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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 57 Referral Instructions Senate (RIS)]

104th CONGRESS
  2d Session
S. J. RES. 57

 Requiring the Congressional Budget Office and the Joint Committee on 
    Taxation to 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 SENATE OF THE UNITED STATES

                             July 26, 1996

   Mr. Ashcroft introduced the following bill; which read twice and 
   referred jointly pursuant to the order of August 4, 1977, to the 
 Committees on the Budget and Governmental Affairs, with instructions 
that if one committee reports, the other committee have thirty days to 
                        report or be discharged

_______________________________________________________________________

                            JOINT RESOLUTION

 
 Requiring the Congressional Budget Office and the Joint Committee on 
    Taxation to use dynamic economic modeling in addition to static 
economic modeling in the preparation of budgetary estimates of proposed 
                    changes in Federal revenue law.

    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, 

SECTION 1. SENSE OF CONGRESS.

    It is the sense of Congress that it is necessary to ensure that 
Congress is presented with reliable information from the Congressional 
Budget Office and the Joint Committee on Taxation as to the dynamic 
macroeconomic feedback effects to changes in Federal law and the 
probable behavioral responses of taxpayers, businesses, and other 
parties to such changes. Specifically, the Congress intends that, while 
not excluding any other estimating method, dynamic estimating 
techniques shall also be used in estimating the fiscal impact of 
proposals to change Federal laws, to the extent that data are available 
to permit estimates to be made in such a manner.

SEC. 2. ESTIMATES OF THE JOINT COMMITTEE ON TAXATION.

    In addition to any other estimates it may prepare of any proposed 
change in Federal revenue law, a fiscal estimate shall be prepared by 
the Joint Committee on Taxation of each such proposed change on the 
basis of assumptions that estimate the probable behavioral responses of 
personal and business taxpayers and other relevant entities to that 
proposed change and the dynamic macroeconomic feedback effects of that 
proposed change and it shall include a statement identifying such 
assumptions. The preceding sentence shall apply only to a proposed 
change that the Joint Committee on Taxation determines, pursuant to a 
static fiscal estimate, has a fiscal impact in excess of $100,000,000 
in any fiscal year.

SEC. 3. ESTIMATES OF THE CONGRESSIONAL BUDGET OFFICE.

    In addition to any other estimates it may prepare of any proposed 
change in Federal revenue law, a fiscal estimate shall be prepared by 
the Congressional Budget Office of each such proposed change on the 
basis of assumptions that estimate the probable behavioral responses of 
personal and business taxpayers and other relevant entities to that 
proposed change and the dynamic macroeconomic feedback effects of that 
proposed change and it shall include a statement identifying those 
assumptions. The preceding sentence shall apply only to a proposed 
change that the Congressional Budget Office determines, pursuant to a 
static fiscal estimate, has a fiscal impact in excess of $100,000,000 
in any fiscal year.

SEC. 4. DISCLOSURE OF ASSUMPTIONS.

    Any report to Congress or the public made by the Joint Committee on 
Taxation or the Congressional Budget Office that contains an estimate 
made under this concurrent resolution of the effect that any 
legislation will have on revenues shall be accompanied by--
            (1) a written statement fully disclosing the economic, 
        technical, and behavioral assumptions that were made in 
        producing that estimate, and
            (2) the static fiscal estimate made with respect to the 
        same legislation and a written statement of the economic, 
        technical, and behavioral assumptions that were made in 
        producing that estimate.

SEC. 5. CONTRACTING AUTHORITY.

    In performing the tasks specified in sections 2 and 3, the Joint 
Committee on Taxation and the Congressional Budget Office may, subject 
to the availability of appropriations, enter into contracts with 
universities or other private or public organizations to perform such 
estimations or to develop protocols and models for making such 
estimates.
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