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SEC. 504. LIMITATION ON LONG-TERM SPENDING. 
(a) IN GENERAL.—In the House, it shall not be in 
order to consider a bill or joint resolution reported by a 
committee (other than the Committee on Appropriations), 
or an amendment thereto or a conference report thereon, 
if the provisions of such measure have the net effect of 
increasing direct spending in excess of $5,000,000,000 for 
any period described in subsection (b). 
(b) TIME PERIODS.—The applicable periods for pur-
poses of this section are any of the four consecutive ten 
fiscal-year periods beginning with fiscal year 2025. 
SEC. 505. BUDGETARY TREATMENT OF CERTAIN TRANS-
ACTIONS. 
(a) 
IN
GENERAL.—Notwithstanding 
section 
302(a)(1) of the Congressional Budget Act of 1974, sec-
tion 13301 of the Budget Enforcement Act of 1990, and 
section 4001 of the Omnibus Budget Reconciliation Act 
of 1989, the report accompanying this concurrent resolu-
tion on the budget or the joint explanatory statement ac-
companying the conference report on any concurrent reso-
lution on the budget shall include in its allocation under 
section 302(a) of the Congressional Budget Act of 1974 
to the Committee on Appropriations amounts for the dis-
cretionary administrative expenses of the Social Security 
Administration and the United States Postal Service. 
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(b) SPECIAL RULE.—For purposes of applying sec-
tions 302(f) and 311 of the Congressional Budget Act of 
1974, estimates of the level of total new budget authority 
and total outlays provided by a measure shall include any 
off-budget discretionary amounts. 
(c) ADJUSTMENTS.—The chair of the Committee on 
the Budget may adjust the allocations, aggregates, and 
other appropriate levels for legislation reported by the 
Committee on Oversight and Government Reform that re-
forms the Federal retirement system, if such adjustments 
do not cause a net increase in the deficit for fiscal year 
2015 and the period of fiscal years 2015 through 2024. 
SEC. 506. APPLICATION AND EFFECT OF CHANGES IN ALLO-
CATIONS AND AGGREGATES. 
(a) APPLICATION.—Any adjustments of the alloca-
tions, aggregates, and other appropriate levels made pur-
suant to this concurrent resolution shall— 
(1) apply while that measure is under consider-
ation; 
(2) take effect upon the enactment of that 
measure; and 
(3) be published in the Congressional Record as 
soon as practicable. 
(b) EFFECT OF CHANGED ALLOCATIONS AND AG-
GREGATES.—Revised allocations and aggregates resulting 
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from these adjustments shall be considered for the pur-
poses of the Congressional Budget Act of 1974 as alloca-
tions and aggregates included in this concurrent resolu-
tion. 
(c) BUDGET COMPLIANCE.—The consideration of any 
bill or joint resolution, or amendment thereto or con-
ference report thereon, for which the chair of the Com-
mittee on the Budget makes adjustments or revisions in 
the allocations, aggregates, and other appropriate levels 
of this concurrent resolution shall not be subject to the 
points of order set forth in clause 10 of rule XXI of the 
Rules of the House of Representatives or section 504. 
SEC. 507. CONGRESSIONAL BUDGET OFFICE ESTIMATES. 
(a) FINDINGS.—The House finds the following: 
(1) Costs of Federal housing loans and loan 
guarantees are treated unequally in the budget. The 
Congressional Budget Office uses fair-value account-
ing to measure the costs of Fannie Mae and Freddie 
Mac, but determines the cost of other Federal loan 
and loan-guarantee programs on the basis of the 
Federal Credit Reform Act of 1990 (‘‘FCRA’’). 
(2) The fair-value accounting method uses dis-
count rates which incorporate the risk inherent to 
the type of liability being estimated in addition to 
Treasury discount rates of the proper maturity 
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length. In contrast, FCRA accounting solely uses the 
discount rates of the Treasury, failing to incorporate 
all of the risks attendant to these credit activities. 
(3) The Congressional Budget Office estimates 
that if fair-value were used to estimate the cost of 
all new credit activity in 2014, the deficit would be 
approximately $50 billion higher than under the cur-
rent methodology. 
(b) FAIR VALUE ESTIMATES.—Upon the request of 
the chair or ranking member of the Committee on the 
Budget, any estimate prepared by the Director of the Con-
gressional Budget Office for a measure under the terms 
of title V of the Congressional Budget Act of 1974, ‘‘credit 
reform’’, as a supplement to such estimate shall, to the 
extent practicable, also provide an estimate of the current 
actual or estimated market values representing the ‘‘fair 
value’’ of assets and liabilities affected by such measure. 
(c) FAIR VALUE ESTIMATES FOR HOUSING PRO-
GRAMS.—Whenever the Director of the Congressional 
Budget Office prepares an estimate pursuant to section 
402 of the Congressional Budget Act of 1974 of the costs 
which would be incurred in carrying out any bill or joint 
resolution and if the Director determines that such bill 
or joint resolution has a cost related to a housing or resi-
dential mortgage program under the FCRA, then the Di-
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rector shall also provide an estimate of the current actual 
or estimated market values representing the ‘‘fair value’’ 
of assets and liabilities affected by the provisions of such 
bill or joint resolution that result in such cost. 
(d) ENFORCEMENT.—If the Director of the Congres-
sional Budget Office provides an estimate pursuant to 
subsection (b) or (c), the chair of the Committee on the 
Budget may use such estimate to determine compliance 
with the Congressional Budget Act of 1974 and other 
budgetary enforcement controls. 
SEC. 508. TRANSFERS FROM THE GENERAL FUND OF THE 
TREASURY TO THE HIGHWAY TRUST FUND 
THAT INCREASE PUBLIC INDEBTEDNESS. 
For purposes of the Congressional Budget Act of 
1974, the Balanced Budget and Emergency Deficit Con-
trol Act of 1985, or the rules or orders of the House of 
Representatives, a bill or joint resolution, or an amend-
ment thereto or conference report thereon, that transfers 
funds from the general fund of the Treasury to the High-
way Trust Fund shall be counted as new budget authority 
and outlays equal to the amount of the transfer in the 
fiscal year the transfer occurs. 
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SEC. 510. EXERCISE OF RULEMAKING POWERS. 
The House adopts the provisions of this title— 
(1) as an exercise of the rulemaking power of 
the House of Representatives and as such they shall 
be considered as part of the rules of the House of 
Representatives, and these rules shall supersede 
other rules only to the extent that they are incon-
sistent with other such rules; and 
(2) with full recognition of the constitutional 
right of the House of Representatives to change 
those rules at any time, in the same manner, and to 
the same extent as in the case of any other rule of 
the House of Representatives. 
TITLE VI—POLICY STATEMENTS 
SEC. 601. POLICY STATEMENT ON ECONOMIC GROWTH AND 
JOB CREATION. 
(a) FINDINGS.—The House finds the following: 
(1) Although the United States economy tech-
nically emerged from recession nearly five years ago, 
the subsequent recovery has felt more like a malaise 
than a rebound. Real gross domestic product (GDP) 
growth over the past four years has averaged just 
over 2 percent, well below the 3 percent trend rate 
of growth in the United States. 
(2) The Congressional Budget Office (CBO) did 
a study in late 2012 examining why the United 
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States economy was growing so slowly after the re-
cession. They found, among other things, that 
United States economic output was growing at less 
than half of the typical rate exhibited during other 
recoveries since World War II. CBO said that about 
two-thirds of this ‘‘growth gap’’ was due to a pro-
nounced sluggishness in the growth of potential 
GDP—particularly in potential employment levels 
(such as people leaving the labor force) and the 
growth in productivity (which is in turn related to 
lower capital investment). 
(3) The prolonged economic sluggishness is par-
ticularly troubling given the amount of fiscal and 
monetary policy actions taken in recent years to 
cushion the depth of the downturn and to spark 
higher rates of growth and employment. In addition 
to the large stimulus package passed in early 2009, 
many other initiatives have been taken to boost 
growth, such as the new homebuyer tax credit and 
the ‘‘cash for clunkers’’ program. These stimulus ef-
forts may have led to various short term ‘‘pops’’ in 
activity but the economy and job market has since 
reverted back to a sub-par trend. 
(4) The unemployment rate has declined in re-
cent years, from a peak of nearly 10 percent in 
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2009-2010 to 6.7 percent in the latest month. How-
ever, a significant chunk of this decline has been due 
to people leaving the labor force (and therefore no 
longer being counted as ‘‘unemployed’’) and not 
from a surge in employment. The slow decline in the 
unemployment rate in recent years has occurred 
alongside a steep decline in the economy’s labor 
force participation rate. The participation rate 
stands at 63.0 percent, close to the lowest level since 
1978. The flipside of this is that over 90 million 
Americans are now ‘‘on the sidelines’’ and not in the 
labor force, representing a 10 million increase since 
early 2009. 
(5) Real median household income declined for 
the fifth consecutive year in 2012 (latest data avail-
able) and, at just over $51,000, is currently at its 
lowest level since 1995. Weak wage and income 
growth as a result of a subpar labor market not only 
means lower tax revenue coming in to the Treasury, 
it also means higher government spending on income 
support programs. 
(6) A stronger economy is vital to lowering def-
icit levels and eventually balancing the budget. Ac-
cording to CBO, if annual real GDP growth is just 
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0.1 percentage point higher over the budget window, 
deficits would be reduced by $311 billion. 
(7) This budget resolution therefore embraces 
pro-growth policies, such as fundamental tax reform, 
that will help foster a stronger economy and more 
job creation. 
(8) Reining in government spending and low-
ering budget deficits has a positive long-term impact 
on the economy and the budget. According to CBO, 
a significant deficit reduction package (i.e. $4 tril-
lion), would boost longer-term economic output by 
1.7 percent. Their analysis concludes that deficit re-
duction creates long-term economic benefits because 
it increases the pool of national savings and boosts 
investment, thereby raising economic growth and job 
creation. 
(9) The greater economic output that stems 
from a large deficit reduction package would have a 
sizeable impact on the Federal budget. For instance, 
higher output would lead to greater revenues 
through the increase in taxable incomes. Lower in-
terest rates, and a reduction in the stock of debt, 
would lead to lower government spending on net in-
terest expenses. According to CBO, this dynamic 
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would reduce unified budget deficits by an amount 
sufficient to produce a surplus in fiscal year 2024. 
(b) POLICY ON ECONOMIC GROWTH AND JOB CRE-
ATION.—It is the policy of this resolution to promote fast-
er economic growth and job creation. By putting the budg-
et on a sustainable path, this resolution ends the debt- 
fueled uncertainty holding back job creators. Reforms to 
the tax code to put American businesses and workers in 
a better position to compete and thrive in the 21st century 
global economy. This resolution targets the regulatory red 
tape and cronyism that stack the deck in favor of special 
interests. All of the reforms in this resolution serve as 
means to the larger end of growing the economy and ex-
panding opportunity for all Americans. 
SEC. 602. POLICY STATEMENT ON TAX REFORM. 
(a) FINDINGS.—The House finds the following: 
(1) A world-class tax system should be simple, 
fair, and promote (rather than impede) economic 
growth. The United States tax code fails on all three 
counts – it is notoriously complex, patently unfair, 
and highly inefficient. The tax code’s complexity dis-
torts decisions to work, save, and invest, which leads 
to slower economic growth, lower wages, and less job 
creation. 
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(2) Over the past decade alone, there have been 
more than 4,400 changes to the tax code, more than 
one per day. Many of the major changes over the 
years have involved carving out special preferences, 
exclusions, or deductions for various activities or 
groups. These loopholes add up to more than $1 tril-
lion per year and make the code unfair, inefficient, 
and highly complex. 
(3) In addition, these tax preferences are dis-
proportionately used by upper-income individuals. 
(4) The large amount of tax preferences that 
pervade the code end up narrowing the tax base. A 
narrow tax base, in turn, requires much higher tax 
rates to raise a given amount of revenue. 
(5) It is estimated that American taxpayers end 
up spending $160 billion and roughly 6 billion hours 
a year complying with the tax code – a waste of time 
and resources that could be used in more productive 
activities. 
(6) Standard economic theory shows that high 
marginal tax rates dampen the incentives to work, 
save, and invest, which reduces economic output and 
job creation. Lower economic output, in turn, mutes 
the intended revenue gain from higher marginal tax 
rates. 
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(7) Roughly half of United States active busi-
ness income and half of private sector employment 
are derived from business entities (such as partner-
ships, S corporations, and sole proprietorships) that 
are taxed on a ‘‘pass-through’’ basis, meaning the 
income flows through to the tax returns of the indi-
vidual owners and is taxed at the individual rate 
structure rather than at the corporate rate. Small 
businesses, in particular, tend to choose this form 
for Federal tax purposes, and the top Federal rate 
on such small business income reaches 44.6 percent. 
For these reasons, sound economic policy requires 
lowering marginal rates on these pass-through enti-
ties. 
(8) The United States corporate income tax 
rate (including Federal, State, and local taxes) sums 
to just over 39 percent, the highest rate in the in-
dustrialized world. Tax rates this high suppress 
wages and discourage investment and job creation, 
distort business activity, and put American busi-
nesses at a competitive disadvantage with foreign 
competitors. 
(9) By deterring potential investment, the 
United States corporate tax restrains economic 
growth and job creation. The United States tax rate 
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differential with other countries also fosters a vari-
ety of complicated multinational corporate behaviors 
intended to avoid the tax, which have the effect of 
moving the tax base offshore, destroying American 
jobs, and decreasing corporate revenue. 
(10) The ‘‘worldwide’’ structure of United 
States international taxation essentially taxes earn-
ings of United States firms twice, putting them at 
a significant competitive disadvantage with competi-
tors with more competitive international tax systems. 
(11) Reforming the United States tax code to 
a more competitive international system would boost 
the competitiveness of United States companies op-
erating abroad and it would also greatly reduce tax 
avoidance. 
(12) The tax code imposes costs on American 
workers through lower wages, on consumers in high-
er prices, and on investors in diminished returns. 
(13) Revenues have averaged about 17.5 per-
cent of the economy throughout modern American 
history. Revenues rise above this level under current 
law to 18.4 percent of the economy by the end of the 
10-year budget window. 
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(14) Attempting to raise revenue through tax 
increases to meet out-of-control spending would 
damage the economy. 
(15) This resolution also rejects the idea of in-
stituting a carbon tax in the United States, which 
some have offered as a ‘‘new’’ source of revenue. 
Such a plan would damage the economy, cost jobs, 
and raise prices on American consumers. 
(16) Closing tax loopholes to fund spending 
does not constitute fundamental tax reform. 
(17) The goal of tax reform should be to curb 
or eliminate loopholes and use those savings to lower 
tax rates across the board—not to fund more waste-
ful Government spending. Tax reform should be rev-
enue-neutral and should not be an excuse to raise 
taxes on the American people. Washington has a 
spending problem, not a revenue problem. 
(b) POLICY ON TAX REFORM.—It is the policy of this 
resolution that Congress should enact legislation that pro-
vides for a comprehensive reform of the United States tax 
code to promote economic growth, create American jobs, 
increase wages, and benefit American consumers, inves-
tors, and workers through revenue-neutral fundamental 
tax reform that— 
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(1) simplifies the tax code to make it fairer to 
American families and businesses and reduces the 
amount of time and resources necessary to comply 
with tax laws; 
(2) substantially lowers tax rates for individ-
uals, with a goal of achieving a top individual rate 
of 25 percent and consolidating the current seven in-
dividual income tax brackets into two brackets with 
a first bracket of 10 percent; 
(3) repeals the Alternative Minimum Tax; 
(4) reduces the corporate tax rate to 25 per-
cent; and 
(5) transitions the tax code to a more competi-
tive system of international taxation. 
SEC. 603. POLICY STATEMENT ON REPLACING THE PRESI-
DENT’S HEALTH CARE LAW. 
(a) FINDINGS.—The House finds the following: 
(1) The President’s health care law has failed 
to reduce health care premiums as promised. Health 
care premiums were supposed to decline by $2,500. 
Instead, according to the 2013 Employer Health 
Benefits Survey, health care premiums have in-
creased by 5 percent for individual plans and 4 per-
cent for family since 2012. Moreover, according to 
a report from the Energy and Commerce Committee, 
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