IV

104TH CONGRESS

2D SESSION H. CON. RES. 170

Providing a sense of Congress that the Congressional Budget Office and

the Joint Committee on Taxation should 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 HOUSE OF REPRESENTATIVES

MAY 2, 1996

Mr. CAMPBELL (for himself, Mr. ARMEY, Mr. SAXTON, Mr. SANFORD, Mr.

THORNBERRY, Mr. EWING, Mr. MANZULLO, Mr. SHAYS, Mr. HORN, and

Mr. CUNNINGHAM) submitted the following concurrent resolution; which

was referred to the Committee on the Budget, and in addition to the

Committee on Ways and Means, 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

CONCURRENT RESOLUTION

Providing a sense of Congress that the Congressional Budget

Office and the Joint Committee on Taxation should use

dynamic economic modeling in addition to static economic modeling in the preparation of budgetary estimates of proposed changes in Federal revenue law.

1 Resolved by the House of Representatives (the Senate

2 concurring),

3 SECTION 1. SENSE OF CONGRESS.

4 It is the sense of Congress that to ensure that Con5 gress is presented with reliable information from the Con-
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•HCON 170 IH

1 gressional Budget Office and the Joint Committee on Tax2 ation as to the dynamic macroeconomic feedback effects

3 to changes in Federal law and the probable behavioral re4 sponses of taxpayers, businesses, and other parties to such

5 changes. Specifically, the Congress intends that, while not

6 excluding any other estimating method, dynamic estimat7 ing techniques should also be used in estimating the fiscal

8 impact of proposals to change those laws, to the extent

9 that data are available to permit estimates to be made in

10 that manner.

11 SEC. 2. ESTIMATES OF THE JOINT COMMITTEE ON TAX12 ATION.

13 In addition to any other estimates it may prepare of

14 any proposed change in Federal revenue law, a fiscal esti15 mate should be prepared by the Joint Committee on Tax16 ation of each such proposed change on the basis of as17 sumptions that estimate the probable behavioral responses

18 of personal and business taxpayers and other relevant en19 tities to that proposed change and the dynamic macro20 economic feedback effects of that proposed change, and

21 it should include a statement identifying those assump22 tions. The preceding sentence should apply only to a pro23 posed change that the Joint Committee on Taxation deter24 mines, pursuant to a static fiscal estimate, has a fiscal

25 impact in excess of $100,000,000 in any fiscal year.
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•HCON 170 IH

1 SEC. 3. ESTIMATES OF THE CONGRESSIONAL BUDGET OF2 FICE.

3 In addition to any other estimates it may prepare of

4 any proposed change in Federal revenue law, a fiscal esti5 mate should be prepared by the Congressional Budget Of6 fice of each such proposed change on the basis of assump7 tions that estimate the probable behavioral responses of

8 personal and business taxpayers and other relevant enti9 ties to that proposed change and the dynamic macro10 economic feedback effects of that proposed change, and

11 it should include a statement identifying those assump12 tions. The preceding sentence should apply only to a pro13 posed change that the Congressional Budget Office deter14 mines, pursuant to a static fiscal estimate, has a fiscal

15 impact in excess of $100,000,000 in any fiscal year.

16 SEC. 4. DISCLOSURE OF ASSUMPTIONS.

17 Any report to Congress or the public made by the

18 Joint Committee on Taxation or the Congressional Budget

19 Office that contains an estimate made under this concur20 rent resolution of the effect that any legislation will have

21 on revenues shall rely upon Congressional Budget Office

22 data and shall be accompanied by a written statement

23 fully disclosing the economic, technical, and behavioral as24 sumptions that were made in producing that estimate.
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•HCON 170 IH

1 SEC. 5. CONTRACTING AUTHORITY.

2 In performing the tasks specified in sections 2 and

3 3, the Joint Committee on Taxation and the Congressional

4 Budget Office may, subject to the availability of appro5 priations, enter into contracts with universities or other

6 private or public organizations to perform such esti7 mations or to develop protocols and models for making

8 such estimates.

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