Less: Contribution of employees of government enterprises and self-employed and unpaid familyworkers ..

5. Equals: Wages and salaries per hour of employees in the private nonfarm economy (percentchange at annual rate)

7 Less' Contribution of non-BLS data detailed weighting and seasonal adjustment8. Equals: Average hourly earnings, production and nonsupervisory workers in the private

nonfarm economy (percent change at annual rate)

I

7.11 l

3

.2

5.5

- 3

2

5.9

19

II

4.5

.33

.1

3.7

-.5

.5

3.7

33

IIP

4.1

.4

2

.2

3.4

-.4

.9

2.9

IV

3.7

.5

o

.4

3.6_ .1

-1.9

5.6

r Revised.

p Preliminary.

1. BLS estimates of changes in hourly compensation in the nonfarm business sector for the four quarters are 6.8, 4.3, 3.8, and4.5 percent.

Table 2.National Defense Purchases of Goods and Services

National defense purchases..

Durable goodsMilitary equipment

AircraftMissilesShipsVehicles .Electronics equipmentOther

Other durable goods

Nondurable goodsBulk petroleum productsAmmunitionClothing and textilesOther nondurable goods

ServicesCompensation of employees

MilitaryCivilian

Other servicesContractual research and developmentTravelTransportationCommunicationsDepot maintenanceOther ....

StructuresMilitary facilitiesOther

Addenda:Total purchases less compensationTotal purchases less compensation and bulk petro-

leum

Seasonally adjusted at annual ratesBillions of dollars

1982

IV

190.8

53.642.918.06.15.73.83.36.0

10.7

15.010.62.5

.71.2

118.170.642.228.447.514.42.73.31.07.5

18.5

4.12.51.6

120.2

109.6

1983

I

194.4

55.345.518.07.85.83.73.46.99.7

14.810.12.6

.91.2

120.371.542.429.148.816.22.43.11.07.6

18.4

3.92.31.6

122.9

112.8

II

199.4

60.149.821.16.77.34.33.56.9

10.2

14.09.52.31.01.1

120.771.742.529.249.015.92.63.41.18.0

18.1

4.62.91.7

127.7

118.1

III

201.2

58.548.419.67.46.94.23.66.7

10.0

13.78.82.9

.91.2

124.271.842.629.352.416.22.63.71.28.4

20.3

4.73.01.7

129.3

120.5

IV

206.0

62.452.921.29.27.54.83.66.69.5

12.67.62.9

.91.1

126.272.142.729.454.117.52.84.01.19.0

19.7

4.83.11.7

133.9

126.3


1982

IV

81.4

22.817.76.82.42.31.31.83.15.1

3.01.2

9.4.5

53.834.120.014.119.75.91.11.4.6

2.68.1

1.81.2

.7

47.3

46.2

1983

I

82.7

23.518.96.53.62.31.31.83.54.6

3.11.2

9.5.5

54.334.220.014.220.1

6.61.01.3

.62.58.0

1.71.1

.7

48.5

47.3

II

84.2

25.220.47.92.82.91.51.93.44.8

3.11.2

9.5.5

53.934.220.014.219.76.31.11.4.6

2.57.7

2.01.3.7

50.0

48.8

III

84.2

23.719.06.43.22.71.41.93.34.7

3.11.110.5.5

55.434.220.014.221.26.51.11.6

.72.78.7

2.01.3

.7

50.0

48.9

IV

85.7

24.920.56.83.93.01.61.93.34.4

3.0.9

10.5.5

55.934.220.014.221.6

6.91.21.7.6

2.98.3

2.01.4.7

51.5

50.6

Percent change from preceding period at annual rates

Implicit price deflator

1982

IV

10.8

4.66.5

.936.74.1

.86.1

-1.03.7

9.06.6

122-2.9

6.9

12.113.915.511.68.87.81.4

-2.299

26.27.6

1.1.6

3.3

8.5

6.5

1983

I

1.2

-.5-2.425.9

-45.71.7

11.32.81.2

.7

-21.9210172.4

-5.2

4.13.6

.78.04.43.664

-2.525.814.62.8

4.31.37.3

8

1.6

II

3.1

5.96.0

15 546.33.4-.82.75.24.1

-14.325588

.83.6

4.3.9.7

1.210.39.68.05.159

21.19.1

4.57.03.5

3.5

6.7

III

3.6

15.318.674.0

-11.75.61.2

-1.3.1

2.7

-8.63.8

15 106.1

.51.21.11.2

-3.3-.8

-3.6-19.7

.9-2.3-.8

7.08.85.0

4.9

7.1

IV

2.3

6.56.2

10.15.72 41.42.81.7

3

-13.7.9

149.95

3.01.2

.62.04.74.41.34.83.1495.2

1.51.92.6

2.1

5.5


1982

IV

10.0

8.210.016.913.46.74 42.002.0

1.0.4

66-.70

11.814.015.511.67.7

12.02.8

-3.62.9

12.76.1

5.47.22.0

6.9

7.6

1983

I

2.4

4.44.27.6

-6.15.41.03.72.25.2

-16.023910504.3

3.73.5

.78.04.12.5451.32.98.56.9

7.99.25.4

1.6

4.5

II

1.6

3.13.32.1

13.2.7

3.01.43.02.7

-14.6-21.2

141.33.5

2.5.9.7

1.25.76.14.38.6

55.45.4

10.313.44.3

2.1

4.5

III

1.7

6.68.4

16.71.11.19.3

.5

.7

.6

-8.8-13.1

170.3

.71.21.11.3

-.4-.352

-14.4.9

-.45.1

11.213.76.2

2.1

3.5

IV

4.8

12.916.738.51 0

6-1.5

4.14.2

1.80

1230.3

2.31.1.6

2.04.78.56.21.23.3

.23.5

1.1.5

2.5

7.8

8.5


By JOSEPH C. WAKEFIELD and RICHARD C. ZIEMER

Federal Fiscal Programs

THE fiscal year 1985 budget, pre-sented to Congress in early February,continues the basic fiscal policy intro-duced by the administration in 1981.According to the administration, thispolicy will provide for sustained long-term economic growth without rapidinflation. The main features of thenew budget are:

A continued rapid increase in na-tional defense spending;

A continued reduction in thegrowth of nondefense spending;

Adherence to a policy of no majortax increases.

National defense spending increasesover 14 percent in 1985 (over 9 per-cent in real terms, according to theadministration). Increases are pro-vided for virtually all weapons-sys-tems projects already underway; nonew projects are proposed. Otherlarge increases are for operations andmaintenance and for research and de-velopment.

Nondefense spending increases 6percent; in real terms the increase is1 percent. Major increases are insocial security and medicare and innet interest. Major declines are incommerce and housing credit and innatural resources and environment.

The new budget does propose sometax increases, but on a moderatescale$7.9 billion in 1985. Instead ofproposing major tax increases, the ad-ministration looks forward to reformand simplification of the tax codes.The main goals are to close loopholes,improve taxpayer compliance, andbroaden the tax base so that rates can

NOTE.Hermione A. Anglin, Gary W. Davis,David T. Dobbs, Kathleen M. Downs, Karl D.Galbraith, Thomas M. Holloway, Robert T.Mangan, Donald L. Peters, and Deloris T.Tolson assisted the preparation of this article.

be cut. The Department of the Treas-ury currently is reviewing threemajor options: (1) a "consumption"tax, which would tax what a personspends rather than earns; (2) a broad-based income tax, which would elimi-nate many deductions, exclusions, andexemptions; and (3) a value-added orretail sales tax.

The budget incorporates a newtreatment of outlays for retired mili-

tary personnel under provisions of theFiscal Year 1984 Defense Authoriza-tion Act. This act established a mili-tary retirement trust fund, effectiveOctober 1, 1984, to be financed largelyby employer contributions; militarypersonnel will not contribute. In fiscalyear 1985, all benefits to military re-tirees and survivors will be paid fromthe trust fund and recorded in theincome security function of the

Table 1.Economic Assumptions Underlying the Fiscal Year 1985 Budget

GNP:Current dollars1972 dollars

Incomes:Personal income

Wages and salaries.Corporate profits before taxes

GNP in current dollars:Annual averageFourth quarter

GNP in 1972 dollars:Annual averageFourth quarter

GNP deflator:Annual average .... . .Fourth quarter

Consumer price index:Annual averageFourth quarter

Unemployment rate:Annual averageFourth quarter

Insured unemployment rate: lAnnual averageFourth quarter

Interest rate:91-day Treasury bills 210-year Treasury notes

Calendar year

Actual

1982 1983

Estimates

1984 1985

Billions of dollars

3,073.01,485.4

2,578.61,568.1

174.2

3,309.51,534.8

2,741.91,664.4

205.3

3,642.41,616.0

2,977.81,802.1

255.2

3,973.81,682.2

3,223.51,945.8

291.9

Percent change from preceding year

4.02.6

1 9-1.7

CyT4.4

6.04.5

7.710.4

3.36.1

) 4.2[ 4.1

3.02.9

10.19.8

5.34.5

4.55.0

4.44.5

9.18.9

4.14.0

4.84.7

4.64.7

Percent

9.510.5

4.75.2

10.713.0

9.58.4

3.83.3

8.611.1

7.87.7

3.33.3

8.510.3

7.67.5

3.33.3

7.79.2

1. Insured unemployment under the State regular unemployment insurance program, excluding recipients of extendedbenefits, as percentage of covered employment under that program.

2. Average rate on new issues within the year. The estimates assume, by convention, that interest rates vary with the rate ofinflation. They do not represent a forecast of interest rates.

Source: "The Budget of the United States Government, Fiscal Year 1985."


10 SURVEY OF CURRENT BUSINESS February 1984CHART 1

Federal Fiscal Position: Surplus or DeficitBillion $0

-50

-100

-150

-200

HIPACyclically Adjusted, NtPAUnified Budget

1975 76 77 78 79 80 81 82 83 84* 85*Fiscal Year

* Estimates from the Office of Management and Budget, and BEA.NOTE.The cyclically adjusted surplus or deficit is based on a middle-expansion trend GNP.

U.S. Department of Commerce, Bureau of Economic Analysis.

budget (rather than in the nationaldefense function). A monthly paymentto the trust fund by the Departmentof Defense (DOD), equal to 51 percentof military basic pay, will cover allcosts associated with future retire-ment liabilities of current employees.In addition, the Department of theTreasury will make annual paymentsto the trust fund over the next 40-50years to cover the unfunded retire-ment liability built up before estab-lishment of the trust fund; i.e., tocover past liabilities of retirees andcurrent employees.

The effect of the legislation is toput in place a mechanism to handlemilitary retirement that is similar tothat for civilian retirement. In theFederal sector of the national incomeand product accounts (NIPA's), Gov-ernment payments to the civil serviceretirement trust fund, which are fornewly created liabilities and arebased on current employment levelsand payrolls, are treated as employercontributions for social insurance andthus as employee compensation. Be-cause, as mentioned above, theannual military payment is for liabil-ities already existing at the establish-

ment of the fund and is based onforce levels and payrolls of the past,treatment similar to the civil servicetrust fund carries implications formilitary compensation for earlier pe-riods. Accordingly, BEA decided totreat the military trust fund transac-tions as intragovernmental transac-tions until the next comprehensive re-vision of the NIPA's. Meanwhile,BEA will review alternative treat-ments, including one that would treatthe monthly and annual payments asemployer contributions for social in-surance and as military compensa-tion, (1) with the estimates reflectingthe monthly payments beginning inthe fourth quarter of 1984, and (2)with revisions in the historical esti-mates to reflect the annual payments'funding of the retirement system asthough the payments were made asthe liabilities accrued.

Economic assumptionsThe economic assumptions underly-

ing the fiscal year 1985 budget areshown in table 1. GNP in constantdollars is forecast to increase 4.5 per-cent from the fourth quarter of 1983

to the fourth quarter of 1984 and 4percent to the fourth quarter of 1985.The forecast for 1984 assumes a sub-stantial increase in real businessfixed investment. State and local gov-ernment purchases of goods and serv-ices are also assumed to contributemore to real GNP growth than in1983. Some slowdown is expected in1984 in the growth of personal con-sumption expenditures, residentialconstruction, and inventory invest-mentnormal developments in asecond year of economic recovery.Prices, as measured by the GNP de-flator, increase 5.0 percent to thefourth quarter of 1984 and 4.7 percentto the fourth quarter of 1985. Accord-ing to the Council of Economic Advis-ers, the increase in the rate of infla-tion in 1984 "reflects the view that1983 inflation was depressed to somedegree by cyclical factors and two spe-cial factors that seem unlikely torecur in 1984. The two special factorswere the decline in energy pricesearly in 1983 and the continuing ap-preciation of the foreign exchangevalue of the dollar over the year."The unemployment rate is forecast tobe 7.7 percent in the fourth quarter of1984 and 7.5 percent in the fourthquarter of 1985.

Unified budgetThe unified budget deficit decreases

from $183.7 billion in fiscal year 1984to $180.4 billion in fiscal year 1985(table 2 and chart 1).

Table 2.Federal Government Receipts andExpenditures[Billions of dollars]

Unified budget

ReceiptsOutlays

Surplus or deficit ( )National income and product

accounts

ReceiptsExpenditures

Surplus or deficit ( )Cyclically adjusted surplus or

deficit ( ) l

I

Actual

1983

60067960

1954

63078164

-1857

1306

''iscal yeai

Estin

1984

67018538

1837

6913875 5

-1842

1680

lates

1985

7451925 5

1804

7792947 8

-1686

173 0

1. The cyclically adjusted budget is based on a middle-expansion trend GNP. A discussion of the middle-expansiontrend GNP and the cyclical adjustment of the Federal Govern-ment budget is presented in the December 1983 SURVEY OFCURRENT BUSINESS.

Sources: "The Budget of the United States Government,Fiscal Year 1985," and the Bureau of Economic Analysis.


February 1984 SURVEY OF CURRENT BUSINESS 11

Receipts increase $75.0 billionor11.2 percentin 1985, to $745.1 bil-lion. Receipts in 1984 are $670.1 bil-lion, up 11.6 percent from 1983. Taxreductions provided under the Eco-nomic Recovery Tax Act of 1981(ERTA) reduce receipts $165.0 billionin 1985 and $133.6 billion in 1984. Tax

Table 3.Relation of Current Services Budgetto Unified Budget

[Billions of dollars]

Receipts

Current services estimate . .

Plus: Proposed legislation:Petroleum overcharge fundTaxation of health insurance premi-

umsCurtailment of tax abuseStructural tax reformOther

Equals: Unified budget

Outlays

Current services estimate

Plus: Proposed program increases:International security assistanceOther

Proposed program reductions:National defenseNondefense:

Net interest paidMedicaidMedicareCivilian pay raisesFederal employee retirement and

disabilityFood and nutrition assistanceNatural resources and environment.Other

Equals: Unified budget

Fiscal year

1984

666.6

2.0

.8

.8-.1

670.1

854.0

.3

.2

1

-.1

2-.1

3

853.8

1985

737.3

3.93.21.1

2

745.1

944.9

3.02.5

-12.9

1810

-1.010

7-.6-.554

925.5

Source: "The Budget of the United States Government,Fiscal Year 1985."

Table 4.Relation of Federal Government Re-ceipts in the National Income and ProductAccounts to the Unified Budget


Unified budget receipts

Less' Coverage differences

Plus: Netting differences:Contributions to govern-

ment employees retire-ment funds .. .

Other

Timing differences:Corporate income taxFederal and State unem-

ployment insurance taxes-Withheld personal income

tax and social securitycontributions

Excise taxesOther

Miscellaneous

Equals: Federal Government receipts,NIPA

Fiscal year

1983

600.6

1.4

12.29.4

4.1

1.4

3.3.6.4

0

630.7

1984

670.1

1.7

13.012.1

-5.1

.5

2.4-.2

.1

0

691.3

1985

745.1

1.9

14.413.5

3.2

.9

4.0-.2

.1

0

779.2

increases provided under the TaxEquity and Fiscal Responsibility Actof 1982 (TEFRA), the Highway Reve-nue Act of 1982, and the Social Secu-rity Amendments of 1983 raise re-ceipts $52.7 billion in 1985 and $45.7billion in 1984. Receipts are reducedan additional $2.4 billion in 1985 and$2.6 billion in 1984 by the Interestand Dividends Compliance Act of1983. This act repealed the withhold-ing of income taxes on interest anddividends as provided for by TEFRA.Proposed legislationincluding tax-ation of employer-paid health insur-ance premiums and the curtailmentof tax abuseraise receipts, on bal-ance, $7.9 billion in 1985 and $3.5 bil-lion in 1984.

Outlays increase $71.7 billionor8.4 percentin 1985, to $925.5 billion.Outlays in 1984 are $853.8 billion, up7.3 percent from 1983. Almost one-half of the increase is for the nationaldefense function and another one-fourth is for a newly created function-al category, social security and medi-care. Four other functionsnet inter-est, international affairs, agriculture,and healthmore than account forthe remainder of the increase. Allother functions decline on balance.The administration is again proposingvarious outlay reductions; these total$24.9 billion in 1985 and most requirelegislation.

Current services estimates

Current services estimates showwhat receipts and outlays would bewithout policy changes. They are nei-ther recommended amounts nor fore-casts, but rather are a base withwhich administration or congressionalproposals can be compared. The levelof outlays is that needed to maintainongoing Federal programs and activi-ties at 1984 levels in real terms. Themajor exception is for the military ac-tivities of DOD. For those activities,the 1985 estimate is from the admin-istration's request at the 1984 midses-sion review.

Unified budget receipts in 1985 are$7.9 billion higher than current serv-ices receipts, reflecting proposed taxincreases of $9.0 billion and tax re-ductions of $1.0 billion (table 3). Themajor proposed tax increases for 1985are the taxation of health insurancepremiums ($3.9 billion) and curtail-

ment of tax abuse ($3.2 billion). Theadministration proposes, effectiveJanuary 1, 1985, that employees paysocial security and income taxes onemployer-paid health insurance pre-

(text continued on p. 16)

Table 5.Relation of Federal Government Ex-penditures in the National Income and Prod-uct Accounts to the Unified Budget


Unified budget outlays

Less: Coverage differences:GeographicOff-budget Federal entities:

Federal Financing Bank....Strategic petroleum re-

serveOther

Other

Financial transactions:Net lendingOther

Net purchases of land:Outer Continental ShelfOther

Plus: Netting differences:Contributions to govern-

ment employees retire-ment funds

Other

Timing differences:National defense purchasesOther

Miscellaneous

Equals: Federal Government expendi-tures, NIPA

Fiscal year

1983

796.0

4.9

-10.4

-1.6-.3

.5

16.70

-7.4.1

12.29.4

1.0.1

.1

816.4

1984

853.8

5.1

-12.7

-2.2-1.3

.5

20.9.3

-5.1.1

13.012.1

.61.7

.1

875.5

1985

925.5

5.2

-10.2

-1.730.1

15.7.1

-4.0.1

14.413.5

-1.91 2

0

947.8

Table 6.Breakdown of Changes in FederalReceipts, NIPA Basis


Total receipts

Due to tax basesDue to tax changes l

EnactedProposed

Personal tax and nontax receiptsDue to tax basesDue to tax changes

EnactedProposed

Corporate profits tax accrualsDue to tax basesDue to tax changes

EnactedProposed

Indirect business tax and nontax ac- ....cruals

Due to tax basesDue to tax changes

EnactedProposed

Contributions for social insuranceDue to tax basesDue to tax changes

EnactedProposed

Change frompreceding fiscal year

1983

3.0

31.8-28.8-28.8

-15.125.5

-40.6406

3.04.7

-1.7-1.7

.4-5.5

5.95.9

14.77.17.67.6

1984

60.6

75.5-14.9

1863.7

6.837.330531 3

.8

20.523.4

-2.9-3.8

.9

5.9-.76.64.62.0

27.415.511.911.9

1985

87.9

84.73.2235.5

38.748.91021464.4

18.720.0

-1.3-2.0

.7

-1.2.7

-1.9.1

-2.0

31.715.116.614.22.4

1. Consists of all tax changes since fiscal year 1981.


12 SURVEY OF CURRENT BUSINESS February 1984

The Economic Recovery Tax Act of 1981.The EconomicRecovery Tax Act (ERTA) was enacted in August 1981; acomplete description of ERTA is in the August 1981SURVEY.

Major provisions are: An across-the-board reduction in individual income tax

rates over 33 months5 percent on October 1, 1981, 10percent on July 1, 1982, and 10 percent on July 1, 1983.These reductions compound to a reduction of 23 per-cent. Starting in 1985, income tax brackets, the zerobracket amount, and the personal exemption will be ad-justed for inflation as measured by the Consumer PriceIndex.

An accelerated cost recovery system that provides sub-stantially faster depreciation write-offs for business.The new system assigns depreciable lives of 3 years formost vehicles, 5 years for most equipment, 10 years forcertain public utility property, and 15 years for mostdepreciable real estate and some long-lived public util-ity property.

Incentives for persons who put savings in specified sav-ings accounts and repeal of the exclusion from grossincome of interest and dividends.

A substantial reduction in estate and gift taxes. An increase in the windfall profit tax credit for quali-

fied royalty recipients.

The Tax Equity and Fiscal Responsibility Act of 1982.The Tax Equity and Fiscal Responsibility Act [TEFRA]was enacted in September 1982; a complete discussion ofTEFRA is in the September 1982 SURVEY.

Major provisions are: Withholding of 10 percent on interest and dividend pay-

ments, effective July 1, 1983. (This provision was re-pealed by the Interest and Dividends Tax ComplianceAct of 1983, summarized later.)

Strengthening of compliance provisions, such as the re-porting of State and local government income tax re-funds.

Modification of the deductions for medical expenses andcasualty losses, generally effective January 1, 1983.

Repeal of modified coinsurance transactions, effectiveJanuary 1, 1982, and introduction of other changes thatreduce insurance industry taxes.

Repeal of safe-harbor leasing, effective January 1, 1984,and enactment of various other modifications and re-strictions for leasing that are generally effective July 1,1982.

Modification and tightening of regulations governinglong-term contract accounting, effective January 1, 1983for new contracts.

Temporary increases in airport and airway taxes, ciga-rette taxes, and telephone taxes.

An increase in the wage base and tax rate for unem-ployment taxes, effective January 1, 1983.

Extensions of hospital insurance coverage under medi-care to Federal employees, effective January 1, 1983.

Table 7.Selected Tax[Billions of

Line

1

2

34

56789

101112131415

16

17181920

2122232425

26

Direct impact on Federal sector deficit, NIPA basis 1

Personal tax and nontax receipts

Kconomic Recovery Tax ActWithheld

Rate reductions:October 1981July 1982July 1983

Other

Declarations and net settlementsRate reductionsMarried couples deductionAccelerated cost recovery system

Other

Estate and gift taxes

Tax Equity and Fiscal Responsibility ActWithheld

Interest and dividendsOther

Declarations and net settlementsInterest and dividendsIncreased enforcementDeduction for medical expensesOther

Estate and gift tax

Fiscal year

1983

-48.8

-74.1

78 1-54.6

-18.6-27.3-7.5

-1.2

-21.1-8.0-2.7-2.9-1.2-6.3

2 4

9.26.64.91.7

2.4-.21.6.1.9

.2

1984

-63.7

-104.6

-113.1-82.4

-20.0-29.3-31.5

-1.6

-27.0-8.9-5.4-4.3-.3

-8.1

37

15.525.022.42.6

-9.8-14.8

1.31.62.1

.3

1985

-60.5

-114.8

1332-95.8

-22.4-32.6-35.1

35-2.2

-32.5-10.6-5.4-5.7

-10.8

49

13.324.121.23.0

-11.1-17.4

1.31.53.5

.3

Calendar year

1981

7.2

-4.8

48-4.5

-4.4

-.1

-.3-.1

-Y

1982

-25.9

-41.0

-41.0-32.2

-18.0-13.4

-.8

-8.2-3.7_ 2

-L73

-2.3

6

1983

-52.2

-82.1

-86.8-62.9

-18.9-27.6-15.1

-1.3

-21.1-8.0-2.7-2.9

1 2-6.3

28

17.214.512.22.3

2.4-.21.6.1.9

.3

1984

-60.7

-106.9

-115.5-84.5

-20.5-30.0-32.3

-1.7

-27.0-8.9-5.4-4.3

3-8.1

40

13.422.920.22.7

-9.8-14.8

1.31.62.1

.3

1985

-63.9

-119.7

139.3-101.5

-23.1-33.6-36.2

632.3

-32.5-10.6-5.4-5.7

-10.8

53

13.724.521.53.0

-11.1-17.4

1.31.53.5

.3

1981

I

13.4

II

12.4

III

10.8

-.6

-.6

-.6-.2

-A

IV

-7.8

-18.6

18.6-18.0

-17.6

-.4

-.6-.2

-'.4"

See footnotes at end of table.


February 1984 SURVEY OF CURRENT BUSINESS 13

The Highway Revenue Act of 1982.This legislation wasenacted in January 1983. The major provision of this actwas to increase the existing excise tax on gasoline anddiesel fuel by 5 cents per gallon (from 4 cents to 9 cents)from April 1, 1983, through September 30, 1988.

Other provisions are: Repeal of taxes on automobile tires, small truck tires,

non-highway use tires, inner tubes, and tread rubber. Repeal of taxes on lubricating oil and retail sales of

lightweight trailers and trucks. An increase in taxes on heavy-duty trucks and trailers.

The Social Security Amendments of 1983. This legisla-tion was enacted in April 1983; a more complete discus-sion is in the February 1983 and April 1983 issues of theSURVEY.

Major provisions, effective January 1, 1984, are: Acceleration of previously scheduled rate increases. A 0.3-percentage-point reduction in the employee share

of the rate increase in 1984. An increase in the self-employed tax rate to 100 percent

of the combined employer-employee rate for social secu-rity and the combined medicare rate. Previously therate had been 75 percent and 50 percent, respectively,of the combined rates. A 2.7-percentage-point reductionwas, in effect, provided in 1984; a reduction of 2.3 per-centage points was provided in 1985 and of 2.0 percent-age points in 1986-89.

Mandatory coverage of new Federal civilian employeesand employees of nonprofit organizations. ParticipatingState and local governments will no longer be allowedto withdraw.

Taxation of 50 percent of social security benefits whenincome exceeds $25,000 for single taxpayers and $32,000for married couples. Previously, these benefits had beenexempt from Federal income tax.

Changes, NIPA Basisdollars]

The Interest and Dividends Tax Compliance Act of1983. This legislation was enacted in August 1983. Themajor provision of this act was repeal of the 10-percent in-terest and dividend withholding provision of TEFRA. Thisact replaced the 10-percent withholding provision with a"backup withholding" of 20 percent for recipients who failto provide accurate taxpayer identification information tospecified payers of interest and dividends. Other provi-sions provided for tax incentives on expenses incurred inattending business conventions in qualifying CaribbeanBasin countries.

The Railroad Retirement Revenue Act of 1983. Thislegislation was enacted in August 1983. This legislationwas necessary, as were the social security amendments, toprovide for the long-term financial soundness of the em-ployee retirement system.

Major provisions are: An increase in railroad retirement payroll taxes for em-

ployers and employees. An increase in railroad unemployment insurance taxes

effective January 1, 1984. Taxation of retirement benefits in excess of contribu-

tions.

Calendar year


I

-7.7

-23.5

-23.5-18.3

-17.7

-.6

-5.1-1.6-.2

-1.4

-1.9

^

II

-11.8

-26.5

-26.5-18.7

-18.0

-.7

-7.7-3.0-.2

-1.6-.8

-2.1

-.1

III

-40.5

-55.0

-55.0-45.7

-18.1-26.7

-.9

-9.1-4.4-.2

-1.8.4

-2.3

-.2

IV

-43.6

-59.0

-59.0-46.1

-18.2-26.9

-1.0

-10.9-5.8-.2

-2.0

-2.9

-2.0

1983

I

-35.1

-64.3

-68.9-46.6

-18.4-27.1

-1.1

-20.0-7.5-2.7-2.4-1.7-5.7

-2.3

4.62.1

2.1

2.2

1.5

.7

.3

II

-35.2

-67.7

-72.2-47.3

-18.7-27.4

-1.2

-22.3-7.8-2.7-2.7-3.0-6.1

-2.6

5.02.2

2.2

2.5

1.6

.9

.3

III

-67.8

-97.0

-101.7-78.3

-19.1-27.8-30.0

-1.4

-20.6-8.2-2.7-3.1

1-6.5

-2.8

24.521.919.52.4

2.3-.41.7.1.9

.3

IV

-70.7

-99.4

-104.4-794

-19.4-28.1-30.4

-1.5

-21.5-8.5-2.7-3.4

-6.9

-3.5

34.731.829.32.5

2.6-.41.6.3

1.1

.3

1984

I

-62.4

-103.1

-110.4-81.2

-19.7-28.9-31.1

-1.5

-25.6-8.6-5.4-3.7-.5

-7.4

-3.6

14.322.520.02.5

-8.5-13.3

1.31.61.9

.3

II

-60.2

-107.5-114.0-83.3

-20.2-29.6-31.9

-1.6

-26.9-8.7-5.4-4.1-.8

-7.9

-3.8

scb_021984

Documents

revisions infourthquarter

piihtie business

percent increase

thefourth quarter

thethird quarter

upward revision inreal

inventory investment

manufacturing inventories