Pro-Growth Budgeting Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pro-Growth Budgeting Act of 2014''.

SEC. 2. MACROECONOMIC IMPACT ANALYSES.

    (a) In General.--Part A of title IV of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new section:

          ``macroeconomic impact analysis of major legislation

    ``Sec. 407.  (a) Congressional Budget Office.--The Congressional 
Budget Office shall, to the extent practicable, prepare for each major 
bill or resolution reported by any committee of the House of 
Representatives or the Senate (except the Committee on Appropriations 
of each House), as a supplement to estimates prepared under section 
402, a macroeconomic impact analysis of the budgetary effects of such 
bill or resolution for the ten fiscal-year period beginning with the 
first fiscal year for which an estimate was prepared under section 402 
and each of the next three ten fiscal-year periods. The Director shall 
submit to such committee the macroeconomic impact analysis, together 
with the basis for the analysis. As a supplement to estimates prepared 
under section 402, all such information so submitted shall be included 
in the report accompanying such bill or resolution.
    ``(b) Economic Impact.--The analysis prepared under subsection (a) 
shall describe the potential economic impact of the applicable major 
bill or resolution on major economic variables, including real gross 
domestic product, business investment, the capital stock, employment, 
interest rates, and labor supply. The analysis shall also describe the 
potential fiscal effects of the bill or resolution, including any 
estimates of revenue increases or decreases resulting from changes in 
gross domestic product. To the extent practicable, the analysis should 
use a variety of economic models in order to reflect the full range of 
possible economic outcomes resulting from the bill or resolution. The 
analysis (or a technical appendix to the analysis) shall specify the 
economic and econometric models used, sources of data, relevant data 
transformations, and shall include such explanation as is necessary to 
make the models comprehensible to academic and public policy analysts.
    ``(c) Reporting on Accuracy of Macroeconomic Impact Analyses.--Upon 
completion of the fifth fiscal year beginning after the date of 
enactment of any major bill or joint resolution for which the 
Congressional Budget Office prepared an analysis under subsection (a), 
the Congressional Budget Office shall report on the accuracy of the 
original macroeconomic impact analysis of such enacted bill or joint 
resolution and submit these reports to the Committees on the Budget of 
the House of Representatives and the Senate.
    ``(d) Definitions.--As used in this section--
            ``(1) the term `macroeconomic impact analysis' means--
                    ``(A) an estimate of the changes in economic 
                output, employment, interest rates, capital stock, and 
                tax revenues expected to result from enactment of the 
                proposal;
                    ``(B) an estimate of revenue feedback expected to 
                result from enactment of the proposal; and
                    ``(C) a statement identifying the critical 
                assumptions and the source of data underlying that 
                estimate;
            ``(2) the term `major bill or resolution' means any bill or 
        resolution if the gross budgetary effects of such bill or 
        resolution for any fiscal year in the period for which an 
        estimate is prepared under section 402 is estimated to be 
        greater than .25 percent of the current projected gross 
        domestic product of the United States for any such fiscal year;
            ``(3) the term `budgetary effect', when applied to a major 
        bill or resolution, means the changes in revenues, outlays, 
        deficits, and debt resulting from that measure; and
            ``(4) the term `revenue feedback' means changes in revenue 
        resulting from changes in economic growth as the result of the 
        enactment of any major bill or resolution.
    ``(e) Legislation With Revenue Provisions.--The macroeconomic 
analysis described in subsection (c) shall rely on macroeconomic 
analysis prepared by the Joint Committee on Taxation for any provisions 
of such legislation that are described in section 201(f). For 
legislation consisting solely of provisions described in section 
201(f), the macroeconomic analysis described in subsection (c) shall be 
prepared by the Joint Committee on Taxation.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 406 the 
following new item:

``Sec. 407. Macroeconomic impact analysis of major legislation.''.

            Passed the House of Representatives April 4, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Pro-Growth Budgeting Act of 2014 - Amends the Congressional Budget Act of 1974 (CBA) to require the Congressional Budget Office (CBO) to prepare for each major bill or resolution reported by any congressional committee (except the congressional appropriations committees), as a supplement to CBO cost estimates, a macroeconomic impact analysis of the budgetary effects of such legislation for the 10-fiscal year period beginning with the first fiscal year for which such estimate was prepared and each of the next three 10-fiscal year periods. Defines &quot;major bill or resolution&quot; as any bill or resolution whose budgetary effects, for any fiscal year in the period for which a CBO cost estimate is prepared, is estimated to be greater than .25% of the current projected U.S. gross domestic product (GDP) for that fiscal year. Requires the analysis to describe: (1) the potential economic impact of the bill or resolution on major economic variables, including real GDP, business investment, the capital stock, employment, interest rates, and labor supply; and (2) the potential fiscal effects of the measure, including any estimates of revenue increases or decreases resulting from changes in GDP. Requires the analysis (or a technical appendix to it) to specify the economic and econometric models used, sources of data, relevant data transformations, as well as any explanation necessary to make the models comprehensible to academic and public policy analysts. Requires the CBO, five fiscal years after the enactment of any major bill or joint resolution for which it prepared a macroeconomic impact analysis, to report to the congressional budget committees on the accuracy of the original analysis.