IV
104TH CONGRESS
2D SESSION
H. CON. RES. 170
Providing a sense of Congress that the Congressional Budget Office and
the Joint Committee on Taxation should use dynamic economic modeling
in addition to static economic modeling in the preparation of budgetary
estimates of proposed changes in Federal revenue law.
IN THE HOUSE OF REPRESENTATIVES
MAY 2, 1996
Mr. CAMPBELL (for himself, Mr. ARMEY, Mr. SAXTON, Mr. SANFORD, Mr.
THORNBERRY, Mr. EWING, Mr. MANZULLO, Mr. SHAYS, Mr. HORN, and
Mr. CUNNINGHAM) submitted the following concurrent resolution; which
was referred to the Committee on the Budget, and in addition to the
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
CONCURRENT RESOLUTION
Providing a sense of Congress that the Congressional Budget
Office and the Joint Committee on Taxation should use
dynamic economic modeling in addition to static eco-
nomic modeling in the preparation of budgetary esti-
mates of proposed changes in Federal revenue law.
Resolved by the House of Representatives (the Senate
concurring),
SECTION 1. SENSE OF CONGRESS.
It is the sense of Congress that to ensure that Con-
gress is presented with reliable information from the Con-
•HCON 170 IH
gressional Budget Office and the Joint Committee on Tax-
ation as to the dynamic macroeconomic feedback effects
to changes in Federal law and the probable behavioral re-
sponses of taxpayers, businesses, and other parties to such
changes. Specifically, the Congress intends that, while not
excluding any other estimating method, dynamic estimat-
ing techniques should also be used in estimating the fiscal
impact of proposals to change those laws, to the extent
that data are available to permit estimates to be made in
that 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 should 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, and
it should include a statement identifying those assump-
tions. The preceding sentence should apply only to a pro-
posed change that the Joint Committee on Taxation deter-
mines, pursuant to a static fiscal estimate, has a fiscal
impact in excess of $100,000,000 in any fiscal year.
•HCON 170 IH
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 should be prepared by the Congressional Budget Of-
fice of each such proposed change on the basis of assump-
tions that estimate the probable behavioral responses of
personal and business taxpayers and other relevant enti-
ties to that proposed change and the dynamic macro-
economic feedback effects of that proposed change, and
it should include a statement identifying those assump-
tions. The preceding sentence should apply only to a pro-
posed change that the Congressional Budget Office deter-
mines, 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 concur-
rent resolution of the effect that any legislation will have
on revenues shall rely upon Congressional Budget Office
data and shall be accompanied by a written statement
fully disclosing the economic, technical, and behavioral as-
sumptions that were made in producing that estimate.
•HCON 170 IH
SEC. 5. CONTRACTING AUTHORITY.
In performing the tasks specified in sections 2 and
3, 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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