INFORM Act

Summary: Intergenerational Financial Obligations Reform Act or INFORM Act - Amends the Congressional Budget Act of 1974 to require the Congressional Budget Office (CBO) to provide certain information on any legislation or resolution considered in either chamber which would impact revenues or mandatory spending by greater than 0.5% of gross domestic product (GDP) over the following 10-fiscal-year period, and upon request by the Chairmen or Ranking Members of the congressional budget committees. Requires such information to comprise:   a fiscal gap and generational accounting analysis, including any change in the analysis relative to the baseline; and  the federal deficit, at current spending levels, in the fiscal year that is 75 years after the fiscal year in which the legislation is being considered, as well as the stock of the debt in that 75th year.  Requires: (1) CBO to produce an annual fiscal gap and generational accounting analysis within its annual &quot;Long-Term Budget Outlook&quot; and post it on the CBO public website, and (2) the Comptroller General to produce a separate similar analysis within its annual &quot;Long-Term Fiscal Outlook&quot; and post it on the General Accountability Office (GAO) public website. Requires the President's budget submission to Congress to include:   a fiscal gap and generational accounting analysis of the full budget proposal;  the same kind of analysis of specific policy changes that would impact revenues or mandatory spending by greater than 0.5% of GDP over the following 10-fiscal year period; and  the federal deficit, at current spending levels, in the fiscal year that is 75 years after the fiscal year in which the legislation is being considered, as well as the stock of the debt in that 75th year. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intergenerational Financial 
Obligations Reform Act'' or the ``INFORM Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Fiscal gap.--The term ``fiscal gap'' means an economic 
        analysis that--
                    (A) calculates the difference between the present 
                value of all projected future Federal spending, 
                including interest and principal payments on the 
                initial outstanding debt, and the present value of all 
                projected future Federal revenues, over an infinite 
                time horizon;
                    (B) calculates the permanent Federal revenue 
                increases and spending reductions and identifies the 
                combination of fiscal policy options starting in the 
                budget year, and 5, 10, 15, and 25 years after the 
                budget year, needed to eliminate the infinite horizon 
                fiscal gap calculated as of the budget year; and
                    (C) calculates the increases in the levels of 
                annual rates of economic growth factors, including 
                technological change, labor productivity, and capital 
                deepening, starting in the budget year, and 5, 10, 15, 
                and 25 years after the budget year, needed to eliminate 
                the infinite horizon fiscal gap calculated as of the 
                budget year.
            (2) Generation.--The term ``generation'' means a 1-year age 
        cohort.
            (3) Generational accounting.--The term ``generational 
        accounting'' means an economic analysis that calculates--
                    (A) the projected present value lifetime net 
                Federal tax burden facing each living adult generation 
                over 18 years of age; and
                    (B) the present value lifetime net Federal tax 
                burdens facing each current generation of children 18 
                years of age and under, as well as each future 
                generation, assuming--
                            (i) the sum of all present value lifetime 
                        net Federal tax burdens facing each current 
                        generation of children 18 years of age and 
                        under, as well as each future generation, 
                        covers the present value of future 
                        discretionary spending, including interest and 
                        principal payments on the initial outstanding 
                        debt, less the sum of all present value 
                        lifetime net Federal tax burdens facing living 
                        adult generations over 18 years of age; and
                            (ii) the lifetime net Federal tax burden of 
                        generations 18 years of age and under, as well 
                        as future generations, increases with year of 
                        birth at the projected growth rate of labor 
                        productivity.
            (4) Net federal tax burden.--The term ``net Federal tax 
        burden'' means the difference between Federal taxes paid and 
        transfer payments received.

SEC. 3. THE CONGRESSIONAL BUDGET OFFICE REPORT.

    Section 202(e) of the Congressional Budget Act of 1974 is amended 
by inserting at the end the following:
            ``(4)(A) For any legislation or resolution considered in 
        the Senate or the House of Representatives that would impact 
        revenues or mandatory spending by greater than 0.5 percent of 
        gross domestic product over the following 10-fiscal year period 
        and upon request relating to such legislation or resolution by 
        the Chairmen or Ranking Members of the Committees on the Budget 
        of the House of Representatives or the Senate, the 
        Congressional Budget Office shall be required to provide, with 
        respect to such legislation or resolution--
                    ``(i) a fiscal gap and generational accounting 
                analysis, including the change in the fiscal gap and 
                generational accounting analysis relative to the 
                baseline; and
                    ``(ii) the Federal deficit, at current spending 
                levels, in the fiscal year that is 75 years and the 
                stock of the debt in the 75th year after the fiscal 
                year in which the legislation is being considered.
            ``(B) In this paragraph--
                    ``(i) the term `fiscal gap' means an economic 
                analysis that--
                            ``(I) calculates the difference between the 
                        present value of all projected future Federal 
                        spending, including interest and principal 
                        payments on the initial outstanding debt, and 
                        the present value of all projected future 
                        Federal revenues, over an infinite time 
                        horizon;
                            ``(II) calculates the permanent Federal 
                        revenue increases and spending reductions and 
                        identifies the combination of fiscal policy 
                        options starting in the budget year, and 5, 10, 
                        15, and 25 years after the budget year, needed 
                        to eliminate the infinite horizon fiscal gap 
                        calculated as of the budget year; and
                            ``(III) calculates the increases in the 
                        levels of annual rates of economic growth 
                        factors, including technological change, labor 
                        productivity, and capital deepening, starting 
                        in the budget year, and 5, 10, 15, and 25 years 
                        after the budget year, needed to eliminate the 
                        infinite horizon fiscal gap calculated as of 
                        the budget year;
                    ``(ii) the term `generation' means a 1-year age 
                cohort;
                    ``(iii) the term `generational accounting' means an 
                economic analysis that calculates--
                            ``(I) the projected present value lifetime 
                        net Federal tax burden facing each living adult 
                        generation over 18 years of age; and
                            ``(II) the present value lifetime net 
                        Federal tax burdens facing each current 
                        generation of children 18 years of age and 
                        under, as well as each future generation, 
                        assuming--
                                    ``(aa) the sum of all present value 
                                lifetime net Federal tax burdens facing 
                                each current generation of children 18 
                                years of age and under, as well as each 
                                future generation, covers the present 
                                value of future discretionary spending, 
                                including interest and principal 
                                payments on the initial outstanding 
                                debt, less the sum of all present value 
                                lifetime net Federal tax burdens facing 
                                living adult generations over 18 years 
                                of age; and
                                    ``(bb) the lifetime net Federal tax 
                                burden of generations 18 years of age 
                                and under, as well as future 
                                generations, increases with year of 
                                birth at the projected growth rate of 
                                labor productivity; and
                    ``(iv) the term `net Federal tax burden' means the 
                difference between Federal taxes paid and transfer 
                payments received.''.

SEC. 4. CBO ANNUAL REPORT.

    (a) In General.--The Congressional Budget Office shall produce an 
annual fiscal gap and generational accounting analysis within its 
annual ``Long-Term Budget Outlook''.
    (b) Public Report.--The Director of the Congressional Budget Office 
shall post the report described in subsection (a) on the Congressional 
Budget Office public website.

SEC. 5. GAO ANNUAL REPORT.

    (a) In General.--The Comptroller General shall produce an annual 
fiscal gap and generational accounting analysis within its annual 
``Long-Term Fiscal Outlook''.
    (b) Public Report.--The Comptroller General shall post the report 
described in subsection (a) on the General Accountability Office public 
website.

SEC. 6. THE PRESIDENT'S BUDGET.

    Section 1105 of title 31, United States Code, is amended--
            (1) in subsection (a), by--
                    (A) redesignating paragraph (37) following 
                paragraph (38) as paragraph (39); and
                    (B) adding at the end the following:
            ``(40) an analysis including--
                    ``(A) a fiscal gap and generational accounting 
                analysis of the full budget proposal;
                    ``(B) a fiscal gap and generational accounting 
                analysis of specific policy changes that would impact 
                revenues or mandatory spending by greater than 0.5 
                percent of gross domestic product over the following 
                10-fiscal year period; and
                    ``(C) the Federal deficit, at current spending 
                levels, in the fiscal year that is 75 years and the 
                stock of the debt in the 75th year after the fiscal 
                year in which the policy is being considered.''; and
            (2) by inserting at the end the following:
    ``(i) For purposes of subsection (a)(40)--
            ``(1) the term `fiscal gap' means an economic analysis 
        that--
                    ``(A) calculates the difference between the present 
                value of all projected future Federal spending, 
                including interest and principal payments on the 
                initial outstanding debt, and the present value of all 
                projected future Federal revenues, over an infinite 
                time horizon;
                    ``(B) calculates the permanent Federal revenue 
                increases and spending reductions and identifies the 
                combination of fiscal policy options starting in the 
                budget year, and 5, 10, 15, and 25 years after the 
                budget year, needed to eliminate the infinite horizon 
                fiscal gap calculated as of the budget year; and
                    ``(C) the increases in the levels of annual rates 
                of economic growth factors, including technological 
                change, labor productivity, and capital deepening, 
                starting in the budget year, and 5, 10, 15, and 25 
                years after the budget year, needed to eliminate the 
                infinite horizon fiscal gap calculated as of the budget 
                year;
            ``(2) the term `generation' means a 1-year age cohort;
            ``(3) the term `generational accounting' means an economic 
        analysis that calculates--
                    ``(A) the projected present value lifetime net 
                Federal tax burden facing each living adult generation 
                over 18 years of age; and
                    ``(B) the present value lifetime net Federal tax 
                burdens facing each current generation of children 18 
                years of age and under, as well as each future 
                generation, assuming--
                            ``(i) the sum of all present value lifetime 
                        net Federal tax burdens facing each current 
                        generation of children 18 years of age and 
                        under, as well as each future generation, 
                        covers the present value of future 
                        discretionary spending, including interest and 
                        principal payments on the initial outstanding 
                        debt, less the sum of all present value 
                        lifetime net Federal tax burdens facing living 
                        adult generations over 18 years of age; and
                            ``(ii) the lifetime net Federal tax burden 
                        of generations 18 years of age and under, as 
                        well as future generations, increases with year 
                        of birth at the projected growth rate of labor 
                        productivity; and
            ``(4) the term `net Federal tax burden' means the 
        difference between Federal taxes paid and transfer payments 
        received.''.