I
105TH CONGRESS
2D SESSION
H. R. 4452
Requiring 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
AUGUST 6, 1998
Mr. CAMPBELL (for himself, Mr. ROYCE, Mr. SAXTON, and Mr. ARMEY) 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
Requiring the Congressional Budget Office and the Joint
Committee on Taxation to use dynamic economic model-
ing in addition to static economic modeling in the prepa-
ration 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 estimat-
ing the fiscal impact of proposals to change Federal laws,
to the extent that data are available to permit estimates
to be made in such a manner.
SEC. 
2. 
ESTIMATES 
OF 
THE 
JOINT 
COMMITTEE 
ON
TAXATION.
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 $100,000,000 in any fiscal year.
SEC. 3. ESTIMATES OF THE CONGRESSIONAL BUDGET
OFFICE.
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
$100,000,000 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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