Transparent and Sustainable Budget Act of 2010 - Requires the President's annual budget to include: (1) a scorecard of progress in meeting debt and deficit reduction targets; (2) a plan for long-term fiscal sustainability, defined as reducing to within 10 fiscal years and then maintaining a debt to potential gross domestic product (GDP) ratio of up to 60% and an annual deficit to GDP ratio of up to 3%; and (3) a supplemental report from the Director of the Office of Management and Budget (OMB) of the nonbudgeted fiscal exposures of the government.
Expresses the sense of Congress that the recommendations reported to Congress by the National Commission on Fiscal Responsibility and Reform should receive prompt consideration, and that neither chamber should obstruct a final roll call vote on such recommendations.
Requires the OMB director to issue Quadrennial Fiscal Sustainability Reports.
Requires a joint session of Congress to be convened every October at which the President shall be invited to give an address on the long-term fiscal sustainability of the government.
Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to prescribe requirements for a discounted baseline, an alternative projection of current-year levels of new budget authority, outlays, revenues, and the surplus or deficit into the budget year and the outyears, for a minimum of 30 years, annually discounted for: (1) the present value of money, set at the prevailing interest rate for 30-year Treasury bonds; and (2) the uncertainty of policies announced for the outyears, set at 10%.
Amends the Congressional Budget Act of 1974 (CBA) to require the Congressional Budget Office (CBO) to prepare: (1) an alternative net cost estimate for each public bill or joint resolution reported by any congressional committee (except the congressional appropriations committees), including amendments and conference reports; and (2) a statement of whether the measure's alternative net cost would exceed $5 billion.
Makes it out of order in both chambers to consider the legislation if it does exceed such cost, as adjusted annually for inflation.
Requires the CBO Director to make an annual Discounted Score Deficit Control report publicly available.
Requires the OMB Director to develop and report to Congress a proposal for the implementation of an accrual-based accounting system for certain portions of the budget.
Requires the OMB Director also to report to Congress on the various scenarios by which the receipts and disbursements of the following entities could be counted as new budget authority, outlays, receipts, or deficit or surplus for the purposes of the federal budget: (1) government-sponsored enterprises (GSEs), including the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the various trust funds, including the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Highway Trust Fund.
Amends the CBA to require reports to Congress by the Joint Committee on Taxation identifying tax expenditures to include: (1) an aggregate net cost of tax expenditures that estimates the net impact of all tax expenditures on tax revenues; and (2) a comparison of this aggregate net cost with the total revenue currently raised by the Internal Revenue Code.
Amends the Congressional Budget and Impoundment Control Act of 1974 to define "tax subsidy" to mean those tax expenditures that: (1) are deliberately inconsistent with an identifiable general rule of the present tax law; and (2) collect less revenue than does the general rule.
Amends the CBA to set forth points of order against consideration of legislation establishing new tax expenditures, or containing a new tax subsidy or modifying an existing one, unless certain requirements are met, including a macroeconomic impact analysis.
Prescribes requirements for executive branch reporting of tax expenditures.
Requires the Secretary of the Treasury to develop and report to Congress on the legislative steps necessary to implement an electronic income tax filing system.
Requires: (1) the Government Accountability Office (GAO) to publish written recommendations for improving the rules of the Internal Revenue Service (IRS) to facilitate the evaluation of tax expenditures; and (2) the Secretary of the Treasury to report to Congress on how the Secretary intends to use the IRS panel data sample created to facilitate the evaluation of savings-related tax expenditures.
Requires the CBO Director to conduct, on an ongoing basis, performance reviews of tax expenditures, as identified by the Joint Committee on Taxation.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5752 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5752
To make the Federal budget process more transparent and to make future
budgets more sustainable.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 15, 2010
Mr. Quigley (for himself, Mr. Minnick, and Mr. Foster) 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 subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To make the Federal budget process more transparent and to make future
budgets more sustainable.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Transparent and Sustainable Budget
Act of 2010''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) the public debt as a share of gross domestic product
should be stabilized at not more than 60 percent within 10
fiscal years;
(2) annual deficits as a share of gross domestic product
should be reduced to not more than three percent within 10
fiscal years;
(3) the Joint Committee on Taxation found that 247 tax
expenditures totaled $1.2 trillion in 2008, greater than all
Federal discretionary spending in that year; and
(4) tax expenditures are analogous to spending programs,
and future budgets and deficit control measures should reflect
this fact.
(b) Purpose.--The Congress declares that it is essential--
(1) to establish the sustainability of public debt and
annual deficits as a fundamental objective of the budget
process;
(2) to ensure that the budget of the United States
Government is fully transparent, comprehensible, and accurate;
(3) to establish effective controls over tax expenditures
and to integrate them into the budget process; and
(4) to initiate a public discussion about fiscal
sustainability and budget transparency.
SEC. 3. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Findings and purpose.
Sec. 3. Table of contents.
TITLE I--BUDGET PROCESS REFORMS
Subtitle A--Reform of the President's Budget
Sec. 101. Long-term fiscal responsibility.
Subtitle B--Reform of the Congressional Budget Resolution
Sec. 111. Long-term fiscal responsibility.
Subtitle C--Prompt Consideration of Recommendations of the National
Commission on Fiscal Responsibility and Reform
Sec. 121. Prompt consideration of recommendations of the National
Commission on Fiscal Responsibility and
Reform.
Subtitle D--Quadrennial Fiscal Sustainability Report
Sec. 131. OMB quadrennial reports.
Subtitle E--Presidential Address to Congress on Fiscal Sustainability
Sec. 141. Presidential address on long-term fiscal sustainability.
TITLE II--ACCOUNTING AND SCORING REFORMS
Subtitle A--Discounted Baseline
Sec. 201. Discounted baseline.
Subtitle B--Alternative Net Cost Estimate
Sec. 211. Alternative analysis by Congressional Budget Office.
Subtitle C--Deficit Control Mechanism
Sec. 221. Alternative net cost estimate by Congressional Budget Office.
Subtitle D--Accrual Accounting Report
Sec. 231. Accrual accounting report.
Subtitle E--On-Budget Status of Trust Funds and GSEs
Sec. 241. OMB report respecting budgetary status of trust funds and
GSEs.
TITLE III--TAX EXPENDITURE REFORMS
Subtitle A--Identification of Tax Expenditures
Sec. 301. JCT reports on tax expenditures.
Sec. 302. Definition of tax subsidy.
Subtitle B--Enforcement of Tax Expenditure Requirements
Sec. 311. Tax expenditure points of order.
Subtitle C--Executive Branch Reporting of Tax Expenditures
Sec. 331. Executive branch reporting of tax expenditures.
Subtitle D--Tax Expenditure Data
Sec. 341. Development of electronic income tax filing system.
Sec. 342. GAO report on tax expenditures.
Sec. 343. Treasury report on tax expenditures.
Subtitle E--Tax Expenditure Performance Reviews
Sec. 351. CBO tax expenditure performance reviews.
TITLE I--BUDGET PROCESS REFORMS
Subtitle A--Reform of the President's Budget
SEC. 101. LONG-TERM FISCAL RESPONSIBILITY.
Section 1105 of title 31, United States Code, is amended by adding
at the end the following new subsection:
``(i)(1) The budget transmitted pursuant to subsection (a) for a
fiscal year shall include--
``(A) a scorecard of progress in meeting the debt and
deficit reduction targets set forth in subparagraph (B);
``(B) a plan for long-term fiscal sustainability, defined
as reducing to within 10 fiscal years and then maintaining a
debt to potential gross domestic product (GDP) ratio, as
defined by the Director of the Office of Management and Budget,
of not more than 60 percent and an annual deficit to GDP ratio
of not more than three percent;
``(C) a supplemental report from the Director of the Office
of Management and Budget of the nonbudgeted fiscal exposures of
the Government, which may be included in the Analytical
Perspectives report, and shall include--
``(i) explicit liabilities and implicit promises
embedded in the structure of current programs,
including Federal credit programs; and
``(ii) a concise description of, including cost
information for, such exposures; and
``(D) explicit goals for carrying out the long-term fiscal
sustainability plan for the first fiscal year after the fiscal
year of the budget submission and each of the nine ensuing
fiscal years.
``(2) Unless the supplemental report is included in the Analytical
Perspectives report referred to in paragraph (1)(C), then not later
than March 15 of each calendar year, the Director of the Office of
Management and Budget shall transmit such report to the President and
to Congress.
``(3) Not later than two months after the supplemental report
referred to in paragraph (1)(C) is transmitted to the President and to
Congress, the Comptroller General shall publish a report auditing the
supplemental report referred to in paragraph (1)(C).''.
Subtitle B--Reform of the Congressional Budget Resolution
SEC. 111. LONG-TERM FISCAL RESPONSIBILITY.
(a) Content of Congressional Budget Resolution.--Section 301 of the
Congressional Budget Act of 1974 is amended by adding at the end the
following new subsection:
``(j) Additional Matters in Report Accompanying the Resolution.--
The report accompanying the resolution shall include--
``(1) a scorecard of progress in meeting the debt and
deficit reduction targets set forth in paragraph (2); and
``(2) a plan for long-term fiscal sustainability, defined
as reducing to within 10 fiscal years and then maintaining a
debt to gross domestic product (GDP) ratio of not more than 60
percent and an annual deficit to GDP ratio of not more than
three percent.''.
(b) Additional Matters in CBO Reports to Budget Committees.--
Section 202(e) of the Congressional Budget Act of 1974 is amended by
adding at the end the following new paragraph:
``(4) On or before February 15 of each year, the Director
shall submit to the Committees on the Budget of the House of
Representatives and the Senate, a report that includes an
assessment of the plan for long-term fiscal sustainability set
forth in section 1105(i)(1) of title 31, United States Code,
and include it in the most recent budget submission of the
President, pursuant to subsection (a) of that section. When
such plan is submitted to the Committees on the Budget, the
Director shall place it on the public Web site of the
Congressional Budget Office.''.
Subtitle C--Prompt Consideration of Recommendations of the National
Commission on Fiscal Responsibility and Reform
SEC. 121. PROMPT CONSIDERATION OF RECOMMENDATIONS OF THE NATIONAL
COMMISSION ON FISCAL RESPONSIBILITY AND REFORM.
It is the sense of Congress that the recommendations reported to
Congress by the National Commission on Fiscal Responsibility and Reform
should receive prompt consideration, and that neither the House of
Representatives nor the Senate should obstruct a final roll call vote
on such recommendations.
Subtitle D--Quadrennial Fiscal Sustainability Report
SEC. 131. OMB QUADRENNIAL REPORTS.
The Director of the Office of Management and Budget, in
consultation with the Secretary of the Treasury, shall publically
issue, including by publishing on its Web site, a Quadrennial Fiscal
Sustainability Report not later than April 1, 2013 and April 1 of every
fourth year thereafter. The report shall address the long-term fiscal
sustainability of the Government, including its ability to manage
finances to meet spending commitments, with a detailed analysis of
social insurance programs, for the budget year and for the 30-year
period commencing with the budget year.
Subtitle E--Presidential Address to Congress on Fiscal Sustainability
SEC. 141. PRESIDENTIAL ADDRESS ON LONG-TERM FISCAL SUSTAINABILITY.
During October 2011 and each October thereafter, there shall be
convened a joint session of Congress at which the President shall be
invited to give an address on the long-term fiscal sustainability of
the Government. As used in the preceding sentence, the term ``long-term
fiscal sustainability'' means the ability of the Government to achieve
and then maintain a debt to gross domestic product ratio of not more
than 60 percent and an annual deficit to gross domestic product ratio
of not more than 3 percent.
TITLE II--ACCOUNTING AND SCORING REFORMS
Subtitle A--Discounted Baseline
SEC. 201. DISCOUNTED BASELINE.
Section 257 of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) At the end of subsection (a), insert the following new
sentence: ``For any budget year the discounted baseline refers
to an alternative projection of current-year levels of new
budget authority, outlays, revenues, and the surplus or deficit
into the budget year and the outyears, for a minimum of 30
years, based on laws enacted through the applicable year, and
annually discounted for--
``(1) the present value of money, set at the prevailing
interest rate for 30-year Treasury bonds; and
``(2) the uncertainty of policies announced for the
outyears, set at 10 percent.''.
(2) At the end, add the following new subsection:
``(f) Discounted Baseline.--The discounted baseline shall be
computed using the same exceptions, assumptions, and other qualifying
guidelines applicable to the baseline under this section.''.
Subtitle B--Alternative Net Cost Estimate
SEC. 211. ALTERNATIVE ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.
(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:
``alternative analysis by congressional budget office
``Sec. 407. (a) Alternative Net Cost Estimates.--To the extent
practicable, the Director of the Congressional Budget Office shall
prepare for each bill or joint resolution of a public character
reported by any committee of the House of Representatives or the Senate
(except the Committee on Appropriations of each House) and for
amendments thereto and conference reports thereon an alternative net
cost estimate.
``(b) Calculation.--The alternative net cost estimate of proposed
measures shall be calculated by comparing the current discounted
baseline with an alternative discounted baseline that accounts for the
policy changes in the proposed measures reported from committee.
``(c) Period.--The alternative net cost estimate shall cover as
many years as the Director deems appropriate for the applicable
legislation to have a significant budgetary impact, but for not more
than 30 fiscal years.
``(d) Submissions.--To the extent practicable, the alternative net
cost estimate shall be submitted--
``(1) for a reported bill or resolution referred to in
subsection (a), to the House of Representatives or the Senate,
as applicable, at the same time as the submission under section
402;
``(2) for any amendment, to the applicable House of
Congress before the amendment is offered; and
``(3) for any conference report, to the House of
Representatives and the Senate before the conference report is
first considered.''.
(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. Alternative analysis by Congressional Budget Office.''.
Subtitle C--Deficit Control Mechanism
SEC. 221. ALTERNATIVE NET COST ESTIMATE BY CONGRESSIONAL BUDGET OFFICE.
(a) In General.--Part A of title IV of the Congressional Budget Act
of 1974 (as amended by section 211) is further amended by adding at the
end the following new section:
``alternative net cost estimate by congressional budget office
``Sec. 408. (a) Alternative Net Cost Estimate.--The Director of
the Congressional Budget Office shall, to the extent practicable,
prepare for each bill or joint resolution of a public character
reported by any committee of the House of Representatives or the Senate
(except the Committee on Appropriations of each House) and for
amendments thereto and conference reports thereon a statement of
whether the measure's alternative net cost would exceed $5 billion. The
alternative net cost shall be obtained by computing the total value of
the measure, discounting for the present value of money and the
uncertainty of policies announced for future periods, using the same
methodology as in section 407.
``(b) Point of Order.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, motion, or conference report for which the Director issues a
statement under the preceding subsection that shows a alternative net
cost exceeding $5 billion, as adjusted annually for inflation.
``(c) Emergency Designation.--If a measure or provision is
designated as an emergency requirement under the applicable rules of
the House of Representatives and the Senate, the Director shall not
include the cost of such a provision in the statement of the budgetary
effects of such measure or provision.
``(d) Public Availability.--Not later than 14 days (excluding
Saturdays, Sundays, and public holidays) after Congress adjourns to end
a session, the Director shall make publicly available and cause to be
printed in the Federal Register an annual Discounted Score Deficit
Control report. The report shall include up-to-date deficit control
mechanism scorecards, information about emergency legislation (if any)
designated under subsection (c), and other data and explanations that
enhance public understanding of this Act and actions taken under it.''.
(b) Conforming Amendments.--(1) Subsections (c)(1) and (d)(2) of
section 904 of the Congressional Budget Act of 1974 are amended by
inserting ``408(b),'' after ``313,''.
(2) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 (as amended by
section 211) is further amended by inserting after the item relating to
section 407 the following new item:
``Sec. 408. Alternative net cost estimate by Congressional Budget
Office.''.
Subtitle D--Accrual Accounting Report
SEC. 231. ACCRUAL ACCOUNTING REPORT.
(a) Accrual-Based Accounting System.--The Director of the Office of
Management and Budget shall develop a proposal for the implementation
of an accrual-based accounting system for certain portions of the
budget, including--
(1) insurance, including social insurance programs such as
Social Security, Medicare, and Medicaid;
(2) environmental liabilities;
(3) Federal employee pensions;
(4) retiree health benefits; and
(5) other budget items where accrual-based accounting would
feasibly capture significant future cash resource requirements
that are not reflected in the cash-based budget; where
appropriate and reasonable.
(b) Report.--Within one year of the date of enactment of this Act,
the Director of the Office of Management and Budget shall submit a
report to Congress setting forth the legislation necessary for the
implementation of an accrual-based accounting system for part of the
budget, along with any recommendations regarding its proposed
legislation.
Subtitle E--On-Budget Status of Trust Funds and GSEs
SEC. 241. OMB REPORT RESPECTING BUDGETARY STATUS OF TRUST FUNDS AND
GSES.
(a) Report.--Within one year after the date of enactment of this
Act, the Director of the Office of Management and Budget shall submit a
report to Congress on the various scenarios by which the receipts and
disbursements of the following entities could be counted as new budget
authority, outlays, receipts, or deficit or surplus for the purposes of
the budget of the United States Government as submitted by the
President, the congressional budget, the Balanced Budget and Emergency
Deficit Control Act of 1985, and the Statutory Pay-As-You-Go Act of
2010:
(1) Government-sponsored enterprises (GSEs), including the
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(2) The various trust funds, including the Federal Old-Age
and Survivors Insurance Trust Fund, the Federal Disability
Insurance Trust Fund, and the Highway Trust Fund.
(b) Specific Recommendations.--In the report described in
subsection (a), the Director of the Office of Management and Budget
shall provide a specific recommendation for each scenario described in
the report, taking into account at least the following factors:
(1) Whether the reformed budget would more or less
accurately reflect the Government's finances, short-, medium-,
and long-term.
(2) Challenges associated with implementing the reformed
budget.
(3) Whether the reformed budget would be more or less
useful in enforcing the pay-as-you-go requirements of the
Statutory Pay-As-You-Go Act of 2010 and other deficit control
provisions.
(4) Whether the reformed budget could use the same
accounting standard for all budget items.
(5) Whether the reformed budget would have any impact on
the financing of Government-sponsored enterprises, trust funds,
Social Security, Medicare, or Medicaid.
TITLE III--TAX EXPENDITURE REFORMS
Subtitle A--Identification of Tax Expenditures
SEC. 301. JCT REPORTS ON TAX EXPENDITURES.
Section 202(f) of the Congressional Budget Act of 1974 is amended
by inserting ``(1)'' before ``For'' and by adding at the end the
following new paragraph:
``(2) Reports to Congress by the Joint Committee on Taxation
identifying tax expenditures shall also--
``(A) include an aggregate net cost of tax expenditures
that estimates the net impact of all tax expenditures on tax
revenues, taking into account, where possible, interaction
between such tax expenditures; and
``(B) compare this aggregate net cost with the total
revenue currently raised by the Internal Revenue Code of
1986.''.
SEC. 302. DEFINITION OF TAX SUBSIDY.
Section 3 of the Congressional Budget and Impoundment Control Act
of 1974 is amended by adding at the end the following new paragraph:
``(11) The term `tax subsidy' means those tax expenditures
that are deliberately inconsistent with an identifiable general
rule of the present tax law, and that collect less revenue than
does the general rule.''.
Subtitle B--Enforcement of Tax Expenditure Requirements
SEC. 311. TAX EXPENDITURE POINTS OF ORDER.
(a) Points of Order.--Title III of the Congressional Budget Act of
1974 is amended by adding at the end the following new section:
``tax expenditure points of order
``Sec. 316. (a) Tax Expenditure Point of Order.--(1) It shall not
be in order in the House of Representatives or the Senate to consider
any bill or joint resolution reported by the Committee on Ways and
Means of the House or the Committee on Finance of the Senate that
proposes to amend the Internal Revenue Code of 1986 to establish a new
tax expenditure unless the committee report includes--
``(A) a clear statement of the purpose of the tax
expenditure, including a justification of why this purpose is
best achieved through the tax system rather than as an outlay;
``(B) an explanation of how the tax expenditure will be
implemented and integrated with other related tax expenditures
and outlays;
``(C) a macroeconomic impact analysis; and
``(D) a statement from the Joint Committee on Taxation
explaining why a macroeconomic analysis is not calculable.
``(2) As used in paragraph (1), the term `macroeconomic impact
analysis' means--
``(A) an estimate prepared by the Joint Committee on
Taxation of the changes in economic output, employment, capital
stock, and tax revenues expected to result from enactment of
the applicable bill or joint resolution; and
``(B) a statement from the Joint Committee on Taxation
identifying the critical assumptions and the source of data
underlying that estimate.
``(b) Tax Subsidy Points of Order.--(1) It shall not be in order in
the House of Representatives or the Senate to consider any bill, joint
resolution, amendment, motion, or conference report that contains a new
tax subsidy, or modifies an existing tax subsidy so that the modified
tax code collects less revenue than the current tax code for the ten-
year period beginning with the fiscal year in which the modification
takes effect, without a provision terminating it after not more than
ten years.
``(2)(A) It shall not be in order in the House of Representatives
or the Senate to consider any bill or joint resolution reported by the
Committee on Ways and Means of the House or the Committee on Finance of
the Senate, as applicable, that proposes to amend the Internal Revenue
Code of 1986 to establish a new tax subsidy, or to modify an existing
tax subsidy so that the modified tax code would collect less revenue
than the current tax code, unless--
``(i) each new tax subsidy or each modification of an
existing tax subsidy is explicitly approved by the affirmative
vote of the applicable committee, quorum being present; and
``(ii) the chair of the applicable committee causes such
official statement to be printed in the Congressional Record
before consideration of the applicable bill or joint
resolution;
as determined under paragraph (3).
``(B) The Speaker of the House and the presiding officer of the
Senate shall determine the applicable committee by determining the
committee of jurisdication of legislation authorizing comparable
spending programs or by considering the tax subsidy to be a spending
program. For purposes of paragraph (2), the applicable committee shall
be the committee determined under the preceding sentence.''.
(b) Rules Amendment.--Clause 6(c) of rule XIII of the Rules of the
House of Representatives, as amended by section 221(b), is further
amended by adding before the period at the end thereof the following:
``, or a rule or order that would waive any point of order set forth in
section 316 of the Congressional Budget Act of 1974''.
(c) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment Control Act of
1974 (as amended by section 211) is further amended by inserting after
the item relating to section 315 the following new item:
``Sec. 316. Tax expenditure points of order.''.
Subtitle C--Executive Branch Reporting of Tax Expenditures
SEC. 331. EXECUTIVE BRANCH REPORTING OF TAX EXPENDITURES.
(a) OMB Guidance Regarding Tax Expenditures.--The Director of the
Office of Management and Budget shall develop clear and consistent
guidance to agencies on how to incorporate tax expenditures in their
strategic plans, annual performance plans, and performance and
accountability reports, to provide a broader perspective and more
cohesive plan of the Government's goals and strategies.
(b) Reporting of Tax Expenditure Data.--The Director of the Office
of Management and Budget shall require agencies to report tax
expenditure data related to their overall mission in their annual
financial statements.
(c) Definitions.--As used in this section--
(1) the term ``agency'' has the meaning given to such term
in paragraph (1) of section 551 of title 5, United States Code;
and
(2) the term ``tax expenditure'' has the meaning given to
such term in paragraph (3) of section 3 of the Congressional
Budget and Impoundment Control Act of 1974.
Subtitle D--Tax Expenditure Data
SEC. 341. DEVELOPMENT OF ELECTRONIC INCOME TAX FILING SYSTEM.
Not later than one year after the date of enactment of this Act,
the Secretary of the Treasury (or his designee) shall develop and
report to Congress on the legislative steps necessary to implement an
income tax filing system which--
(1) allows users to save their work;
(2) provides simple instructions for filing;
(3) allows users to file their income tax returns
electronically; and
(4) respects taxpayer privacy and security concerns.
SEC. 342. GAO REPORT ON TAX EXPENDITURES.
Not later than one year after the date of the enactment of this
Act, the Government Accountability Office shall publish a written
report making recommendations for improving the rules of the Internal
Revenue Service to facilitate the evaluation of tax expenditures. Such
report shall include a description of how to implement such
improvements, including a list of the key steps in such implementation.
SEC. 343. TREASURY REPORT ON TAX EXPENDITURES.
Not later than one year after the date of enactment of this Act,
the Secretary of the Treasury (or his designee) shall make a written
report to Congress which describes how the Secretary intends to use the
Internal Revenue Service panel data sample which was created to
facilitate the evaluation of savings-related tax expenditures. Such
report shall also include a description of all other efforts related to
tax expenditure data acquisition that the Secretary has taken or plans
to undertake.
Subtitle E--Tax Expenditure Performance Reviews
SEC. 351. CBO TAX EXPENDITURE PERFORMANCE REVIEWS.
(a) CBO Performance Review Schedule and Reports.--(1) Title II of
the Congressional Budget Act of 1974 is amended by adding at the end
the following new section:
``cbo performance review schedule and reports
``Sec. 204. (a) Performance Review Schedule.--
``(1) The Director shall conduct performance reviews of tax
expenditures, as identified by the Joint Committee on Taxation,
on an ongoing basis. The Director shall develop the schedule
for these reviews, such that each tax expenditure is reviewed
at least once in every four-year period. A four-year schedule
shall be submitted by the Director to Congress, the Secretary
of the Treasury, and the Director of the Office of Management
and Budget during January of each calendar year.
``(2) Within three months after the enactment of any new
tax expenditure, the Director shall revise the most recent
four-year schedule of tax expenditure performance reviews and
submit them with the quarterly reports as set forth in section
204(b)(1) of the Congressional Budget Act of 1974.
``(3) Not later than one year after the enactment of this
Act, the Director shall have submitted to Congress, the
Secretary of the Treasury, and the Director of the Office of
Management and Budget the first four-year schedule and begin
the first performance reviews under paragraph (1).
``(4) The Director shall endeavor to develop a four-year
schedule that provides for the simultaneous review of tax
expenditures that have similar policy objectives.
``(b) Reports.--
``(1) The Director shall report each of its performance
reviews of tax expenditures to Congress, the Secretary of the
Treasury, and the Director of the Office of Management and
Budget in quarterly reports and containing all of the
performance reviews conducted since the preceding report.
``(2) The Director may conduct expedited performance
reviews for any tax expenditure that has an estimated annual
fiscal impact of less than $1 billion, annually adjusted for
inflation, unless the Secretary of the Treasury requests or the
chairs and ranking minority members of the Committees on the
Budget of the House of Representatives and the Senate jointly
request, in writing, a full review.
``(3) Each performance review, except for expedited
performance reviews, shall include the following explanations,
descriptions, estimates, analyses, and recommendations:
``(A) An explanation of the tax expenditure and any
relevant economic, social, or other context under which
it was first enacted.
``(B) A description of the intended purpose of the
tax expenditure.
``(C) An analysis of the overall success of the tax
expenditure in achieving such purpose, and evidence
supporting such analysis.
``(D) An analysis of the extent to which further
extending the tax expenditure, or making it permanent,
would contribute to achieving such purpose.
``(E) A description of the direct and indirect
beneficiaries of the tax expenditure, also specifying--
``(i) any unintended beneficiaries of the
tax expenditure;
``(ii) the classes of individuals, types of
organizations, or types of industries whose
Federal tax liabilities are directly affected
by the tax expenditure;
``(iii) the extent to which terminating the
tax expenditure may have negative effects on
the category of taxpayers that currently
benefit from the tax preference and on the
economy; and
``(iv) the extent to which the termination
of the tax expenditure would affect the
distribution of liability for payments of
Federal taxes.
``(F) An analysis of whether the tax expenditure is
the most cost-effective method for achieving the
purpose for which it was intended, and a description of
any more cost-effective methods through which such
purpose could be accomplished, and in particular the
extent to which a direct spending program might be
preferable to a tax expenditure, including--
``(i) whether an outlay program might
achieve the same policy objectives as a tax
expenditure;
``(ii) whether an outlay program might
reduce deadweight losses and improve economic
efficiency in the national economy; and
``(iii) whether a direct spending program
might be more or less expense to administer.
``(G) A description of any unintended effects of
the tax expenditure that is useful in understanding the
tax expenditure's overall value.
``(H) A description of any interactions (actual or
potential) with other tax expenditures or direct
spending programs in the same or related budget
function that should be studied further.
``(I) An estimate of the annual cost in forgone
revenues of the tax expenditure, as well as a
projection of the cost in foregone revenues for the
ensuing ten fiscal years.
``(J) A description of any further information
needed to complete a more thorough examination and
analysis of the tax expenditure, and what is necessary
to make such information available.
``(K) A specific recommendation, based on analysis
conducted in the performance review, as to whether the
tax expenditure should be continued without
modification, modified (including converted fully or
partly into a direct spending program), scheduled for
sunset, reviewed at a later date, or terminated
immediately. The Director may decline to provide a
specific recommendation, but in each such case shall
provide an explanation of why a recommendation has not
been given.
``(4) An expedited performance review shall include at
least the explanations, descriptions, estimates, analyses, and
recommendations as listed in subparagraphs (A), (B), (C), (D),
(I), (J), and (K) of paragraph (3).
``(c) Committee Hearings.--Not later than 60 days after the
submission of any performance review report under subsection (b), the
Committees on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate shall hold public hearings to
consider the performance review recommendations contained in that
report. The Committees on the Budget of the House of Representatives
and the Senate may also hold hearings on such performance review
recommendations.''.
(2) 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 203 the following new
item:
``Sec. 204. CBO performance review schedule and reports.''.
(b) Treasury and OMB Comments.--Not later than 60 days after
submission of a performance review report pursuant to section 204(b) of
the Congressional Budget Act of 1974, the Secretary of the Treasury and
the Director of the Office of Management and Budget shall each provide
to Congress and to the Director of the Congressional Budget Office
detailed, written comments on the performance review recommendations,
stating whether the Secretary of the Treasury or the Director of the
Office of Management and Budget, as applicable, agrees or disagrees
with all or any part of the report or, if no opinion is given,
providing an explanation of why the Secretary or the Director has no
opinion or has not given one.
<all>
Introduced in House
Introduced in House
Referred to House Budget
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 jurisdiction of the committee concerned.
Referred to House Rules
Referred to House Ways and Means
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