What's wrong with this picture? When this provision was "scored" for its revenue-raising abilities last April, numbers crunchers at the Congressional Budget Office assumed that the relevant T-bill rate would be 4.3% in 1995 and 4.6% in years beyond. But by the time the bill was passed in November, it was clear that these interest projections were way off. Currently, six-month T-bills pay 6.81%, which, if the change were in effect today, would obligate the Treasury to pay 5.79% rather than 4% on savings bonds cashed early.
Overall, this "revenue raiser" could cost the government $72 million each year, or $358 million over five years.