IIB 

112TH CONGRESS 

2D SESSION H. R. 3582 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 6, 2012 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Pro-Growth Budgeting 

3 Act of 2012’’. 

4 SEC. 2. MACROECONOMIC IMPACT ANALYSES. 

5 (a) IN GENERAL.—Part A of title IV of the Congres6 sional Budget Act of 1974 is amended by adding at the 

7 end the following new section: 

8 ‘‘MACROECONOMIC IMPACT ANALYSIS OF MAJOR

9 LEGISLATION

10 ‘‘SEC. 407. (a) CONGRESSIONAL BUDGET OFFICE.— 

11 The Congressional Budget Office shall, to the extent prac12 ticable, prepare for each major bill or resolution reported 

13 by any committee of the House of Representatives or the 

14 Senate (except the Committee on Appropriations of each 

15 House), as a supplement to estimates prepared under sec16 tion 402, a macroeconomic impact analysis of the budg17 etary effects of such bill or resolution for the ten fiscal18 year period beginning with the first fiscal year for which 

19 an estimate was prepared under section 402 and each of 

20 the next three ten fiscal-year periods. Such estimate shall 

21 be predicated upon the supplemental projection described 

22 in section 202(e)(4). The Director shall submit to such 

23 committee the macroeconomic impact analysis, together 

24 with the basis for the analysis. As a supplement to esti25 mates prepared under section 402, all such information 


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1 so submitted shall be included in the report accompanying 

2 such bill or resolution. 

3 ‘‘(b) ECONOMIC IMPACT.—The analysis prepared 

4 under subsection (a) shall describe the potential economic 

5 impact of the applicable major bill or resolution on major 

6 economic variables, including real gross domestic product, 

7 business investment, the capital stock, employment, inter8 est rates, and labor supply. The analysis shall also de9 scribe the potential fiscal effects of the bill or resolution, 

10 including any estimates of revenue increases or decreases 

11 resulting from changes in gross domestic product. To the 

12 extent practicable, the analysis should use a variety of eco13 nomic models in order to reflect the full range of possible 

14 economic outcomes resulting from the bill or resolution. 

15 The analysis (or a technical appendix to the analysis) shall 

16 specify the economic and econometric models used, sources 

17 of data, relevant data transformations, and shall include 

18 such explanation as is necessary to make the models com19 prehensible to academic and public policy analysts. 

20 ‘‘(c) DEFINITIONS.—As used in this section— 

21 ‘‘(1) the term ‘macroeconomic impact analysis’ 

22 means— 

23 ‘‘(A) an estimate of the changes in eco24 nomic output, employment, interest rates, capVerDate Mar 15 2010 01:46 Feb 07, 2012 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3582.RFS H3582

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1 ital stock, and tax revenues expected to result 

2 from enactment of the proposal; 

3 ‘‘(B) an estimate of revenue feedback ex4 pected to result from enactment of the proposal; 

5 and 

6 ‘‘(C) a statement identifying the critical 

7 assumptions and the source of data underlying 

8 that estimate; 

9 ‘‘(2) the term ‘major bill or resolution’ means 

10 any bill or resolution if the gross budgetary effects 

11 of such bill or resolution for any fiscal year in the 

12 period for which an estimate is prepared under sec13 tion 402 is estimated to be greater than .25 percent 

14 of the current projected gross domestic product of 

15 the United States for any such fiscal year; 

16 ‘‘(3) the term ‘budgetary effect’, when applied 

17 to a major bill or resolution, means the changes in 

18 revenues, outlays, deficits, and debt resulting from 

19 that measure; and 

20 ‘‘(4) the term ‘revenue feedback’ means changes 

21 in revenue resulting from changes in economic 

22 growth as the result of the enactment of any major 

23 bill or resolution.’’. 

24 (b) CONFORMING AMENDMENT.—The table of con25 tents set forth in section 1(b) of the Congressional Budget 


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1 Act of 1974 is amended by inserting after the item relat2 ing to section 406 the following new item: 

‘‘Sec. 407. Macroeconomic impact analysis of major legislation.’’. 

3 SEC. 3. ADDITIONAL CBO REPORT TO BUDGET COMMIT4 TEES. 

5 Section 202(e) of the Congressional Budget Act of 

6 1974 is amended by adding at the end the following new 

7 paragraphs: 

8 ‘‘(4)(A) After the President’s budget submis9 sion under section 1105(a) of title 31, United States 

10 Code, in addition to the baseline projections, the Di11 rector shall submit to the Committees on the Budget 

12 of the House of Representatives and the Senate a 

13 supplemental projection assuming extension of cur14 rent tax policy for the fiscal year commencing on 

15 October 1 of that year with a supplemental projec16 tion for the 10 fiscal-year period beginning with that 

17 fiscal year, assuming the extension of current tax 

18 policy. 

19 ‘‘(B) For the purposes of this paragraph, the 

20 term ‘current tax policy’ means the tax policy in 

21 statute as of December 31 of the current year as22 suming— 

23 ‘‘(i) the budgetary effects of measures ex24 tending the Economic Growth and Tax Relief 

25 Reconciliation Act of 2001; 


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1 ‘‘(ii) the budgetary effects of measures ex2 tending the Jobs and Growth Tax Relief Rec3 onciliation Act of 2003; 

4 ‘‘(iii) the continued application of the alter5 native minimum tax as in effect for taxable 

6 years beginning in 2011 pursuant to title II of 

7 the Tax Relief, Unemployment Insurance Reau8 thorization, and Job Creation Act of 2010, as9 suming that for taxable years beginning after 

10 2011 the exemption amount shall equal— 

11 ‘‘(I) the exemption amount for taxable 

12 years beginning in 2011, as indexed for in13 flation; or 

14 ‘‘(II) if a subsequent law modifies the 

15 exemption amount for later taxable years, 

16 the modified exemption amount, as indexed 

17 for inflation; and 

18 ‘‘(iv) the budgetary effects of extending the 

19 estate, gift, and generation-skipping transfer 

20 tax provisions of title III of the Tax Relief, Un21 employment Insurance Reauthorization, and 

22 Job Creation Act of 2010. 

23 ‘‘(5) On or before July 1 of each year, the Di24 rector shall submit to the Committees on the Budget 

25 of the House of Representatives and the Senate, the 


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1 Long-Term Budget Outlook for the fiscal year com2 mencing on October 1 of that year and at least the 

3 ensuing 40 fiscal years.’’. 

Passed the House of Representatives February 2, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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