Intergenerational Financial Obligations Reform Act or INFORM Act - Amends the Congressional Budget Act of 1974 to require the Congressional Budget Office (CBO) to provide certain information on any legislation or resolution considered in either chamber which would impact revenues or mandatory spending by greater than 0.5% of gross domestic product (GDP) over the following 10-fiscal-year period, and upon request by the Chairmen or Ranking Members of the congressional budget committees.
Requires such information to comprise:
Requires: (1) CBO to produce an annual fiscal gap and generational accounting analysis within its annual "Long-Term Budget Outlook" and post it on the CBO public website, and (2) the Comptroller General to produce a separate similar analysis within its annual "Long-Term Fiscal Outlook" and post it on the General Accountability Office (GAO) public website.
Requires the President's budget submission to Congress to include:
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2967 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2967
To provide for fiscal gap and generational accounting analysis in the
legislative process, the President's budget, and annual long-term
fiscal outlook reports.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 1, 2013
Mr. Schock (for himself and Mr. Cooper) introduced the following bill;
which was referred to the Committee on the Budget
_______________________________________________________________________
A BILL
To provide for fiscal gap and generational accounting analysis in the
legislative process, the President's budget, and annual long-term
fiscal outlook reports.
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 ``Intergenerational Financial
Obligations Reform Act'' or the ``INFORM Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Fiscal gap.--The term ``fiscal gap'' means an economic
analysis that--
(A) calculates the difference between the present
value of all projected future Federal spending,
including interest and principal payments on the
initial outstanding debt, and the present value of all
projected future Federal revenues, over an infinite
time horizon;
(B) calculates the permanent Federal revenue
increases and spending reductions and identifies the
combination of fiscal policy options starting in the
budget year, and 5, 10, 15, and 25 years after the
budget year, needed to eliminate the infinite horizon
fiscal gap calculated as of the budget year; and
(C) calculates the increases in the levels of
annual rates of economic growth factors, including
technological change, labor productivity, and capital
deepening, starting in the budget year, and 5, 10, 15,
and 25 years after the budget year, needed to eliminate
the infinite horizon fiscal gap calculated as of the
budget year.
(2) Generation.--The term ``generation'' means a 1-year age
cohort.
(3) Generational accounting.--The term ``generational
accounting'' means an economic analysis that calculates--
(A) the projected present value lifetime net
Federal tax burden facing each living adult generation
over 18 years of age; and
(B) the present value lifetime net Federal tax
burdens facing each current generation of children 18
years of age and under, as well as each future
generation, assuming--
(i) the sum of all present value lifetime
net Federal tax burdens facing each current
generation of children 18 years of age and
under, as well as each future generation,
covers the present value of future
discretionary spending, including interest and
principal payments on the initial outstanding
debt, less the sum of all present value
lifetime net Federal tax burdens facing living
adult generations over 18 years of age; and
(ii) the lifetime net Federal tax burden of
generations 18 years of age and under, as well
as future generations, increases with year of
birth at the projected growth rate of labor
productivity.
(4) Net federal tax burden.--The term ``net Federal tax
burden'' means the difference between Federal taxes paid and
transfer payments received.
SEC. 3. THE CONGRESSIONAL BUDGET OFFICE REPORT.
Section 202(e) of the Congressional Budget Act of 1974 is amended
by inserting at the end the following:
``(4)(A) For any legislation or resolution considered in
the Senate or the House of Representatives that would impact
revenues or mandatory spending by greater than 0.5 percent of
gross domestic product over the following 10-fiscal year period
and upon request relating to such legislation or resolution by
the Chairmen or Ranking Members of the Committees on the Budget
of the House of Representatives or the Senate, the
Congressional Budget Office shall be required to provide, with
respect to such legislation or resolution--
``(i) a fiscal gap and generational accounting
analysis, including the change in the fiscal gap and
generational accounting analysis relative to the
baseline; and
``(ii) the Federal deficit, at current spending
levels, in the fiscal year that is 75 years and the
stock of the debt in the 75th year after the fiscal
year in which the legislation is being considered.
``(B) In this paragraph--
``(i) the term `fiscal gap' means an economic
analysis that--
``(I) calculates the difference between the
present value of all projected future Federal
spending, including interest and principal
payments on the initial outstanding debt, and
the present value of all projected future
Federal revenues, over an infinite time
horizon;
``(II) calculates the permanent Federal
revenue increases and spending reductions and
identifies the combination of fiscal policy
options starting in the budget year, and 5, 10,
15, and 25 years after the budget year, needed
to eliminate the infinite horizon fiscal gap
calculated as of the budget year; and
``(III) calculates the increases in the
levels of annual rates of economic growth
factors, including technological change, labor
productivity, and capital deepening, starting
in the budget year, and 5, 10, 15, and 25 years
after the budget year, needed to eliminate the
infinite horizon fiscal gap calculated as of
the budget year;
``(ii) the term `generation' means a 1-year age
cohort;
``(iii) the term `generational accounting' means an
economic analysis that calculates--
``(I) the projected present value lifetime
net Federal tax burden facing each living adult
generation over 18 years of age; and
``(II) the present value lifetime net
Federal tax burdens facing each current
generation of children 18 years of age and
under, as well as each future generation,
assuming--
``(aa) the sum of all present value
lifetime net Federal tax burdens facing
each current generation of children 18
years of age and under, as well as each
future generation, covers the present
value of future discretionary spending,
including interest and principal
payments on the initial outstanding
debt, less the sum of all present value
lifetime net Federal tax burdens facing
living adult generations over 18 years
of age; and
``(bb) the lifetime net Federal tax
burden of generations 18 years of age
and under, as well as future
generations, increases with year of
birth at the projected growth rate of
labor productivity; and
``(iv) the term `net Federal tax burden' means the
difference between Federal taxes paid and transfer
payments received.''.
SEC. 4. CBO ANNUAL REPORT.
(a) In General.--The Congressional Budget Office shall produce an
annual fiscal gap and generational accounting analysis within its
annual ``Long-Term Budget Outlook''.
(b) Public Report.--The Director of the Congressional Budget Office
shall post the report described in subsection (a) on the Congressional
Budget Office public website.
SEC. 5. GAO ANNUAL REPORT.
(a) In General.--The Comptroller General shall produce an annual
fiscal gap and generational accounting analysis within its annual
``Long-Term Fiscal Outlook''.
(b) Public Report.--The Comptroller General shall post the report
described in subsection (a) on the General Accountability Office public
website.
SEC. 6. THE PRESIDENT'S BUDGET.
Section 1105 of title 31, United States Code, is amended--
(1) in subsection (a), by--
(A) redesignating paragraph (37) following
paragraph (38) as paragraph (39); and
(B) adding at the end the following:
``(40) an analysis including--
``(A) a fiscal gap and generational accounting
analysis of the full budget proposal;
``(B) a fiscal gap and generational accounting
analysis of specific policy changes that would impact
revenues or mandatory spending by greater than 0.5
percent of gross domestic product over the following
10-fiscal year period; and
``(C) the Federal deficit, at current spending
levels, in the fiscal year that is 75 years and the
stock of the debt in the 75th year after the fiscal
year in which the policy is being considered.''; and
(2) by inserting at the end the following:
``(i) For purposes of subsection (a)(40)--
``(1) the term `fiscal gap' means an economic analysis
that--
``(A) calculates the difference between the present
value of all projected future Federal spending,
including interest and principal payments on the
initial outstanding debt, and the present value of all
projected future Federal revenues, over an infinite
time horizon;
``(B) calculates the permanent Federal revenue
increases and spending reductions and identifies the
combination of fiscal policy options starting in the
budget year, and 5, 10, 15, and 25 years after the
budget year, needed to eliminate the infinite horizon
fiscal gap calculated as of the budget year; and
``(C) the increases in the levels of annual rates
of economic growth factors, including technological
change, labor productivity, and capital deepening,
starting in the budget year, and 5, 10, 15, and 25
years after the budget year, needed to eliminate the
infinite horizon fiscal gap calculated as of the budget
year;
``(2) the term `generation' means a 1-year age cohort;
``(3) the term `generational accounting' means an economic
analysis that calculates--
``(A) the projected present value lifetime net
Federal tax burden facing each living adult generation
over 18 years of age; and
``(B) the present value lifetime net Federal tax
burdens facing each current generation of children 18
years of age and under, as well as each future
generation, assuming--
``(i) the sum of all present value lifetime
net Federal tax burdens facing each current
generation of children 18 years of age and
under, as well as each future generation,
covers the present value of future
discretionary spending, including interest and
principal payments on the initial outstanding
debt, less the sum of all present value
lifetime net Federal tax burdens facing living
adult generations over 18 years of age; and
``(ii) the lifetime net Federal tax burden
of generations 18 years of age and under, as
well as future generations, increases with year
of birth at the projected growth rate of labor
productivity; and
``(4) the term `net Federal tax burden' means the
difference between Federal taxes paid and transfer payments
received.''.
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Introduced in House
Introduced in House
Referred to the House Committee on the Budget.
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