Tax Policy Transparency Act

To require the Joint Committee on Taxation to provide a distributional analysis, and analysis of effects on after-tax wage income, of major tax legislation. 1. Short title This Act may be cited as the Tax Policy Transparency Act 2. Distributional analysis, and analysis of effect on after-tax wage income, of major tax legislation (a) In general In the case of any major tax legislation, the Joint Committee on Taxation shall (at the same time as the Joint Committee on Taxation provides an estimate of such legislation to the Director of the Congressional Budget Office under section 201(f) of the Congressional Budget Act of 1974) make publicly available— (1) a distributional analysis of such legislation; (2) a dynamic distributional after-tax wage income analysis of such legislation; and (3) a written summary of the results of the analyses under paragraphs (1) and (2), including a written summary comparing the aggregate effects of such legislation among the income categories referred to in subsection (b). (b) Distributional analysis The distributional analysis referred to in subsection (a)(1) shall be prepared in the same manner, shall cover the same time periods relative to the time of the consideration of the legislation, and shall use the same income categories and income concept, as the analysis of distributional effects provided in the Committee Print of the Joint Committee on Taxation titled Technical explanation, estimated revenue effects, distributional analysis, and macroeconomic analysis of the Tax Reform Act of 2014, a discussion draft of the Chairman of the House Committee on Ways and Means to reform the Internal Revenue Code (c) Dynamic distributional after-Tax wage income analysis The dynamic distributional after-tax wage income analysis referred to in subsection (a)(2) shall provide an analysis of the anticipated effects of the legislation on after-tax wage income of individuals— (1) separately on the basis of the income categories referred to in subsection (b); (2) covering the same time periods as the analysis described in subsection (b); and (3) after taking into account the budgetary effects of changes in economic output, employment, capital stock, and other macroeconomic variables resulting from such legislation. (d) Major tax legislation For purposes of this section, the term major tax legislation (e) Annual updates In the case of any major tax legislation to which subsection (a) applies and which is enacted into law, the Joint Committee on Taxation shall annually (with respect to each of the 10 fiscal years beginning after the date of the enactment of such legislation) submit to Congress revised estimates of the information described in subsection (a) with respect to such law as so enacted.

Summary: Tax Policy Transparency Act This bill requires the Joint Committee on Taxation (JCT) to make publicly available an analysis of the effects of major tax legislation, including: (1) a distributional analysis, (2) a dynamic distributional after-tax wage income analysis, and (3) a written summary of the results of the analyses. During the 10-year period after major tax legislation is enacted into law, the JCT must submit to Congress annual updates for the estimates included in the analyses. &quot;Major tax legislation&quot; includes legislation for which the estimate provided by the JCT and the Congressional Budget Office under the Congressional Budget Act of 1974 incorporates the budgetary effects of changes in economic output, employment, capital stock, and other macroeconomic variables (commonly known as dynamic scoring).