IIB 
113TH CONGRESS 
2D SESSION 
H. R. 1874 
IN THE SENATE OF THE UNITED STATES 
APRIL 7, 2014 
Received; read twice and referred to the Committee on the Budget 
AN ACT 
To amend the Congressional Budget Act of 1974 to provide 
for macroeconomic analysis of the impact of legislation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Mar 15 2010 
02:20 Apr 08, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1874.RFS
H1874
tjames on DSK6SPTVN1PROD with BILLS
HR 1874 RFS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pro-Growth Budgeting 
Act of 2014’’. 
SEC. 2. MACROECONOMIC IMPACT ANALYSES. 
(a) IN GENERAL.—Part A of title IV of the Congres-
sional Budget Act of 1974 is amended by adding at the 
end the following new section: 
‘‘MACROECONOMIC IMPACT ANALYSIS OF MAJOR 
LEGISLATION 
‘‘SEC. 407. (a) CONGRESSIONAL BUDGET OFFICE.— 
The Congressional Budget Office shall, to the extent prac-
ticable, prepare for each major bill or resolution reported 
by any committee of the House of Representatives or the 
Senate (except the Committee on Appropriations of each 
House), as a supplement to estimates prepared under sec-
tion 402, a macroeconomic impact analysis of the budg-
etary effects of such bill or resolution for the ten fiscal- 
year period beginning with the first fiscal year for which 
an estimate was prepared under section 402 and each of 
the next three ten fiscal-year periods. The Director shall 
submit to such committee the macroeconomic impact anal-
ysis, together with the basis for the analysis. As a supple-
ment to estimates prepared under section 402, all such 
information so submitted shall be included in the report 
accompanying such bill or resolution. 
VerDate Mar 15 2010 
02:20 Apr 08, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1874.RFS
H1874
tjames on DSK6SPTVN1PROD with BILLS
HR 1874 RFS
‘‘(b) ECONOMIC IMPACT.—The analysis prepared 
under subsection (a) shall describe the potential economic 
impact of the applicable major bill or resolution on major 
economic variables, including real gross domestic product, 
business investment, the capital stock, employment, inter-
est rates, and labor supply. The analysis shall also de-
scribe the potential fiscal effects of the bill or resolution, 
including any estimates of revenue increases or decreases 
resulting from changes in gross domestic product. To the 
extent practicable, the analysis should use a variety of eco-
nomic models in order to reflect the full range of possible 
economic outcomes resulting from the bill or resolution. 
The analysis (or a technical appendix to the analysis) shall 
specify the economic and econometric models used, sources 
of data, relevant data transformations, and shall include 
such explanation as is necessary to make the models com-
prehensible to academic and public policy analysts. 
‘‘(c) REPORTING ON ACCURACY OF MACROECONOMIC 
IMPACT ANALYSES.—Upon completion of the fifth fiscal 
year beginning after the date of enactment of any major 
bill or joint resolution for which the Congressional Budget 
Office prepared an analysis under subsection (a), the Con-
gressional Budget Office shall report on the accuracy of 
the original macroeconomic impact analysis of such en-
acted bill or joint resolution and submit these reports to 
VerDate Mar 15 2010 
02:20 Apr 08, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1874.RFS
H1874
tjames on DSK6SPTVN1PROD with BILLS
HR 1874 RFS
the Committees on the Budget of the House of Represent-
atives and the Senate. 
‘‘(d) DEFINITIONS.—As used in this section— 
‘‘(1) the term ‘macroeconomic impact analysis’ 
means— 
‘‘(A) an estimate of the changes in eco-
nomic output, employment, interest rates, cap-
ital stock, and tax revenues expected to result 
from enactment of the proposal; 
‘‘(B) an estimate of revenue feedback ex-
pected to result from enactment of the proposal; 
and 
‘‘(C) a statement identifying the critical 
assumptions and the source of data underlying 
that estimate; 
‘‘(2) the term ‘major bill or resolution’ means 
any bill or resolution if the gross budgetary effects 
of such bill or resolution for any fiscal year in the 
period for which an estimate is prepared under sec-
tion 402 is estimated to be greater than .25 percent 
of the current projected gross domestic product of 
the United States for any such fiscal year; 
‘‘(3) the term ‘budgetary effect’, when applied 
to a major bill or resolution, means the changes in 
VerDate Mar 15 2010 
02:20 Apr 08, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1874.RFS
H1874
tjames on DSK6SPTVN1PROD with BILLS
HR 1874 RFS
revenues, outlays, deficits, and debt resulting from 
that measure; and 
‘‘(4) the term ‘revenue feedback’ means changes 
in revenue resulting from changes in economic 
growth as the result of the enactment of any major 
bill or resolution. 
‘‘(e) LEGISLATION WITH REVENUE PROVISIONS.— 
The macroeconomic analysis described in subsection (c) 
shall rely on macroeconomic analysis prepared by the 
Joint Committee on Taxation for any provisions of such 
legislation that are described in section 201(f). For legisla-
tion consisting solely of provisions described in section 
201(f), the macroeconomic analysis described in sub-
section (c) shall be prepared by the Joint Committee on 
Taxation.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by in-
serting after the item relating to section 406 the following 
new item: 
‘‘Sec. 407. Macroeconomic impact analysis of major legislation.’’. 
Passed the House of Representatives April 4, 2014. 
Attest: 
KAREN L. HAAS, 
Clerk. 
VerDate Mar 15 2010 
02:20 Apr 08, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1874.RFS
H1874
tjames on DSK6SPTVN1PROD with BILLS