I 
112TH CONGRESS 
1ST SESSION H. R. 1302 
To make the Federal budget process more transparent and to make future 
budgets more sustainable. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 31, 2011 
Mr. QUIGLEY (for himself, Mr. PETERS, Mr. HIMES, and Mr. POLIS) intro-
duced the following bill; which was referred to the Committee on the 
Budget, and in addition to the Committees on Rules and Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To make the Federal budget process more transparent and 
to make future budgets more sustainable. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Transparent and Sustainable Budget Act of 2011’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
Sec. 2. Purpose. 
TITLE I—RECEIPT FOR TAXPAYERS 
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Sec. 101. Provision of taxpayer receipt. 
TITLE II—RETURN TO RESPONSIBLE BUDGET RULES 
Sec. 201. Restoring House PAYGO rule. 
Sec. 202. Removing authority of Budget Chairman to unilaterally set spending 
limits. 
TITLE III—MORE TRANSPARENCY AND BETTER ACCOUNTING 
FOR LONG-TERM SPENDING 
Subtitle A—CBO and JCT Descriptive Analyses for Second Decade Budget 
Impact and Net Present Value Estimates for Any Costs Escalate Outside 
10-Year Budget Window 
Sec. 301. CBO and JCT descriptive analyses for second decade budget impact. 
Sec. 302. CBO and JCT net present value estimates. 
Subtitle B—OMB Reports on Unbudgeted Fiscal Exposures 
Sec. 311. OMB reports on unbudgeted fiscal exposures. 
Subtitle C—Accrual Accounting Report 
Sec. 321. Accrual accounting report. 
TITLE IV—RENEWED BUDGET PROCESS EMPHASIS ON FISCAL 
SUSTAINABILITY 
Subtitle A—Reform of the President’s Budget 
Sec. 401. Long-term fiscal responsibility. 
Subtitle B—Reform of the Congressional Budget Resolution 
Sec. 411. Long-term fiscal responsibility. 
Subtitle C—Quadrennial Fiscal Sustainability Report 
Sec. 421. OMB quadrennial reports. 
Subtitle D—Presidential Address to Congress on Fiscal Sustainability 
Sec. 431. Presidential address on long-term fiscal sustainability. 
TITLE V—MORE OVERSIGHT OF TAX EXPENDITURES 
Subtitle A—Identification of Tax Expenditures 
Sec. 501. JCT reports on tax expenditures. 
Sec. 502. Definition of tax subsidy. 
Subtitle B—Enforcement of Tax Expenditure Requirements 
Sec. 511. Tax expenditure points of order. 
Subtitle C—Point of Order Against Tax Expenditures Unless They Sunset 
Within Ten Years 
Sec. 521. Point of order regarding tax expenditures. 
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Subtitle D—Tax Expenditure Performance Reviews 
Sec. 531. Tax expenditure performance reviews. 
Subtitle E—Studies To Improve the Use of IRS Data in Evaluating Tax 
Expenditures 
Sec. 541. GAO report on tax expenditures. 
Subtitle F—Executive Branch Reporting of Tax Expenditures 
Sec. 551. Executive branch reporting of tax expenditures. 
SEC. 2. PURPOSE. 
The Congress declares that it is essential— 
(1) to establish the sustainability of public debt 
and annual deficits as a fundamental objective of the 
budget process; 
(2) to ensure that the budget of the United 
States Government is fully transparent, comprehen-
sible, and accurate; 
(3) to establish effective controls over tax ex-
penditures and to integrate them into the budget 
process; and 
(4) to initiate a public discussion about fiscal 
sustainability and budget transparency. 
TITLE I—RECEIPT FOR 
TAXPAYERS 
SEC. 101. PROVISION OF TAXPAYER RECEIPT. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 (relating to miscellaneous provisions) 
is amended by adding at the end the following new section: 
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‘‘SEC. 7529. TAXPAYER RECEIPT. 
‘‘(a) IN GENERAL.—Not later than October 15, 
2012, and annually thereafter, the Secretary shall provide 
via United States mail a Tax Receipt to each taxpayer 
(other than a trust, estate, partnership, or corporation) 
who made a return with respect to income taxes under 
chapter 1 for the preceding taxable year and for whom 
a current mailing address can be determined through such 
methods as the Secretary determines to be appropriate. 
‘‘(b) TAX RECEIPT.—For purposes of this section, 
each Tax Receipt shall— 
‘‘(1) state the amount of taxes paid (even if $0) 
and refund made to the taxpayer and state (by each 
filing status specified in subsections (a) through (d) 
of section 1) the average amount of tax paid by tax-
payers in each tax bracket, and 
‘‘(2) contain a table listing— 
‘‘(A) each of the spending categories de-
scribed in subsection (c), 
‘‘(B) with respect to each spending cat-
egory described in subsection (c)— 
‘‘(i) the ratio (expressed as a percent-
age) which bears the same percentage of 
the taxpayer’s income tax liability for the 
preceding taxable year to such category as 
the ratio that such category bears to the 
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‘‘(K) Income Security. 
‘‘(L) International Affairs. 
‘‘(M) International Development and Hu-
manitarian Assistance. 
‘‘(N) Medicare. 
‘‘(O) Medicaid. 
‘‘(P) National Defense. 
‘‘(Q) Natural Resources and Environment. 
‘‘(R) Net Interest on the National Debt. 
‘‘(S) Ongoing military operation authorized 
under a formal declaration of war by Congress 
or resolution passed by the United Nations Se-
curity Council, including Operation New Dawn, 
Operation Iraqi Freedom, and Operation En-
during Freedom, with each such military oper-
ation listed as a separate spending category. 
‘‘(T) Salaries and Benefits for Members of 
Congress. 
‘‘(U) Social Security. 
‘‘(V) Transportation. 
‘‘(W) Undistributed Offsetting Receipts. 
‘‘(X) Veterans Benefits and Services. 
‘‘(2) 
RULES
RELATING
TO
APPROPRIATE 
SPENDING CATEGORIES.— 
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‘‘(A) IN GENERAL.—For purposes of para-
graph (1)— 
‘‘(i) the spending categories shall be 
set forth in order of cost, with the greatest 
expense stated first, and 
‘‘(ii) each spending category shall 
have a one sentence, general description of 
the programs, projects, and activities com-
prising that spending category. 
‘‘(B) PROGRAMS, PROJECTS, AND ACTIVI-
TIES.—The Secretary shall assign each Federal 
program, project, or activity to one of the cat-
egories described in paragraph (1). Once as-
signed, the program, project, or activity cannot 
be moved to a different spending category in 
subsequent years. If a program, project, or ac-
tivity changes in material substance, the Sec-
retary may, in consultation with Congress, 
move the program, project, or activity to the 
appropriate spending category. 
‘‘(d) TAX EXPENDITURES.—For purposes of this sec-
tion, the term ‘tax expenditure’ shall have the meaning 
given such term by section 3(3) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 
621). 
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‘‘(e) ANNUAL BUDGET REVIEW.—The annual budget 
review described in this subsection with respect to a fiscal 
year shall be prepared by the Secretary in consultation 
with the Congressional Budget Office and shall— 
‘‘(1) use the budget projections prepared by the 
Congressional Budget Office, and 
‘‘(2) include— 
‘‘(A) an estimate of total Federal receipts 
and outlays for the current fiscal year, 
‘‘(B) actual Federal receipts and outlays 
for the preceding 5 fiscal years, and 
‘‘(C) projections of Federal receipts and 
outlays for the succeeding 10 fiscal years. 
‘‘(f) RULE RELATING TO NONRESIDENT ALIENS.— 
Subsection (a) shall not apply to an individual who is a 
nonresident alien (within the meaning of section 
7701(b)(1)(B)). 
‘‘(g) WEBSITE.— 
‘‘(1) IN GENERAL.—The website referred to in 
this subsection is a website on which a taxpayer can 
input his Federal income tax liability and see more 
detailed information concerning each of the cat-
egories contained in his Tax Receipt. 
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‘‘(2) PERIOD
FOR
MAINTAINING
TAX
RE-
CEIPTS.—The website shall maintain a copy of the 
receipt for each taxpayer for the previous 5 years. 
‘‘(3) PROTECTION
OF
TAXPAYER
INFORMA-
TION.—In making information available on a website 
pursuant to this section, the Secretary shall ensure 
proper access to online taxpayer records and shall 
protect the security and privacy of taxpayer informa-
tion online.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 7529. Taxpayer receipt.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns for taxable years begin-
ning after December 31, 2010. 
TITLE II—RETURN TO 
RESPONSIBLE BUDGET RULES 
SEC. 201. RESTORING HOUSE PAYGO RULE. 
Clause 10 of rule XXI of the Rules of the House of 
Representatives is amended to read as follows: 
‘‘10.(a)(1) Except as provided in paragraphs (b) and 
(c), it shall not be in order to consider any bill, joint reso-
lution, amendment, or conference report if the provisions 
of such measure affecting direct spending and revenues 
have the net effect of increasing the on-budget deficit or 
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reducing the on-budget surplus for the period comprising 
either— 
‘‘(A) the current year, the budget year, and the 
four years following that budget year; or 
‘‘(B) the current year, the budget year, and the 
nine years following that budget year. 
‘‘(2) The effect of such measure on the deficit or sur-
plus shall be determined on the basis of estimates made 
by the Committee on the Budget relative to baseline esti-
mates supplied by the Congressional Budget Office con-
sistent with section 257 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 and consistent 
with sections 3(4), 3(8), and 4(c) of the Statutory Pay- 
As-You-Go Act of 2010. 
‘‘(3) For the purpose of this clause, the terms ‘budget 
year’, ‘current year’, and ‘direct spending’ have the mean-
ings specified in section 250 of the Balanced Budget and 
Emergency Deficit Control Act of 1985, except that the 
term ‘direct spending’ shall also include provisions in ap-
propriation Acts that make outyear modifications to sub-
stantive law as described in section 3(4)(C) of the Statu-
tory Pay-As-You-Go Act of 2010. 
‘‘(b) If a bill, joint resolution, or amendment is con-
sidered pursuant to a special order of the House directing 
the Clerk to add as new matter at the end of such measure 
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the provisions of a separate measure as passed by the 
House, the provisions of such separate measure as passed 
by the House shall be included in the evaluation under 
paragraph (a) of the bill, joint resolution, or amendment. 
‘‘(c)(1) Except as provided in subparagraph (2), the 
evaluation under paragraph (a) shall exclude a provision 
expressly designated as an emergency for purposes of pay- 
as-you-go principles in the case of a point of order under 
this clause against consideration of— 
‘‘(A) a bill or joint resolution; 
‘‘(B) an amendment made in order as original 
text by a special order of business; 
‘‘(C) a conference report; or 
‘‘(D) an amendment between the Houses. 
‘‘(2) In the case of an amendment (other than one 
specified in subparagraph (1)) to a bill or joint resolution, 
the evaluation under paragraph (a) shall give no cog-
nizance to any designation of emergency. 
‘‘(3) If a bill, a joint resolution, an amendment made 
in order as original text by a special order of business, 
a conference report, or an amendment between the Houses 
includes a provision expressly designated as an emergency 
for purposes of pay-as-you-go principles, the Chair shall 
put the question of consideration with respect thereto.’’. 
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SEC. 202. REMOVING AUTHORITY OF BUDGET CHAIRMAN 
TO UNILATERALLY SET SPENDING LIMITS. 
Section 3(b) of H. Res. 5 (relating to budget enforce-
ment powers of chair of the Committee on the Budget) 
shall have no force or effect during the remainder of the 
112th Congress. 
TITLE 
III—MORE 
TRANS-
PARENCY AND BETTER AC-
COUNTING FOR LONG-TERM 
SPENDING 
Subtitle A—CBO and JCT Descrip-
tive Analyses for Second Decade 
Budget Impact and Net Present 
Value Estimates for Any Costs 
Escalate Outside 10-Year Budget 
Window 
SEC. 301. CBO AND JCT DESCRIPTIVE ANALYSES FOR SEC-
OND DECADE BUDGET IMPACT. 
(a) CBO.—Section 402 of the Congressional Budget 
Act of 1974 is amended by inserting ‘‘(a)’’ after ‘‘402.’’, 
by striking the last sentence, and by adding at the end 
the following new subsections: 
‘‘(b) Whenever the Director of the Congressional 
Budget Office submits a cost estimate under subsection 
(a) of a bill or resolution, the Director shall also provide 
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a descriptive analysis for the second decade budget impact 
of such bill or resolution. 
‘‘(c) The estimates, comparison, and description so 
submitted shall be included in the report accompanying 
such bill or resolution if timely submitted to such com-
mittee before such report is filed.’’. 
(b) JCT.—Section 202(f) of the Congressional Budg-
et Act of 1974 is amended by inserting ‘‘(1)’’ after ‘‘REV-
ENUE ESTIMATES.—’’ and by adding at the end the fol-
lowing new paragraph: 
‘‘(2) Whenever the Joint Committee on Taxation pro-
vides revenue estimates to the Congressional Budget Of-
fice under paragraph (1), the Joint Committee on Tax-
ation shall also provide a descriptive analysis for the sec-
ond decade budget impact.’’. 
SEC. 302. CBO AND JCT NET PRESENT VALUE ESTIMATES. 
(a) CBO.—Section 402 of the Congressional Budget 
Act of 1974 (as amended by section 301) is further 
amended by adding at the end the following new sub-
section: 
‘‘(d) Whenever the Director of the Congressional 
Budget Office submits a cost estimate under subsection 
(a) of a bill or resolution, the Director shall also provide 
a net present value estimate for costs outside the first 10- 
year budget window of such bill or resolution.’’. 
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(b) JCT.—Section 202(f) of the Congressional Budg-
et Act of 1974 (as amended by section 301) is further 
amended by adding at the end the following new para-
graph: 
‘‘(3) Whenever the Joint Committee on Taxation pro-
vides revenue estimates to the Congressional Budget Of-
fice under paragraph (1), the Joint Committee on Tax-
ation shall also provide a net present value estimate for 
costs outside the first 10-year budget window.’’. 
Subtitle B—OMB Reports on 
Unbudgeted Fiscal Exposures 
SEC. 311. OMB REPORTS ON UNBUDGETED FISCAL EXPO-
SURES. 
Not later than July 1 of each year, the Director of 
the Office of Management and Budget, in conjunction 
with the Secretary of the Treasury, shall publish a report 
on the size, scope, risk, and cost of the contingent liabil-
ities of the Government, including the implicit guarantees 
to government sponsored enterprises such as the Federal 
National Mortgage Association and the Federal Home 
Loan Mortgage Corporation. 
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Subtitle C—Accrual Accounting 
Report 
SEC. 321. ACCRUAL ACCOUNTING REPORT. 
(a) ACCRUAL-BASED ACCOUNTING SYSTEM.—The 
Director of the Office of Management and Budget shall 
develop a proposal for the implementation of an accrual- 
based accounting system for certain portions of the budg-
et, excluding— 
(1) insurance; 
(2) environmental liabilities; 
(3) Federal employee pensions; 
(4) retiree health benefits; and 
(5) other budget items where accrual-based ac-
counting would feasibly capture significant future 
cash resource requirements that are not reflected in 
the cash-based budget; where appropriate and rea-
sonable. 
(b) REPORT.—Within one year of the date of enact-
ment of this Act, the Director of the Office of Manage-
ment and Budget shall submit a report to Congress set-
ting forth the legislation necessary for the implementation 
of an accrual-based accounting system for part of the 
budget, along with any recommendations regarding its 
proposed legislation. 
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TITLE 
IV—RENEWED 
BUDGET 
PROCESS EMPHASIS ON FIS-
CAL SUSTAINABILITY 
Subtitle A—Reform of the 
President’s Budget 
SEC. 401. LONG-TERM FISCAL RESPONSIBILITY. 
Section 1105 of title 31, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(i)(1) The budget transmitted pursuant to sub-
section (a) for a fiscal year shall include— 
‘‘(A) a scorecard of progress in meeting the 
debt and deficit reduction targets set forth in sub-
paragraph (B); 
‘‘(B) a plan for long-term fiscal sustainability, 
defined as reducing to within 10 fiscal years and 
then maintaining a debt to potential gross domestic 
product (GDP) ratio, as defined by the Director of 
the Office of Management and Budget, of not more 
than 60 percent and an annual deficit to GDP ratio 
of not more than three percent; 
‘‘(C) a supplemental report from the Director of 
the Office of Management and Budget of the non-
budgeted fiscal exposures of the Government, which 
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may be included in the Analytical Perspectives re-
port, and shall include— 
‘‘(i) explicit liabilities and implicit promises 
embedded in the structure of current programs, 
including Federal credit programs; and 
‘‘(ii) a concise description of, including cost 
information for, such exposures; and 
‘‘(D) explicit goals for carrying out the long- 
term fiscal sustainability plan for the first fiscal year 
after the fiscal year of the budget submission and 
each of the nine ensuing fiscal years. 
‘‘(2) Unless the supplemental report is included in 
the Analytical Perspectives report referred to in paragraph 
(1)(C), then not later than March 15 of each calendar 
year, the Director of the Office of Management and Budg-
et shall transmit such report to the President and to Con-
gress. 
‘‘(3) Not later than two months after the supple-
mental report referred to in paragraph (1)(C) is trans-
mitted to the President and to Congress, the Comptroller 
General shall publish a report auditing the supplemental 
report referred to in paragraph (1)(C).’’. 
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Subtitle B—Reform of the 
Congressional Budget Resolution 
SEC. 411. LONG-TERM FISCAL RESPONSIBILITY. 
(a) CONTENT OF CONGRESSIONAL BUDGET RESOLU-
TION.—Section 301 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new 
subsection: 
‘‘(j) ADDITIONAL MATTERS
IN REPORT ACCOM-
PANYING THE RESOLUTION.—The report accompanying 
the resolution shall include— 
‘‘(1) a scorecard of progress in meeting the 
debt and deficit reduction targets set forth in para-
graph (2); and 
‘‘(2) a plan for long-term fiscal sustainability, 
defined as reducing to within 10 fiscal years and 
then maintaining a debt to gross domestic product 
(GDP) ratio of not more than 60 percent and an an-
nual deficit to GDP ratio of not more than three 
percent.’’. 
(b) ADDITIONAL MATTERS IN CBO REPORTS TO 
BUDGET COMMITTEES.—Section 202(e) of the Congres-
sional Budget Act of 1974 is amended by adding at the 
end the following new paragraph: 
‘‘(4) On or before February 15 of each year, 
the Director shall submit to the Committees on the 
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Budget of the House of Representatives and the 
Senate, a report that includes an assessment of the 
plan for long-term fiscal sustainability set forth in 
section 1105(i)(1) of title 31, United States Code, 
and include it in the most recent budget submission 
of the President, pursuant to subsection (a) of that 
section. When such plan is submitted to the Com-
mittees on the Budget, the Director shall place it on 
the public Web site of the Congressional Budget Of-
fice.’’. 
Subtitle C—Quadrennial Fiscal 
Sustainability Report 
SEC. 421. OMB QUADRENNIAL REPORTS. 
The Director of the Office of Management and Budg-
et, in consultation with the Secretary of the Treasury, 
shall publically issue, including by publishing on its Web 
site, a Quadrennial Fiscal Sustainability Report not later 
than April 1, 2013, and April 1 of every fourth year there-
after. The report shall address the long-term fiscal sus-
tainability of the Government, including its ability to man-
age finances to meet spending commitments, with a de-
tailed analysis of social insurance programs, for the budg-
et year and for the 30-year period commencing with the 
budget year. 
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Subtitle D—Presidential Address to 
Congress on Fiscal Sustainability 
SEC. 431. PRESIDENTIAL ADDRESS ON LONG-TERM FISCAL 
SUSTAINABILITY. 
During October 2011 and each October thereafter, 
there shall be convened a joint session of Congress at 
which the President shall be invited to give an address 
on the long-term fiscal sustainability of the Government. 
As used in the preceding sentence, the term ‘‘long-term 
fiscal sustainability’’ means the ability of the Government 
to achieve and then maintain a debt to gross domestic 
product ratio of not more than 60 percent and an annual 
deficit to gross domestic product ratio of not more than 
3 percent. 
TITLE V—MORE OVERSIGHT OF 
TAX EXPENDITURES 
Subtitle A—Identification of Tax 
Expenditures 
SEC. 501. JCT REPORTS ON TAX EXPENDITURES. 
Section 202(f) of the Congressional Budget Act of 
1974 is amended by inserting ‘‘(1)’’ before ‘‘For’’ and by 
adding at the end the following new paragraph: 
‘‘(2) Reports to Congress by the Joint Committee on 
Taxation identifying tax expenditures shall also— 
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‘‘(A) include an aggregate net cost of tax ex-
penditures that estimates the net impact of all tax 
expenditures on tax revenues, taking into account, 
where possible, interaction between such tax expend-
itures; and 
‘‘(B) compare this aggregate net cost with the 
total revenue currently raised by the Internal Rev-
enue Code of 1986.’’. 
SEC. 502. DEFINITION OF TAX SUBSIDY. 
Section 3 of the Congressional Budget and Impound-
ment Control Act of 1974 is amended by adding at the 
end the following new paragraph: 
‘‘(11) The term ‘tax subsidy’ means those tax 
expenditures that are deliberately inconsistent with 
an identifiable general rule of the present tax law, 
and that collect less revenue than does the general 
rule.’’. 
Subtitle B—Enforcement of Tax 
Expenditure Requirements 
SEC. 511. TAX EXPENDITURE POINTS OF ORDER. 
Title III of the Congressional Budget Act of 1974 
is amended by adding at the end the following new section: 
‘‘TAX EXPENDITURE POINTS OF ORDER 
‘‘SEC. 316. (a) TAX
EXPENDITURE
POINT
OF 
ORDER.—(1) It shall not be in order in the House of Rep-
resentatives or the Senate to consider any bill or joint res-
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olution reported by the Committee on Ways and Means 
of the House or the Committee on Finance of the Senate 
that proposes to amend the Internal Revenue Code of 
1986 to establish a new tax expenditure unless the com-
mittee report includes— 
‘‘(A) a clear statement of the purpose of the tax 
expenditure, including a justification of why this 
purpose is best achieved through the tax system 
rather than as an outlay; 
‘‘(B) an explanation of how the tax expenditure 
will be implemented and integrated with other re-
lated tax expenditures and outlays; 
‘‘(C) a macroeconomic impact analysis; and 
‘‘(D) a statement from the Joint Committee on 
Taxation explaining why a macroeconomic analysis 
is not calculable. 
‘‘(2) As used in paragraph (1), the term ‘macro-
economic impact analysis’ means— 
‘‘(A) an estimate prepared by the Joint Com-
mittee on Taxation of the changes in economic out-
put, employment, capital stock, and tax revenues ex-
pected to result from enactment of the applicable bill 
or joint resolution; and 
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H1302
rfrederick on DSKD9S0YB1PROD with BILLS