[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 675 Referral Instructions Senate (RIS)]
108th CONGRESS
1st Session
S. 675
To require the Congressional Budget Office and the Joint Committee on
Taxation to use dynamic economic modeling in addition to static
economic modeling in the preparation of budgetary estimates of proposed
changes in Federal revenue law.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2003
Mr. Ensign (for himself, Mr. Sessions, Mr. Crapo, and Mr. Kyl)
introduced the following bill; which was read twice and referred
jointly pursuant to the order of August 4, 1977, to the Committees on
the Budget and Governmental Affairs, with instructions that if one
committee reports, the other committee have thirty days to report or be
discharged
_______________________________________________________________________
A BILL
To require the Congressional Budget Office and the Joint Committee on
Taxation to use dynamic economic modeling in addition to static
economic modeling in the preparation of budgetary estimates of proposed
changes in Federal revenue law.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SENSE OF CONGRESS.
It is the sense of Congress that it is necessary to ensure that
Congress is presented with reliable information from the Congressional
Budget Office and the Joint Committee on Taxation as to the dynamic
macroeconomic feedback effects to changes in Federal law and the
probable behavioral responses of taxpayers, businesses, and other
parties to such changes. Specifically, the Congress intends that, while
not excluding any other estimating method, dynamic estimating
techniques shall also be used in estimating the fiscal impact of
proposals to change Federal laws, to the extent that data are available
to permit estimates to be made in such a manner.
SEC. 2. ESTIMATES OF THE JOINT COMMITTEE ON
TAXATION.
In addition to any other estimates it may prepare of any proposed
change in Federal revenue law, a fiscal estimate shall be prepared by
the Joint Committee on Taxation of each such proposed change on the
basis of assumptions that estimate the probable behavioral responses of
personal and business taxpayers and other relevant entities to that
proposed change and the dynamic macroeconomic feedback effects of that
proposed change. The preceding sentence shall apply only to a proposed
change that the Joint Committee on Taxation determines, pursuant to a
static fiscal estimate, has a fiscal impact in excess of $250,000,000
in any fiscal year.
SEC. 3. ESTIMATES OF THE CONGRESSIONAL BUDGET
OFFICE.
In addition to any other estimates it may prepare of any proposed
change in Federal revenue law, a fiscal estimate shall be prepared by
the Congressional Budget Office of each such proposed change on the
basis of assumptions that estimate the probable behavioral responses of
personal and business taxpayers and other relevant entities to that
proposed change and the dynamic macroeconomic feedback effects of that
proposed change. The preceding sentence shall apply only to a proposed
change that the Congressional Budget Office determines, pursuant to a
static fiscal estimate, has a fiscal impact in excess of $250,000,000
in any fiscal year.
SEC. 4. DISCLOSURE OF ASSUMPTIONS.
Any report to Congress or the public made by the Joint Committee on
Taxation or the Congressional Budget Office that contains an estimate
made under this Act of the effect that any legislation will have on
revenues shall be accompanied by--
(1) a written statement fully disclosing the economic,
technical, and behavioral assumptions that were made in
producing that estimate, and
(2) the static fiscal estimate made with respect to the
same legislation and a written statement of the economic,
technical, and behavioral assumptions that were made in
producing that estimate.
SEC. 5. CONTRACTING AUTHORITY.
In performing the tasks specified in this Act, the Joint Committee
on Taxation and the Congressional Budget Office may, subject to the
availability of appropriations, enter into contracts with universities
or other private or public organizations to perform such estimations or
to develop protocols and models for making such estimates.
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