,,ii #aagth ,,congress #ast ,session ,s4 #bedh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bi1 #bjba,mr4 ,braun 7for himself1 ,ms4 ,lummis1 ,mr4 ,scott of ,florida1 and ,mr4 ,cruz7 introduced the following bill2 which was read twice and referred to the ,committee on the ,budget ,a ,,bill ,to provide for fiscal gap and generational accounting analysis in the legislative process1 the ,president's budget1 and annual long-term fiscal outlook reports4 #a4 ,short title ,this ,act may be cited as the ,intergenerational ,financial ,obligations ,reform ,act4 #b4 ,the congressional budget office report ,section #bjb of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #fjb7 is amended-- 7#a7 in subsection 7e71 by adding at the end the following3 7#d7 ,for any legislation or resolution considered in the ,senate or the ,house of ,representatives that would impact revenues or mandatory spending by greater than #j4e percent of the gross domestic product over the following #aj-;fiscal-year period and upon request relating to any other legislation or resolution by the ,chairman or ,ranking ,member of the ,committee on the ,budget of the ,house of ,representatives or of the ,committee on the ,budget of the ,senate1 the ,congressional ,budget ,office shall provide with respect to such legislation or resolution a report that includes-- 7,a7 a fiscal gap report and a generational account report1 including changes in the fiscal gap and generational accounts relative to the baseline estimates for purposes of each such report2 7,b7 ,federal deficits as of the end of the fiscal year that is #ge years after the budget year with respect to the legislation1 under a baseline estimate and an alternative scenario estimate2 and 7,c7 outstanding ,treasury liabilities as of the end of the fiscal year that is #ge years after the budget year with respect to the legislation1 under a baseline estimate and an alternative scenario estimate4 2 and 7#b7 by adding at the end the following3 7h7 ,definitions ,in this section3 7#a7 ,alternative scenario estimate ,the term alternative scenario estimate means an estimate assuming laws1 as in effect during the budget year1 continue to be in effect for each subsequent fiscal year4 7#b7 ,baseline estimate ,the term baseline estimate means an estimate based on laws enacted through the date of the estimate4 7#c7 ,budget year ,the term budget year has the meaning given that term in section #bej7;c7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ijj7;c774 7#d7 ,direct spending ,the term direct spending has the meaning given that term in section #bej7;c7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ijj7;c774 7#e7 ,explicit debt ,the term explicit debt means the total amount of ,treasury liabilities outstanding on the last day of the budget year4 7#f7 ,fiscal gap ,the term fiscal gap means the sum of the explicit debt and the implicit debt4 7#g7 ,fiscal gap policy option 7,a7 ,in general ,the term fiscal gap policy option means the permanent across-the-board change in particular 7combinations of7 ,federal revenues or the permanent across-the-board change in particular 7combinations of7 ,federal expenditures required to make the fiscal gap equal to zero4 7,b7 ,timing ,the change in revenues or expenditures for purposes of subparagraph 7,a7-- 7i7 may be calculated under alternative timings of when the policy change begins2 and 7ii7 shall1 at a minimum1 include policy change options starting #a1 #e1 #aj1 #ae1 and #be fiscal years after the budget year4 7,c7 ,policy options ,the potential combinations of changes in ,federal revenues and ,federal expenditures that are a part of a fiscal gap policy option may include-- 7i7 income taxes imposed under chapter #a of the ,internal ,revenue ,code of #aihf2 7ii7 taxes described in clause 7i71 taxes on self-employment income under chapter #b of the ,internal ,revenue ,code of #aihf1 employment taxes imposed under chapters #ba and #bb of such ,code1 and offsetting receipts2 7iii7 taxes and receipts described in clause 7ii71 excise taxes imposed under subtitles ,d and ,e of the ,internal ,revenue ,code of #aihf1 estate and gift taxes imposed under subtitle ,b of such ,code1 customs duties1 and other receipts2 7iv7 discretionary appropriations 7with no changes to offsetting receipts72 7v7 direct spending and expenditures under the ,federal old-age1 survivors1 and disability insurance benefits program under title ,,ii of the ,social ,security ,act1 the ,medicare program under parts ,a and ,b of title ,,xviii of the ,social ,security ,act1 and ,medicare ,prescription ,drug ,coverage under part ,d of title ,,xviii of the ,social ,security ,act2 7vi7 direct spending and expenditures described in clause 7v7 and all other direct spending including the supplemental nutrition assistance program1 supplemental security income benefits1 child1 earned income1 and other tax credits1 child nutrition programs1 the temporary assistance for needy families program1 housing assistance programs1 and civilian and military retirement programs2 and 7vii7 discretionary appropriations and direct spending1 except interest payments on outstanding ,treasury liabilities4 7,d7 ,dynamic effects ,calculations of fiscal gap policy options shall incorporate dynamic effects from induced changes in labor supply1 national saving1 and capital formation1 as relevant to each particular policy option among those described in subparagraphs 7,c74 7#h7 ,fiscal gap report 7,a7 ,in general ,the term fiscal gap report means a report that1 in accordance with this paragraph-- 7i7 specifies the amount of explicit debt1 the implicit debt1 and the fiscal gap2 7ii7 provides fiscal gap policy options2 and 7iii7 incorporates a fiscal gap sensitivity analysis4 7,b7 ,separate reporting for trust funds 7i7 ,in general ,a fiscal gap report shall address each item specified in clauses 7i71 7ii71 and 7iii7 of subparagraph 7,a7 separately for each social insurance program4 7ii7 ,fiscal gap policy options ,the fiscal gap policy options provided for each ,federal social insurance program shall be limited to changes in receipts and expenditures from the applicable trust fund4 7iii7 ,calculation 7,i7 ,in general ,for purposes of calculations relating to the fiscal gap in connection with a social insurance program1 the calculations shall be determined as the sum of-- 7aa7 the projected budget-year-end value of ,treasury securities and other assets held in the applicable trust fund2 and 7bb7 the present discounted value of annual expenditures from the applicable trust fund over future fiscal years minus the present discounted value of receipts paid into the applicable trust fund excluding transfers from other ,federal funds over future fiscal years4 7,,ii7 ,expenditures and receipts ,for purposes of subclause 7,i71 expenditures and receipts shall include expenditures and receipts projected through the future fiscal year described in paragraph 7#ae77;,b74 7iv7 ,limiting ,for each social insurance program1 a fiscal gap report shall separately address each item specified in clauses 7i71 7ii71 and 7iii7 of subparagraph 7,a7 as specified and after limiting the calculation under clause 7iii77,i77bb7 to the closed group of past and current adult program participants 7as described in paragraph #aa7;,b77i771 both taxpayers and beneficiaries4 7,c7 ,scenarios ,a fiscal gap report shall address each item specified in clauses 7i71 7ii71 and 7iii7 of subparagraph 7,a7 under-- 7i7 a baseline estimate2 and 7ii7 an alternative scenario estimate4 7,d7 ,amounts ,a fiscal gap report shall provide information with respect to each item specified in clauses 7i71 7ii71 and 7iii7 of subparagraph 7,a7-- 7i7 in present-discounted dollars2 7ii7 as percentages of present-discounted value of future gross domestic product projected through the future fiscal year described in paragraph 7#ae77;,b72 and 7iii7 as a percentage of the amount of taxes projected to be collected under sections #adja7;b71 #caja7;b71 and #caaa7;b7 of the ,internal ,revenue ,code of #aihf through the future fiscal year described in paragraph 7#ae77;,b74 7#i7 ,fiscal gap sensitivity analysis 7,a7 ,in general ,the term fiscal gap sensitivity analysis means estimates of changes to the fiscal gap amounts specified in paragraph 7#h77;,d7 calculated under alternative economic and demographic assumptions for a given scenario described in paragraph 7#h77;,c74 7,b7 ,required alternatives ,the alternative economic assumptions for any fiscal gap sensitivity analysis shall include the following3 7i7 ,projected annual rate of population growth that is #be basis points larger and #be basis points smaller than the baseline population growth-rate projection specified under paragraph 7#ae77;,c74 ,in making the estimates1 the applicable agency may use reasonable alternative symmetric basis point variations around baseline population-growth projections consistent with uncertainty associated with underlying growth components of fertility1 mortality1 and immigration rates4 7ii7 ,projected annual rates of labor productivity growth that is #ej basis points larger and #ej basis points smaller than the baseline labor productivity growth-rate projection specified under paragraph 7#ae77;,c74 ,in making the estimates1 the applicable agency may use reasonable alternative1 symmetric basis-point variations around baseline labor-productivity growth rates consistent with uncertainty associated with underlying components of inflation rates1 technological change1 capital intensity1 and labor efficiency4 7iii7 ,projected discount rates that are #ge basis points larger and #ge basis points smaller than the baseline long-term discount rate projection specified under paragraph 7#ae77;,d74 ,in making the estimates1 the applicable agency may use reasonable alternative1 symmetric basis-point variations as appropriate around baseline interest rate projections consistent with uncertainty associated with long-term government borrowing rates4 ,all interest rate variations reported shall be consistent with maintaining a net positive average long-term interest rate after subtracting the long-term average labor productivity growth rate of the economy of the ,united ,states4 7#aj7 ,generation ,the term generation means a #a-year birth cohort of individuals of a given gender born during a given fiscal year4 7#aa7 ,generational account 7,a7 ,in general ,the term generational account means the actuarially present-valued amount per capita for a given generation of annual net ,federal tax burdens during that generation's remaining lifetime under a particular ,federal fiscal policy4 7,b7 ,ages ,a report regarding generational accounts shall include generational accounts for-- 7i7 selected individual generations born not less than #ah years before the report2 and 7ii7 selected individual generations born or who will be born after the date that is #ah years before the report1 including those born after the budget year4 7,c7 ,calculation ,generational accounts of children and future generations described in subparagraph 7,b77ii7 shall be calculated such that-- 7i7 their total over all members equals the sum of-- 7,i7 ,treasury liabilities projected to be outstanding at the end of the budget year2 and 7,,ii7 the present value of projected discretionary 7non-transfer7 ,federal spending minus the sum of the generational accounts of adult generations described in subparagraph 7,b77i72 7ii7 the ratio of the generational account of males of each generation among children and future generations described in subparagraph 7,b77ii7 to the generational account of females born in the same year is set equal to the ratio of the generational accounts of males and females born #ah years before the calculation2 and 7iii7 the generational accounts of members of children and future generations described in subparagraph 7,b77ii7 increases with the year of their births at the projected growth rate of labor productivity4 7#ab7 ,generational account policy effects 7,a7 ,in general ,the term generational account policy effects means the changes to the generational accounts of adults described in paragraph 7#aa77;,b77i7 and children and future generations described in paragraph 7#aj77;,b77ii7 and to the generational net-tax-burden gap from changes to particular 7combinations of7 ,federal taxes and to particular 7combinations of7 ,federal expenditures4 7,b7 ,dynamic effects ,calculations of generational accounts policy options shall incorporate dynamic effects from induced changes in employment1 national saving1 and capital formation1 as relevant to each particular policy option described in paragraph 7#g77;,c74 7#ac7 ,generational account report 7,a7 ,in general ,the term generational account report means a report that1 in accordance with this paragraph1 includes generational accounts and a discussion of generational account policy effects4 7,b7 ,scenarios ,a generational account report shall address generational accounts1 including net ,federal tax burdens1 under-- 7i7 a baseline estimate2 and 7ii7 an alternative scenario estimate4 7#ad7 ,generational net-tax-burden gap ,the term generational net-tax-burden gap means the ratios of the generational account of males and females born #ag years before the budget year to the generational accounts of males and females1 respectively1 born #ah years before the budget year minus #a times #ajj4 7#ae7 ,implicit debt 7,a7 ,in general ,the term implicit debt means the difference between-- 7i7 the discounted present value of projected annual ,federal spending during the period of the budget year and not less than the ensuing #ge fiscal years1 excluding spending for net interest and principal payments on ,treasury liabilities2 and 7ii7 the discounted present value of ,federal tax and non-tax receipts during the period of the budget year and not less than the ensuing #ge fiscal years4 7,b7 ,projection period ,annual ,federal noninterest spending and receipts used to calculate implicit debt shall be projected through a future fiscal year1 at least #ge years beyond the budget year1 and such that the accrual to the fiscal gap by extending the calculation by #a additional fiscal year is within #j4a percent of the fiscal gap without extending the calculation by #a fiscal year4 7,c7 ,federal budget projections ,the growth of ,federal noninterest spending and receipts over future fiscal years shall be consistent with the baseline projections of population growth1 general price inflation 7,personal ,consumption ,expenditures index71 and labor-productivity-growth factors including technological change1 capital intensity1 and labor efficiency1 as determined by the applicable agency4 7,d7 ,discount rates ,for purposes of calculating the implicit debt1 the discount rates shall be the interest rate projections of the ,congressional ,budget ,office over the projection horizon on ,treasury bonds with prospective maturity of at least #bj years and longer4 7#af7 ,net ,federal tax burden ,the term net ,federal tax burden means the difference between ,federal taxes paid and transfer payments received4 7#ag7 ,social insurance program ,the term social insurance program-- 7,a7 means a social insurance program that is funded out of a ,federal trust fund2 and 7,b7 includes the ,federal old-age1 survivors1 and disability insurance benefits program under title ,,ii of the ,social ,security ,act1 the ,medicare program under parts ,a and ,b of title ,,xviii of the ,social ,security ,act1 and the ,medicare ,prescription ,drug ,coverage under part ,d of title ,,xviii of the ,social ,security ,act4 7#ah7 ,treasury liabilities ,the term ,treasury liabilities means the face amount of obligations issued under chapter #ca of title #ca1 ,united ,states ,code1 and the face amount of obligations whose principal and interest are guaranteed by the ,united ,states ,government 7except guaranteed obligations held by the ,secretary of the ,treasury7--as in section #caja7;b7 of title #ca4 4 #c4 ,,cbo annual report 7a7 ,requirement 7#a7 ,in general ,the ,congressional ,budget ,office shall produce a fiscal gap and generational accounting analysis1 which shall be reported as a separate section within its annual ,long-,term ,budget ,outlook4 7#b7 ,definitions ,in this subsection1 the terms fiscal gap and generational account have the meanings given such terms in subsection 7h7 of section #bjb of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #fjb71 as added by section #b4 7b7 ,public report ,the ,director of the ,congressional ,budget ,office shall post the report described in subsection 7a7 on the ,congressional ,budget ,office public website4 #d4 ,,gao annual report 7a7 ,requirement 7#a7 ,in general ,the ,comptroller ,general shall produce annually a report on fiscal gap and generational accounting analysis consistent with the assumptions of the ,government ,accountability ,office with respect to baseline projections of population growth1 general price inflation 7,personal ,consumption ,expenditures index71 and labor-productivity-growth factors including technological change1 capital intensity1 and labor efficiency4 7#b7 ,definitions ,in this subsection1 the terms fiscal gap and generational account have the meanings given such terms in subsection 7h7 of section #bjb of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #fjb71 as added by section #b4 7b7 ,public report ,the ,comptroller ,general shall post the report described in subsection 7a7 on the ,general ,accountability ,office public website4 #e4 ,the ,president's budget ,section #aaje of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a71 by adding at the end the following3 7#dj7 an analysis including-- 7,a7 a fiscal gap report and a generational account report1 including changes in the fiscal gap and generational accounts relative to the baseline estimates for purposes of each report2 7,b7 ,federal deficits as of the end of the fiscal year that is #ge years after the budget year1 under a baseline estimate and an alternative scenario estimate2 and 7,c7 outstanding ,treasury liabilities as of the end of the fiscal year that is #ge years after the budget year1 under a baseline estimate and an alternative scenario estimate4 2 and 7#b7 by adding at the end the following3 7i7 7#a7 ,for purposes of subsection 7a77#dj71 the terms alternative scenario estimate1 baseline estimate1 fiscal gap1 fiscal gap report1 generational account1 generational account report1 and ,treasury liabilities have the meanings given such terms in section #bjb7;h7 of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #fjb7;h774 7#b7 ,for purposes of subsection 7a77#dj71 the terms defined in paragraph 7#a7 shall be calculated using the assumptions of the ,president of baseline projections of population growth1 general price inflation 7,personal ,consumption ,expenditures index71 and labor-productivity-growth factors including technological change1 capital intensity1 and labor efficiency4 4