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H.R. 1874 (113th): Pro-Growth Budgeting Act of 2014


The text of the bill below is as of May 8, 2013 (Introduced).


I

113th CONGRESS

1st Session

H. R. 1874

IN THE HOUSE OF REPRESENTATIVES

May 8, 2013

(for himself, Mr. Ryan of Wisconsin, Mrs. Black, Mr. Chaffetz, Mr. Collins of Georgia, Mr. Cotton, Mr. Garrett, Mr. Gosar, Mr. Graves of Georgia, Mr. Hensarling, Mr. Johnson of Ohio, Mr. Marchant, Mr. Mulvaney, Mr. Radel, Mr. Reed, Mr. Ribble, Mr. Ross, Mr. Scalise, Mr. Austin Scott of Georgia, Mr. Westmoreland, Mr. Wilson of South Carolina, Mr. Woodall, Mr. Jordan, Mr. Barr, Mr. Terry, Mr. Franks of Arizona, Mr. Bishop of Utah, Mr. Pittenger, Mr. Yoder, and Mr. Fortenberry) introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Congressional Budget Act of 1974 to provide for macroeconomic analysis of the impact of legislation.

1.

Short title

This Act may be cited as the Pro-Growth Budgeting Act of 2013 .

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:

407.

Macroeconomic impact analysis of major legislation

(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. Such estimate shall be predicated upon the supplemental projection described in section 202(e)(4). 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)

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.

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(b)

Conforming amendment

The table of contents set forth in section 1(b) of the Congressional Budget 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.

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