I 

113TH CONGRESS 

1ST SESSION H. R. 2967 

To provide for fiscal gap and generational accounting analysis in the legislative process, the President’s budget, and annual long-term fiscal outlook 

reports. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2013 

Mr. SCHOCK (for himself and Mr. COOPER) introduced the following bill; 

which was referred to the Committee on the Budget 

A BILL 

To provide for fiscal gap and generational accounting analysis in the legislative process, the President’s budget, 

and annual long-term fiscal outlook reports. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Intergenerational Fi5 nancial Obligations Reform Act’’ or the ‘‘INFORM Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) FISCAL GAP.—The term ‘‘fiscal gap’’ means 

9 an economic analysis that— 


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1 (A) calculates the difference between the 

2 present value of all projected future Federal 

3 spending, including interest and principal pay4 ments on the initial outstanding debt, and the 

5 present value of all projected future Federal 

6 revenues, over an infinite time horizon; 

7 (B) calculates the permanent Federal rev8 enue increases and spending reductions and 

9 identifies the combination of fiscal policy op10 tions starting in the budget year, and 5, 10, 15, 

11 and 25 years after the budget year, needed to 

12 eliminate the infinite horizon fiscal gap cal13 culated as of the budget year; and 

14 (C) calculates the increases in the levels of 

15 annual rates of economic growth factors, includ16 ing technological change, labor productivity, 

17 and capital deepening, starting in the budget 

18 year, and 5, 10, 15, and 25 years after the 

19 budget year, needed to eliminate the infinite ho20 rizon fiscal gap calculated as of the budget 

21 year. 

22 (2) GENERATION.—The term ‘‘generation’’ 

23 means a 1-year age cohort. 


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1 (3) GENERATIONAL ACCOUNTING.—The term 

2 ‘‘generational accounting’’ means an economic anal3 ysis that calculates— 

4 (A) the projected present value lifetime net 

5 Federal tax burden facing each living adult gen6 eration over 18 years of age; and 

7 (B) the present value lifetime net Federal 

8 tax burdens facing each current generation of 

9 children 18 years of age and under, as well as 

10 each future generation, assuming— 

11 (i) the sum of all present value life12 time net Federal tax burdens facing each 

13 current generation of children 18 years of 

14 age and under, as well as each future gen15 eration, covers the present value of future 

16 discretionary spending, including interest 

17 and principal payments on the initial out18 standing debt, less the sum of all present 

19 value lifetime net Federal tax burdens fac20 ing living adult generations over 18 years 

21 of age; and 

22 (ii) the lifetime net Federal tax bur23 den of generations 18 years of age and 

24 under, as well as future generations, inVerDate Mar 15 2010 01:56 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2967.IH H2967

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1 creases with year of birth at the projected 

2 growth rate of labor productivity. 

3 (4) NET FEDERAL TAX BURDEN.—The term 

4 ‘‘net Federal tax burden’’ means the difference be5 tween Federal taxes paid and transfer payments re6 ceived. 

7 SEC. 3. THE CONGRESSIONAL BUDGET OFFICE REPORT. 

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

9 1974 is amended by inserting at the end the following: 

10 ‘‘(4)(A) For any legislation or resolution consid11 ered in the Senate or the House of Representatives 

12 that would impact revenues or mandatory spending 

13 by greater than 0.5 percent of gross domestic prod14 uct over the following 10-fiscal year period and upon 

15 request relating to such legislation or resolution by 

16 the Chairmen or Ranking Members of the Commit17 tees on the Budget of the House of Representatives 

18 or the Senate, the Congressional Budget Office shall 

19 be required to provide, with respect to such legisla20 tion or resolution— 

21 ‘‘(i) a fiscal gap and generational account22 ing analysis, including the change in the fiscal 

23 gap and generational accounting analysis rel24 ative to the baseline; and 


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1 ‘‘(ii) the Federal deficit, at current spend2 ing levels, in the fiscal year that is 75 years and 

3 the stock of the debt in the 75th year after the 

4 fiscal year in which the legislation is being con5 sidered. 

6 ‘‘(B) In this paragraph— 

7 ‘‘(i) the term ‘fiscal gap’ means an eco8 nomic analysis that— 

9 ‘‘(I) calculates the difference between 

10 the present value of all projected future 

11 Federal spending, including interest and 

12 principal payments on the initial out13 standing debt, and the present value of all 

14 projected future Federal revenues, over an 

15 infinite time horizon; 

16 ‘‘(II) calculates the permanent Fed17 eral revenue increases and spending reduc18 tions and identifies the combination of fis19 cal policy options starting in the budget 

20 year, and 5, 10, 15, and 25 years after the 

21 budget year, needed to eliminate the infi22 nite horizon fiscal gap calculated as of the 

23 budget year; and 

24 ‘‘(III) calculates the increases in the 

25 levels of annual rates of economic growth 


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1 factors, including technological change, 

2 labor productivity, and capital deepening, 

3 starting in the budget year, and 5, 10, 15, 

4 and 25 years after the budget year, needed 

5 to eliminate the infinite horizon fiscal gap 

6 calculated as of the budget year; 

7 ‘‘(ii) the term ‘generation’ means a 1-year 

8 age cohort; 

9 ‘‘(iii) the term ‘generational accounting’ 

10 means an economic analysis that calculates— 

11 ‘‘(I) the projected present value life12 time net Federal tax burden facing each 

13 living adult generation over 18 years of 

14 age; and 

15 ‘‘(II) the present value lifetime net 

16 Federal tax burdens facing each current 

17 generation of children 18 years of age and 

18 under, as well as each future generation, 

19 assuming— 

20 ‘‘(aa) the sum of all present 

21 value lifetime net Federal tax burdens 

22 facing each current generation of chil23 dren 18 years of age and under, as 

24 well as each future generation, covers 

25 the present value of future discreVerDate Mar 15 2010 01:56 Aug 08, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2967.IH H2967

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1 tionary spending, including interest 

2 and principal payments on the initial 

3 outstanding debt, less the sum of all 

4 present value lifetime net Federal tax 

5 burdens facing living adult genera6 tions over 18 years of age; and 

7 ‘‘(bb) the lifetime net Federal tax 

8 burden of generations 18 years of age 

9 and under, as well as future genera10 tions, increases with year of birth at 

11 the projected growth rate of labor pro12 ductivity; and 

13 ‘‘(iv) the term ‘net Federal tax burden’ 

14 means the difference between Federal taxes 

15 paid and transfer payments received.’’. 

16 SEC. 4. CBO ANNUAL REPORT. 

17 (a) IN GENERAL.—The Congressional Budget Office 

18 shall produce an annual fiscal gap and generational ac19 counting analysis within its annual ‘‘Long-Term Budget 

20 Outlook’’. 

21 (b) PUBLIC REPORT.—The Director of the Congres22 sional Budget Office shall post the report described in sub23 section (a) on the Congressional Budget Office public 

24 website. 


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1 SEC. 5. GAO ANNUAL REPORT. 

2 (a) IN GENERAL.—The Comptroller General shall 

3 produce an annual fiscal gap and generational accounting 

4 analysis within its annual ‘‘Long-Term Fiscal Outlook’’. 

5 (b) PUBLIC REPORT.—The Comptroller General shall 

6 post the report described in subsection (a) on the General 

7 Accountability Office public website. 

8 SEC. 6. THE PRESIDENT’S BUDGET. 

9 Section 1105 of title 31, United States Code, is 

10 amended— 

11 (1) in subsection (a), by— 

12 (A) redesignating paragraph (37) following 

13 paragraph (38) as paragraph (39); and 

14 (B) adding at the end the following: 

15 ‘‘(40) an analysis including— 

16 ‘‘(A) a fiscal gap and generational account17 ing analysis of the full budget proposal; 

18 ‘‘(B) a fiscal gap and generational ac19 counting analysis of specific policy changes that 

20 would impact revenues or mandatory spending 

21 by greater than 0.5 percent of gross domestic 

22 product over the following 10-fiscal year period; 

23 and 

24 ‘‘(C) the Federal deficit, at current spend25 ing levels, in the fiscal year that is 75 years and 

26 the stock of the debt in the 75th year after the 


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1 fiscal year in which the policy is being consid2 ered.’’; and 

3 (2) by inserting at the end the following: 

4 ‘‘(i) For purposes of subsection (a)(40)— 

5 ‘‘(1) the term ‘fiscal gap’ means an economic 

6 analysis that— 

7 ‘‘(A) calculates the difference between the 

8 present value of all projected future Federal 

9 spending, including interest and principal pay10 ments on the initial outstanding debt, and the 

11 present value of all projected future Federal 

12 revenues, over an infinite time horizon; 

13 ‘‘(B) calculates the permanent Federal rev14 enue increases and spending reductions and 

15 identifies the combination of fiscal policy op16 tions starting in the budget year, and 5, 10, 15, 

17 and 25 years after the budget year, needed to 

18 eliminate the infinite horizon fiscal gap cal19 culated as of the budget year; and 

20 ‘‘(C) the increases in the levels of annual 

21 rates of economic growth factors, including 

22 technological change, labor productivity, and 

23 capital deepening, starting in the budget year, 

24 and 5, 10, 15, and 25 years after the budget 


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1 year, needed to eliminate the infinite horizon 

2 fiscal gap calculated as of the budget year; 

3 ‘‘(2) the term ‘generation’ means a 1-year age 

4 cohort; 

5 ‘‘(3) the term ‘generational accounting’ means 

6 an economic analysis that calculates— 

7 ‘‘(A) the projected present value lifetime 

8 net Federal tax burden facing each living adult 

9 generation over 18 years of age; and 

10 ‘‘(B) the present value lifetime net Federal 

11 tax burdens facing each current generation of 

12 children 18 years of age and under, as well as 

13 each future generation, assuming— 

14 ‘‘(i) the sum of all present value life15 time net Federal tax burdens facing each 

16 current generation of children 18 years of 

17 age and under, as well as each future gen18 eration, covers the present value of future 

19 discretionary spending, including interest 

20 and principal payments on the initial out21 standing debt, less the sum of all present 

22 value lifetime net Federal tax burdens fac23 ing living adult generations over 18 years 

24 of age; and 


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1 ‘‘(ii) the lifetime net Federal tax bur2 den of generations 18 years of age and 

3 under, as well as future generations, in4 creases with year of birth at the projected 

5 growth rate of labor productivity; and 

6 ‘‘(4) the term ‘net Federal tax burden’ means 

7 the difference between Federal taxes paid and trans8 fer payments received.’’. 

Æ 


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