[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1874 Referred in Senate (RFS)]
113th CONGRESS
2d Session
H. R. 1874
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 7, 2014
Received; read twice and referred to the Committee on the Budget
_______________________________________________________________________
AN ACT
To amend the Congressional Budget Act of 1974 to provide for
macroeconomic analysis of the impact of legislation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pro-Growth Budgeting Act of 2014''.
SEC. 2. MACROECONOMIC IMPACT ANALYSES.
(a) In General.--Part A of title IV of the Congressional Budget Act
of 1974 is amended by adding at the end the following new section:
``macroeconomic impact analysis of major legislation
``Sec. 407. (a) Congressional Budget Office.--The Congressional
Budget Office shall, to the extent practicable, prepare for each major
bill or resolution reported by any committee of the House of
Representatives or the Senate (except the Committee on Appropriations
of each House), as a supplement to estimates prepared under section
402, a macroeconomic impact analysis of the budgetary effects of such
bill or resolution for the ten fiscal-year period beginning with the
first fiscal year for which an estimate was prepared under section 402
and each of the next three ten fiscal-year periods. The Director shall
submit to such committee the macroeconomic impact analysis, together
with the basis for the analysis. As a supplement to estimates prepared
under section 402, all such information so submitted shall be included
in the report accompanying such bill or resolution.
``(b) Economic Impact.--The analysis prepared under subsection (a)
shall describe the potential economic impact of the applicable major
bill or resolution on major economic variables, including real gross
domestic product, business investment, the capital stock, employment,
interest rates, and labor supply. The analysis shall also describe the
potential fiscal effects of the bill or resolution, including any
estimates of revenue increases or decreases resulting from changes in
gross domestic product. To the extent practicable, the analysis should
use a variety of economic models in order to reflect the full range of
possible economic outcomes resulting from the bill or resolution. The
analysis (or a technical appendix to the analysis) shall specify the
economic and econometric models used, sources of data, relevant data
transformations, and shall include such explanation as is necessary to
make the models comprehensible to academic and public policy analysts.
``(c) Reporting on Accuracy of Macroeconomic Impact Analyses.--Upon
completion of the fifth fiscal year beginning after the date of
enactment of any major bill or joint resolution for which the
Congressional Budget Office prepared an analysis under subsection (a),
the Congressional Budget Office shall report on the accuracy of the
original macroeconomic impact analysis of such enacted bill or joint
resolution and submit these reports to the Committees on the Budget of
the House of Representatives and the Senate.
``(d) Definitions.--As used in this section--
``(1) the term `macroeconomic impact analysis' means--
``(A) an estimate of the changes in economic
output, employment, interest rates, capital stock, and
tax revenues expected to result from enactment of the
proposal;
``(B) an estimate of revenue feedback expected to
result from enactment of the proposal; and
``(C) a statement identifying the critical
assumptions and the source of data underlying that
estimate;
``(2) the term `major bill or resolution' means any bill or
resolution if the gross budgetary effects of such bill or
resolution for any fiscal year in the period for which an
estimate is prepared under section 402 is estimated to be
greater than .25 percent of the current projected gross
domestic product of the United States for any such fiscal year;
``(3) the term `budgetary effect', when applied to a major
bill or resolution, means the changes in revenues, outlays,
deficits, and debt resulting from that measure; and
``(4) the term `revenue feedback' means changes in revenue
resulting from changes in economic growth as the result of the
enactment of any major bill or resolution.
``(e) Legislation With Revenue Provisions.--The macroeconomic
analysis described in subsection (c) shall rely on macroeconomic
analysis prepared by the Joint Committee on Taxation for any provisions
of such legislation that are described in section 201(f). For
legislation consisting solely of provisions described in section
201(f), the macroeconomic analysis described in subsection (c) shall be
prepared by the Joint Committee on Taxation.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by inserting after the item relating to section 406 the
following new item:
``Sec. 407. Macroeconomic impact analysis of major legislation.''.
Passed the House of Representatives April 4, 2014.
Attest:
KAREN L. HAAS,
Clerk.