II 

117TH CONGRESS 

1ST SESSION S. 2548 

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 SENATE OF THE UNITED STATES 

JULY 29, 2021 

Mr. BRAUN (for himself, Ms. LUMMIS, Mr. SCOTT of Florida, and Mr. CRUZ) 

introduced the following bill; which was read twice and 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’’. 

6 SEC. 2. THE CONGRESSIONAL BUDGET OFFICE REPORT. 

7 Section 202 of the Congressional Budget Act of 1974 

8 (2 U.S.C. 602) is amended— 


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1 (1) in subsection (e), by adding at the end the 

2 following: 

3 ‘‘(4) For any legislation or resolution consid4 ered in the Senate or the House of Representatives 

5 that would impact revenues or mandatory spending 

6 by greater than 0.5 percent of the gross domestic 

7 product over the following 10-fiscal-year period and 

8 upon request relating to any other legislation or res9 olution by the Chairman or Ranking Member of the 

10 Committee on the Budget of the House of Rep11 resentatives or of the Committee on the Budget of 

12 the Senate, the Congressional Budget Office shall 

13 provide with respect to such legislation or resolution 

14 a report that includes— 

15 ‘‘(A) a fiscal gap report and a generational 

16 account report, including changes in the fiscal 

17 gap and generational accounts relative to the 

18 baseline estimates for purposes of each such re19 port; 

20 ‘‘(B) Federal deficits as of the end of the 

21 fiscal year that is 75 years after the budget 

22 year with respect to the legislation, under a 

23 baseline estimate and an alternative scenario 

24 estimate; and 


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1 ‘‘(C) outstanding Treasury liabilities as of 

2 the end of the fiscal year that is 75 years after 

3 the budget year with respect to the legislation, 

4 under a baseline estimate and an alternative 

5 scenario estimate.’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(h) DEFINITIONS.—In this section: 

8 ‘‘(1) ALTERNATIVE SCENARIO ESTIMATE.—The 

9 term ‘alternative scenario estimate’ means an esti10 mate assuming laws, as in effect during the budget 

11 year, continue to be in effect for each subsequent 

12 fiscal year. 

13 ‘‘(2) BASELINE ESTIMATE.—The term ‘baseline 

14 estimate’ means an estimate based on laws enacted 

15 through the date of the estimate. 

16 ‘‘(3) BUDGET YEAR.—The term ‘budget year’ 

17 has the meaning given that term in section 250(c) 

18 of the Balanced Budget and Emergency Deficit Con19 trol Act of 1985 (2 U.S.C. 900(c)). 

20 ‘‘(4) DIRECT SPENDING.—The term ‘direct 

21 spending’ has the meaning given that term in sec22 tion 250(c) of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985 (2 U.S.C. 900(c)). 


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1 ‘‘(5) EXPLICIT DEBT.—The term ‘explicit debt’ 

2 means the total amount of Treasury liabilities out3 standing on the last day of the budget year. 

4 ‘‘(6) FISCAL GAP.—The term ‘fiscal gap’ means 

5 the sum of the explicit debt and the implicit debt. 

6 ‘‘(7) FISCAL GAP POLICY OPTION.— 

7 ‘‘(A) IN GENERAL.—The term ‘fiscal gap 

8 policy option’ means the permanent across-the9 board change in particular (combinations of) 

10 Federal revenues or the permanent across-the11 board change in particular (combinations of) 

12 Federal expenditures required to make the fis13 cal gap equal to zero. 

14 ‘‘(B) TIMING.—The change in revenues or 

15 expenditures for purposes of subparagraph 

16 (A)— 

17 ‘‘(i) may be calculated under alter18 native timings of when the policy change 

19 begins; and 

20 ‘‘(ii) shall, at a minimum, include pol21 icy change options starting 1, 5, 10, 15, 

22 and 25 fiscal years after the budget year. 

23 ‘‘(C) POLICY OPTIONS.—The potential 

24 combinations of changes in Federal revenues 


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1 and Federal expenditures that are a part of a 

2 fiscal gap policy option may include— 

3 ‘‘(i) income taxes imposed under 

4 chapter 1 of the Internal Revenue Code of 

5 1986; 

6 ‘‘(ii) taxes described in clause (i), 

7 taxes on self-employment income under 

8 chapter 2 of the Internal Revenue Code of 

9 1986, employment taxes imposed under 

10 chapters 21 and 22 of such Code, and off11 setting receipts; 

12 ‘‘(iii) taxes and receipts described in 

13 clause (ii), excise taxes imposed under sub14 titles D and E of the Internal Revenue 

15 Code of 1986, estate and gift taxes im16 posed under subtitle B of such Code, cus17 toms duties, and other receipts; 

18 ‘‘(iv) discretionary appropriations 

19 (with no changes to offsetting receipts); 

20 ‘‘(v) direct spending and expenditures 

21 under the Federal old-age, survivors, and 

22 disability insurance benefits program 

23 under title II of the Social Security Act, 

24 the Medicare program under parts A and 

25 B of title XVIII of the Social Security Act, 


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1 and Medicare Prescription Drug Coverage 

2 under part D of title XVIII of the Social 

3 Security Act; 

4 ‘‘(vi) direct spending and expenditures 

5 described in clause (v) and all other direct 

6 spending including the supplemental nutri7 tion assistance program, supplemental se8 curity income benefits, child, earned in9 come, and other tax credits, child nutrition 

10 programs, the temporary assistance for 

11 needy families program, housing assistance 

12 programs, and civilian and military retire13 ment programs; and 

14 ‘‘(vii) discretionary appropriations and 

15 direct spending, except interest payments 

16 on outstanding Treasury liabilities. 

17 ‘‘(D) DYNAMIC EFFECTS.—Calculations of 

18 fiscal gap policy options shall incorporate dy19 namic effects from induced changes in labor 

20 supply, national saving, and capital formation, 

21 as relevant to each particular policy option 

22 among those described in subparagraphs (C). 

23 ‘‘(8) FISCAL GAP REPORT.— 


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1 ‘‘(A) IN GENERAL.—The term ‘fiscal gap 

2 report’ means a report that, in accordance with 

3 this paragraph— 

4 ‘‘(i) specifies the amount of explicit 

5 debt, the implicit debt, and the fiscal gap; 

6 ‘‘(ii) provides fiscal gap policy options; 

7 and 

8 ‘‘(iii) incorporates a fiscal gap sensi9 tivity analysis. 

10 ‘‘(B) SEPARATE REPORTING FOR TRUST

11 FUNDS.— 

12 ‘‘(i) IN GENERAL.—A fiscal gap re13 port shall address each item specified in 

14 clauses (i), (ii), and (iii) of subparagraph 

15 (A) separately for each social insurance 

16 program. 

17 ‘‘(ii) FISCAL GAP POLICY OPTIONS.— 

18 The fiscal gap policy options provided for 

19 each Federal social insurance program 

20 shall be limited to changes in receipts and 

21 expenditures from the applicable trust 

22 fund. 

23 ‘‘(iii) CALCULATION.— 

24 ‘‘(I) IN GENERAL.—For purposes 

25 of calculations relating to the fiscal 


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1 gap in connection with a social insur2 ance program, the calculations shall 

3 be determined as the sum of— 

4 ‘‘(aa) the projected budget5 year-end value of Treasury secu6 rities and other assets held in the 

7 applicable trust fund; and 

8 ‘‘(bb) the present discounted 

9 value of annual expenditures 

10 from the applicable trust fund 

11 over future fiscal years minus the 

12 present discounted value of re13 ceipts paid into the applicable 

14 trust fund excluding transfers 

15 from other Federal funds over 

16 future fiscal years. 

17 ‘‘(II) EXPENDITURES AND RE18 CEIPTS.—For purposes of subclause 

19 (I), expenditures and receipts shall in20 clude expenditures and receipts pro21 jected through the future fiscal year 

22 described in paragraph (15)(B). 

23 ‘‘(iv) LIMITING.—For each social in24 surance program, a fiscal gap report shall 

25 separately address each item specified in 


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1 clauses (i), (ii), and (iii) of subparagraph 

2 (A) as specified and after limiting the cal3 culation under clause (iii)(I)(bb) to the 

4 closed group of past and current adult pro5 gram participants (as described in para6 graph 11(B)(i)), both taxpayers and bene7 ficiaries. 

8 ‘‘(C) SCENARIOS.—A fiscal gap report 

9 shall address each item specified in clauses (i), 

10 (ii), and (iii) of subparagraph (A) under— 

11 ‘‘(i) a baseline estimate; and 

12 ‘‘(ii) an alternative scenario estimate. 

13 ‘‘(D) AMOUNTS.—A fiscal gap report shall 

14 provide information with respect to each item 

15 specified in clauses (i), (ii), and (iii) of subpara16 graph (A)— 

17 ‘‘(i) in present-discounted dollars; 

18 ‘‘(ii) as percentages of present-dis19 counted value of future gross domestic 

20 product projected through the future fiscal 

21 year described in paragraph (15)(B); and 

22 ‘‘(iii) as a percentage of the amount 

23 of taxes projected to be collected under 

24 sections 1401(b), 3101(b), and 3111(b) of 

25 the Internal Revenue Code of 1986 


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1 through the future fiscal year described in 

2 paragraph (15)(B). 

3 ‘‘(9) FISCAL GAP SENSITIVITY ANALYSIS.— 

4 ‘‘(A) IN GENERAL.—The term ‘fiscal gap 

5 sensitivity analysis’ means estimates of changes 

6 to the fiscal gap amounts specified in para7 graph (8)(D) calculated under alternative eco8 nomic and demographic assumptions for a given 

9 scenario described in paragraph (8)(C). 

10 ‘‘(B) REQUIRED ALTERNATIVES.—The al11 ternative economic assumptions for any fiscal 

12 gap sensitivity analysis shall include the fol13 lowing: 

14 ‘‘(i) Projected annual rate of popu15 lation growth that is 25 basis points larger 

16 and 25 basis points smaller than the base17 line population growth-rate projection spec18 ified under paragraph (15)(C). In making 

19 the estimates, the applicable agency may 

20 use reasonable alternative symmetric basis 

21 point variations around baseline popu22 lation-growth projections consistent with 

23 uncertainty associated with underlying 

24 growth components of fertility, mortality, 

25 and immigration rates. 


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1 ‘‘(ii) Projected annual rates of labor 

2 productivity growth that is 50 basis points 

3 larger and 50 basis points smaller than the 

4 baseline labor productivity growth-rate pro5 jection specified under paragraph (15)(C). 

6 In making the estimates, the applicable 

7 agency may use reasonable alternative, 

8 symmetric basis-point variations around 

9 baseline labor-productivity growth rates 

10 consistent with uncertainty associated with 

11 underlying components of inflation rates, 

12 technological change, capital intensity, and 

13 labor efficiency. 

14 ‘‘(iii) Projected discount rates that are 

15 75 basis points larger and 75 basis points 

16 smaller than the baseline long-term dis17 count rate projection specified under para18 graph (15)(D). In making the estimates, 

19 the applicable agency may use reasonable 

20 alternative, symmetric basis-point vari21 ations as appropriate around baseline in22 terest rate projections consistent with un23 certainty associated with long-term govern24 ment borrowing rates. All interest rate 

25 variations reported shall be consistent with 


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1 maintaining a net positive average long2 term interest rate after subtracting the 

3 long-term average labor productivity 

4 growth rate of the economy of the United 

5 States. 

6 ‘‘(10) GENERATION.—The term ‘generation’ 

7 means a 1-year birth cohort of individuals of a given 

8 gender born during a given fiscal year. 

9 ‘‘(11) GENERATIONAL ACCOUNT.— 

10 ‘‘(A) IN GENERAL.—The term 

11 ‘generational account’ means the actuarially 

12 present-valued amount per capita for a given 

13 generation of annual net Federal tax burdens 

14 during that generation’s remaining lifetime 

15 under a particular Federal fiscal policy. 

16 ‘‘(B) AGES.—A report regarding 

17 generational accounts shall include generational 

18 accounts for— 

19 ‘‘(i) selected individual generations 

20 born not less than 18 years before the re21 port; and 

22 ‘‘(ii) selected individual generations 

23 born or who will be born after the date 

24 that is 18 years before the report, includ25 ing those born after the budget year. 


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1 ‘‘(C) CALCULATION.—Generational ac2 counts of children and future generations de3 scribed in subparagraph (B)(ii) shall be cal4 culated such that— 

5 ‘‘(i) their total over all members 

6 equals the sum of— 

7 ‘‘(I) Treasury liabilities projected 

8 to be outstanding at the end of the 

9 budget year; and 

10 ‘‘(II) the present value of pro11 jected discretionary (non-transfer) 

12 Federal spending minus the sum of 

13 the generational accounts of adult 

14 generations described in subparagraph 

15 (B)(i); 

16 ‘‘(ii) the ratio of the generational ac17 count of males of each generation among 

18 children and future generations described 

19 in subparagraph (B)(ii) to the generational 

20 account of females born in the same year 

21 is set equal to the ratio of the generational 

22 accounts of males and females born 18 

23 years before the calculation; and 

24 ‘‘(iii) the generational accounts of 

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1 tions described in subparagraph (B)(ii) in2 creases with the year of their births at the 

3 projected growth rate of labor productivity. 

4 ‘‘(12) GENERATIONAL ACCOUNT POLICY EF5 FECTS.— 

6 ‘‘(A) IN GENERAL.—The term 

7 ‘generational account policy effects’ means the 

8 changes to the generational accounts of adults 

9 described in paragraph (11)(B)(i) and children 

10 and future generations described in paragraph 

11 (10)(B)(ii) and to the generational net-tax-bur12 den gap from changes to particular (combina13 tions of) Federal taxes and to particular (com14 binations of) Federal expenditures. 

15 ‘‘(B) DYNAMIC EFFECTS.—Calculations of 

16 generational accounts policy options shall incor17 porate dynamic effects from induced changes in 

18 employment, national saving, and capital forma19 tion, as relevant to each particular policy option 

20 described in paragraph (7)(C). 

21 ‘‘(13) GENERATIONAL ACCOUNT REPORT.— 

22 ‘‘(A) IN GENERAL.—The term 

23 ‘generational account report’ means a report 

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1 cludes generational accounts and a discussion of 

2 generational account policy effects. 

3 ‘‘(B) SCENARIOS.—A generational account 

4 report shall address generational accounts, in5 cluding net Federal tax burdens, under— 

6 ‘‘(i) a baseline estimate; and 

7 ‘‘(ii) an alternative scenario estimate. 

8 ‘‘(14) GENERATIONAL NET-TAX-BURDEN

9 GAP.—The term ‘generational net-tax-burden gap’ 

10 means the ratios of the generational account of 

11 males and females born 17 years before the budget 

12 year to the generational accounts of males and fe13 males, respectively, born 18 years before the budget 

14 year minus 1 times 100. 

15 ‘‘(15) IMPLICIT DEBT.— 

16 ‘‘(A) IN GENERAL.—The term ‘implicit 

17 debt’ means the difference between— 

18 ‘‘(i) the discounted present value of 

19 projected annual Federal spending during 

20 the period of the budget year and not less 

21 than the ensuing 75 fiscal years, excluding 

22 spending for net interest and principal 

23 payments on Treasury liabilities; and 

24 ‘‘(ii) the discounted present value of 

25 Federal tax and non-tax receipts during 


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1 the period of the budget year and not less 

2 than the ensuing 75 fiscal years. 

3 ‘‘(B) PROJECTION PERIOD.—Annual Fed4 eral noninterest spending and receipts used to 

5 calculate implicit debt shall be projected 

6 through a future fiscal year, at least 75 years 

7 beyond the budget year, and such that the ac8 crual to the fiscal gap by extending the calcula9 tion by 1 additional fiscal year is within 0.1 

10 percent of the fiscal gap without extending the 

11 calculation by 1 fiscal year. 

12 ‘‘(C) FEDERAL BUDGET PROJECTIONS.— 

13 The growth of Federal noninterest spending 

14 and receipts over future fiscal years shall be 

15 consistent with the baseline projections of popu16 lation growth, general price inflation (Personal 

17 Consumption Expenditures index), and labor18 productivity-growth factors including techno19 logical change, capital intensity, and labor effi20 ciency, as determined by the applicable agency. 

21 ‘‘(D) DISCOUNT RATES.—For purposes of 

22 calculating the implicit debt, the discount rates 

23 shall be the interest rate projections of the Con24 gressional Budget Office over the projection hoVerDate Sep 11 2014 22:40 Aug 04, 2021 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S2548.IS S2548

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1 rizon on Treasury bonds with prospective matu2 rity of at least 20 years and longer. 

3 ‘‘(16) 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 ‘‘(17) SOCIAL INSURANCE PROGRAM.—The 

8 term ‘social insurance program’— 

9 ‘‘(A) means a social insurance program 

10 that is funded out of a Federal trust fund; and 

11 ‘‘(B) includes the Federal old-age, sur12 vivors, and disability insurance benefits pro13 gram under title II of the Social Security Act, 

14 the Medicare program under parts A and B of 

15 title XVIII of the Social Security Act, and the 

16 Medicare Prescription Drug Coverage under 

17 part D of title XVIII of the Social Security Act. 

18 ‘‘(18) TREASURY LIABILITIES.—The term 

19 ‘Treasury liabilities’ means the face amount of obli20 gations issued under chapter 31 of title 31, United 

21 States Code, and the face amount of obligations 

22 whose principal and interest are guaranteed by the 

23 United States Government (except guaranteed obli24 gations held by the Secretary of the Treasury)—as 

25 in section 3101(b) of title 31.’’. 


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1 SEC. 3. CBO ANNUAL REPORT. 

2 (a) REQUIREMENT.— 

3 (1) IN GENERAL.—The Congressional Budget 

4 Office shall produce a fiscal gap and generational 

5 accounting analysis, which shall be reported as a 

6 separate section within its annual ‘‘Long-Term 

7 Budget Outlook’’. 

8 (2) DEFINITIONS.—In this subsection, the 

9 terms ‘‘fiscal gap’’ and ‘‘generational account’’ have 

10 the meanings given such terms in subsection (h) of 

11 section 202 of the Congressional Budget Act of 

12 1974 (2 U.S.C. 602), as added by section 2. 

13 (b) PUBLIC REPORT.—The Director of the Congres14 sional Budget Office shall post the report described in sub15 section (a) on the Congressional Budget Office public 

16 website. 

17 SEC. 4. GAO ANNUAL REPORT. 

18 (a) REQUIREMENT.— 

19 (1) IN GENERAL.—The Comptroller General 

20 shall produce annually a report on fiscal gap and 

21 generational accounting analysis consistent with the 

22 assumptions of the Government Accountability Of23 fice with respect to baseline projections of population 

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1 growth factors including technological change, cap2 ital intensity, and labor efficiency. 

3 (2) DEFINITIONS.—In this subsection, the 

4 terms ‘‘fiscal gap’’ and ‘‘generational account’’ have 

5 the meanings given such terms in subsection (h) of 

6 section 202 of the Congressional Budget Act of 

7 1974 (2 U.S.C. 602), as added by section 2. 

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

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

10 Accountability Office public website. 

11 SEC. 5. THE PRESIDENT’S BUDGET. 

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

13 amended— 

14 (1) in subsection (a), by adding at the end the 

15 following: 

16 ‘‘(40) an analysis including— 

17 ‘‘(A) a fiscal gap report and a generational 

18 account report, including changes in the fiscal 

19 gap and generational accounts relative to the 

20 baseline estimates for purposes of each report; 

21 ‘‘(B) Federal deficits as of the end of the 

22 fiscal year that is 75 years after the budget 

23 year, under a baseline estimate and an alter24 native scenario estimate; and 


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1 ‘‘(C) outstanding Treasury liabilities as of 

2 the end of the fiscal year that is 75 years after 

3 the budget year, under a baseline estimate and 

4 an alternative scenario estimate.’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(i)(1) For purposes of subsection (a)(40), the terms 

7 ‘alternative scenario estimate’, ‘baseline estimate’, ‘fiscal 

8 gap’, ‘fiscal gap report’, ‘generational account’, 

9 ‘generational account report’, and ‘Treasury liabilities’ 

10 have the meanings given such terms in section 202(h) of 

11 the Congressional Budget Act of 1974 (2 U.S.C. 602(h)). 

12 ‘‘(2) For purposes of subsection (a)(40), the terms 

13 defined in paragraph (1) shall be calculated using the as14 sumptions of the President of baseline projections of popu15 lation growth, general price inflation (Personal Consump16 tion Expenditures index), and labor-productivity-growth 

17 factors including technological change, capital intensity, 

18 and labor efficiency.’’. 

Æ 


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