I 
109TH CONGRESS 
1ST SESSION H. R. 2842
To require the Congressional Budget Office and the Joint Committee on 
Taxation to use dynamic economic modeling in addition to static eco-
nomic modeling in the preparation of budgetary estimates of proposed 
changes in Federal revenue law. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2005
Mr. FLAKE (for himself, Mr. DREIER, Mr. SESSIONS, Mr. HENSARLING, Mr. 
HERGER, Mr. GARRETT of New Jersey, Mr. MILLER of Florida, Mr. 
MCHENRY, Mr. CONAWAY, Mr. ADERHOLT, Mr. PENCE, Mr. FRANKS of 
Arizona, Mr. KING of Iowa, Mr. HOSTETTLER, Mr. SHADEGG, Mr. 
NEUGEBAUER, Mr. WILSON of South Carolina, Mr. GINGREY, Mr. SAM 
JOHNSON of Texas, Mrs. MYRICK, Mrs. MUSGRAVE, Mr. FEENEY, Mrs. 
CUBIN, Mr. AKIN, Mr. BARRETT of South Carolina, Mr. BARTLETT of 
Maryland, and Mr. RYUN of Kansas) introduced 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 subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To require the Congressional Budget Office and the Joint 
Committee on Taxation to use dynamic economic mod-
eling in addition to static economic modeling in the prep-
aration of budgetary estimates of proposed changes in 
Federal revenue law.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SENSE OF CONGRESS. 
It is the sense of Congress that it is necessary to en-
sure that Congress is presented with reliable information 
from the Congressional Budget Office and the Joint Com-
mittee on Taxation as to the dynamic macroeconomic feed-
back effects to changes in Federal law and the probable 
behavioral responses of taxpayers, businesses, and other 
parties to such changes. Specifically, the Congress intends 
that, while not excluding any other estimating method, dy-
namic estimating techniques shall also be used in esti-
mating the fiscal impact of proposals to change Federal 
laws, to the extent that data are available to permit esti-
mates to be made in such a manner. 
SEC. 2. ESTIMATES OF THE JOINT COMMITTEE ON TAX-
ATION. 
In addition to any other estimates it may prepare of 
any proposed change in Federal revenue law, a fiscal esti-
mate shall be prepared by the Joint Committee on Tax-
ation of each such proposed change on the basis of as-
sumptions that estimate the probable behavioral responses 
of personal and business taxpayers and other relevant en-
tities to that proposed change and the dynamic macro-
economic feedback effects of that proposed change. The 
preceding sentence shall apply only to a proposed change 
that the Joint Committee on Taxation determines, pursu-
ant to a static fiscal estimate, has a fiscal impact in excess 
of $250,000,000 in any fiscal year. 
SEC. 3. ESTIMATES OF THE CONGRESSIONAL BUDGET OF-
FICE. 
In addition to any other estimates it may prepare of 
any proposed change in Federal revenue law, a fiscal esti-
mate shall be prepared by the Congressional Budget Office 
of each such proposed change on the basis of assumptions 
that estimate the probable behavioral responses of per-
sonal and business taxpayers and other relevant entities 
to that proposed change and the dynamic macroeconomic 
feedback effects of that proposed change. The preceding 
sentence shall apply only to a proposed change that the 
Congressional Budget Office determines, pursuant to a 
static fiscal estimate, has a fiscal impact in excess of 
$250,000,000 in any fiscal year. 
SEC. 4. DISCLOSURE OF ASSUMPTIONS. 
Any report to Congress or the public made by the 
Joint Committee on Taxation or the Congressional Budget 
Office that contains an estimate made under this Act of 
the effect that any legislation will have on revenues shall 
be accompanied by—
(1) a written statement fully disclosing the eco-
nomic, technical, and behavioral assumptions that 
were made in producing that estimate, and
(2) the static fiscal estimate made with respect 
to the same legislation and a written statement of 
the economic, technical, and behavioral assumptions 
that were made in producing that estimate. 
SEC. 5. CONTRACTING AUTHORITY. 
In performing the tasks specified in this Act, the 
Joint Committee on Taxation and the Congressional 
Budget Office may, subject to the availability of appro-
priations, enter into contracts with universities or other 
private or public organizations to perform such esti-
mations or to develop protocols and models for making 
such estimates.
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