IIB 

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. 

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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HR 1874 RFS

1 SECTION 1. SHORT TITLE. 

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

3 Act of 2014’’. 

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. The Director shall 

21 submit to such committee the macroeconomic impact anal22 ysis, together with the basis for the analysis. As a supple23 ment to estimates prepared under section 402, all such 

24 information so submitted shall be included in the report 

25 accompanying such bill or resolution. 


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

2 under subsection (a) shall describe the potential economic 

3 impact of the applicable major bill or resolution on major 

4 economic variables, including real gross domestic product, 

5 business investment, the capital stock, employment, inter6 est rates, and labor supply. The analysis shall also de7 scribe the potential fiscal effects of the bill or resolution, 

8 including any estimates of revenue increases or decreases 

9 resulting from changes in gross domestic product. To the 

10 extent practicable, the analysis should use a variety of eco11 nomic models in order to reflect the full range of possible 

12 economic outcomes resulting from the bill or resolution. 

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

14 specify the economic and econometric models used, sources 

15 of data, relevant data transformations, and shall include 

16 such explanation as is necessary to make the models com17 prehensible to academic and public policy analysts. 

18 ‘‘(c) REPORTING ON ACCURACY OF MACROECONOMIC

19 IMPACT ANALYSES.—Upon completion of the fifth fiscal 

20 year beginning after the date of enactment of any major 

21 bill or joint resolution for which the Congressional Budget 

22 Office prepared an analysis under subsection (a), the Con23 gressional Budget Office shall report on the accuracy of 

24 the original macroeconomic impact analysis of such en25 acted bill or joint resolution and submit these reports to 


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1 the Committees on the Budget of the House of Represent2 atives and the Senate. 

3 ‘‘(d) DEFINITIONS.—As used in this section— 

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

5 means— 

6 ‘‘(A) an estimate of the changes in eco7 nomic output, employment, interest rates, cap8 ital stock, and tax revenues expected to result 

9 from enactment of the proposal; 

10 ‘‘(B) an estimate of revenue feedback ex11 pected to result from enactment of the proposal; 

12 and 

13 ‘‘(C) a statement identifying the critical 

14 assumptions and the source of data underlying 

15 that estimate; 

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

17 any bill or resolution if the gross budgetary effects 

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

19 period for which an estimate is prepared under sec20 tion 402 is estimated to be greater than .25 percent 

21 of the current projected gross domestic product of 

22 the United States for any such fiscal year; 

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

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


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1 revenues, outlays, deficits, and debt resulting from 

2 that measure; and 

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

4 in revenue resulting from changes in economic 

5 growth as the result of the enactment of any major 

6 bill or resolution. 

7 ‘‘(e) LEGISLATION WITH REVENUE PROVISIONS.— 

8 The macroeconomic analysis described in subsection (c) 

9 shall rely on macroeconomic analysis prepared by the 

10 Joint Committee on Taxation for any provisions of such 

11 legislation that are described in section 201(f). For legisla12 tion consisting solely of provisions described in section 

13 201(f), the macroeconomic analysis described in sub14 section (c) shall be prepared by the Joint Committee on 

15 Taxation.’’. 

16 (b) CONFORMING AMENDMENT.—The table of con17 tents set forth in section 1(b) of the Congressional Budget 

18 and Impoundment Control Act of 1974 is amended by in19 serting after the item relating to section 406 the following 

20 new item: 

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

Passed the House of Representatives April 4, 2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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