Accurate Budgeting Act

To require the use of macroeconomic analysis in estimating the budgetary effects of major revenue legislation. 1. Short title This Act may be cited as the Accurate Budgeting Act 2. Macroeconomic impact analyses for major revenue legislation (a) Definitions Section 3 of the Congressional Budget Act of 1974 ( 2 U.S.C. 622 (12) (A) The term macroeconomic impact analysis (i) an estimate of the changes in economic output, employment, interest rates, capital stock, and tax revenues expected to result from the revenue provisions in a major revenue bill or resolution; (ii) an estimate of revenue feedback expected to result from those revenue provisions; and (iii) a statement identifying the critical assumptions and the source of data underlying that estimate, to the extent necessary to make the models comprehensible to academic and public policy analysts. (B) The term major revenue bill or resolution (i) either— (I) the sum of the positive changes in revenues resulting from such measure (not including the impact of any timing shifts for the due date for estimated corporate income tax payments) for any fiscal year in the period for which an estimate is prepared under section 201(f); or (II) the absolute value of the sum of the negative changes in revenues resulting from such measure (not including the impact of any timing shifts for the due date for estimated corporate income tax payments) for any fiscal year for which such an estimate is prepared, is greater than (ii) 0.25 percent of the current projected gross domestic product of the United States (as determined by the Bureau of Economic Analysis of the Department of Commerce) for such fiscal year. (C) The term revenue feedback . (b) Macroeconomic impact analysis of major revenue legislation (1) In general Section 201(f) of the Congressional Budget Act of 1974 ( 2 U.S.C. 601(f) (A) by striking For the purposes (1) For the purposes ; and (B) by adding at the end the following: (2) To the extent practicable, a revenue estimate prepared by the Joint Committee on Taxation for a major revenue bill or resolution shall incorporate a macroeconomic impact analysis of the budgetary effects of the major revenue bill or resolution. . (2) PAYGO Section 3(4) of the Statutory Pay-As-You-Go Act of 2010 ( 2 U.S.C. 932(4) (D) (i) In this subparagraph, the terms macroeconomic impact analysis major revenue bill or resolution 2 U.S.C. 622 (ii) To the extent practicable, an estimate of the budgetary effects of a major revenue bill or resolution prepared for purposes of this Act shall incorporate a macroeconomic impact analysis of the budgetary effects of the major revenue bill or resolution. .

Summary: Accurate Budgeting Act This bill amends the Congressional Budget Act of 1974 to require the Joint Committee on Taxation to incorporate a macroeconomic impact analysis in estimates of the budgetary effects of major revenue legislation to the extent that it is practicable. The macroeconomic impact analysis, commonly referred to as dynamic scoring, includes: the changes in economic output, employment, interest rates, capital stock, and tax revenues expected to result from the proposal; revenue feedback (changes in revenue resulting from changes in economic growth as a result of the proposal); and the assumptions and data used for the estimate. The bill also amends the Statutory Pay-As-You-Go Act of 2010 (PAYGO) to require estimates of the budgetary effects of major revenue legislation prepared for purposes of PAYGO requirements to incorporate a macroeconomic impact analysis to the extent that it is practicable.