II 

112TH CONGRESS 

1ST SESSION S. 255 

To require 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 

FEBRUARY 2, 2011 

Mr. ENSIGN (for himself, Mr. CRAPO, Mr. INHOFE, and Mr. JOHANNS) introduced the following bill; which was read twice and referred to the Committee on the Budget 

A BILL 

To require 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. 

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

3 SECTION 1. SENSE OF CONGRESS. 

4 It is the sense of Congress that it is necessary to en5 sure that Congress is presented with reliable information 

6 from the Congressional Budget Office and the Joint Com7 mittee on Taxation as to the dynamic macroeconomic feedVerDate Mar 15 2010 22:48 Feb 02, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S255.IS S255

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1 back effects to changes in Federal law and the probable 

2 behavioral responses of taxpayers, businesses, and other 

3 parties to such changes. Specifically, the Congress intends 

4 that, while not excluding any other estimating method, dy5 namic estimating techniques shall also be used in esti6 mating the fiscal impact of proposals to change Federal 

7 laws, to the extent that data are available to permit esti8 mates to be made in such a manner. 

9 SEC. 2. ESTIMATES OF THE JOINT COMMITTEE ON TAX10 ATION. 

11 In addition to any other estimates it may prepare of 

12 any proposed change in Federal revenue law, a fiscal esti13 mate shall be prepared by the Joint Committee on Tax14 ation of each such proposed change on the basis of as15 sumptions that estimate the probable behavioral responses 

16 of personal and business taxpayers and other relevant en17 tities to that proposed change and the dynamic macro18 economic feedback effects of that proposed change. The 

19 preceding sentence shall apply only to a proposed change 

20 that the Joint Committee on Taxation determines, pursu21 ant to a static fiscal estimate, has a fiscal impact in excess 

22 of $250,000,000 in any fiscal year. 


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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 shall be prepared by the Congressional Budget Office 

6 of each such proposed change on the basis of assumptions 

7 that estimate the probable behavioral responses of per8 sonal and business taxpayers and other relevant entities 

9 to that proposed change and the dynamic macroeconomic 

10 feedback effects of that proposed change. The preceding 

11 sentence shall apply only to a proposed change that the 

12 Congressional Budget Office determines, pursuant to a 

13 static fiscal estimate, has a fiscal impact in excess of 

14 $250,000,000 in any fiscal year. 

15 SEC. 4. DISCLOSURE OF ASSUMPTIONS. 

16 Any report to Congress or the public made by the 

17 Joint Committee on Taxation or the Congressional Budget 

18 Office that contains an estimate made under this Act of 

19 the effect that any legislation will have on revenues shall 

20 be accompanied by— 

21 (1) a written statement fully disclosing the eco22 nomic, technical, and behavioral assumptions that 

23 were made in producing that estimate, and 

24 (2) the static fiscal estimate made with respect 

25 to the same legislation and a written statement of 


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1 the economic, technical, and behavioral assumptions 

2 that were made in producing that estimate. 

3 SEC. 5. CONTRACTING AUTHORITY. 

4 In performing the tasks specified in this Act, the 

5 Joint Committee on Taxation and the Congressional 

6 Budget Office may, subject to the availability of appro7 priations, enter into contracts with universities or other 

8 private or public organizations to perform such esti9 mations or to develop protocols and models for making 

10 such estimates. 

Æ 


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