,,ii #aag? ,,congress #a/ ,session ,s4 #bedh ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bi1 #bjba,mr4 ,braun 7= himself1 ,ms4 ,lummis1 ,mr4 ,scott ( ,florida1 & ,mr4 ,cruz7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,budget ,a ,,bill ,to provide = fiscal gap & g5]ational acc\nt+ analysis 9 ! legislative process1 ! ,presid5t's budget1 & annual long-t]m fiscal outlook reports4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,int]g5]ational ,f9ancial ,obligations ,re=m ,act4 #b4 ,! congressional budget (fice report ,section #bjb ( ! ,congressional ,budget ,act ( #aigd 7#b ,u4,s4,c4 #fjb7 is am5d$-- 7#a7 9 subsection 7e71 by add+ at ! end ! foll[+3 7#d7 ,= any legislation or resolution consid]$ 9 ! ,s5ate or ! ,h\se ( ,repres5tatives t w\ld impact rev5ues or m&atory sp5d+ by great] ?an #j4e p]c5t ( ! gross dome/ic product ov] ! foll[+ #aj-;fiscal-ye> p]iod & ^u reque/ relat+ to any o!r legislation or resolution by ! ,*airman or ,rank+ ,memb] ( ! ,committee on ! ,budget ( ! ,h\se ( ,repres5tatives or ( ! ,committee on ! ,budget ( ! ,s5ate1 ! ,congressional ,budget ,(fice %all provide ) respect to su* legislation or resolution a report t includes-- 7,a7 a fiscal gap report & a g5]ational acc\nt report1 includ+ *anges 9 ! fiscal gap & g5]ational acc\nts relative to ! basel9e e/imates = purposes ( ea* su* report2 7,b7 ,f$]al deficits z ( ! end ( ! fiscal ye> t is #ge ye>s aft] ! budget ye> ) respect to ! legislation1 "u a basel9e e/imate & an alt]native sc5>io e/imate2 & 7,c7 out/&+ ,treasury liabilities z ( ! end ( ! fiscal ye> t is #ge ye>s aft] ! budget ye> ) respect to ! legislation1 "u a basel9e e/imate & an alt]native sc5>io e/imate4 2 & 7#b7 by add+ at ! end ! foll[+3 7h7 ,def9itions ,9 ?is section3 7#a7 ,alt]native sc5>io e/imate ,! t]m alt]native sc5>io e/imate means an e/imate assum+ laws1 z 9 effect dur+ ! budget ye>1 cont9ue to be 9 effect = ea* subsequ5t fiscal ye>4 7#b7 ,basel9e e/imate ,! t]m basel9e e/imate means an e/imate bas$ on laws enact$ ?r\gh ! date ( ! e/imate4 7#c7 ,budget ye> ,! t]m budget ye> has ! mean+ giv5 t t]m 9 section #bej7;c7 ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe 7#b ,u4,s4,c4 #ijj7;c774 7#d7 ,direct sp5d+ ,! t]m direct sp5d+ has ! mean+ giv5 t t]m 9 section #bej7;c7 ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe 7#b ,u4,s4,c4 #ijj7;c774 7#e7 ,explicit debt ,! t]m explicit debt means ! total am\nt ( ,treasury liabilities out/&+ on ! la/ day ( ! budget ye>4 7#f7 ,fiscal gap ,! t]m fiscal gap means ! sum ( ! explicit debt & ! implicit debt4 7#g7 ,fiscal gap policy option 7,a7 ,9 g5]al ,! t]m fiscal gap policy option means ! p]man5t across-!-bo>d *ange 9 p>ticul> 7comb9ations (7 ,f$]al rev5ues or ! p]man5t across-!-bo>d *ange 9 p>ticul> 7comb9ations (7 ,f$]al exp5ditures requir$ to make ! fiscal gap equal to z]o4 7,b7 ,tim+ ,! *ange 9 rev5ues or exp5ditures = purposes ( subp>agraph 7,a7-- 7i7 may be calculat$ "u alt]native tim+s ( :5 ! policy *ange beg9s2 & 7ii7 %all1 at a m9imum1 include policy *ange options />t+ #a1 #e1 #aj1 #ae1 & #be fiscal ye>s aft] ! budget ye>4 7,c7 ,policy options ,! pot5tial comb9ations ( *anges 9 ,f$]al rev5ues & ,f$]al exp5ditures t are a "p ( a fiscal gap policy option may include-- 7i7 income taxes impos$ "u *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf2 7ii7 taxes describ$ 9 clause 7i71 taxes on self-employm5t income "u *apt] #b ( ! ,int]nal ,rev5ue ,code ( #aihf1 employm5t taxes impos$ "u *apt]s #ba & #bb ( su* ,code1 & (fsett+ receipts2 7iii7 taxes & receipts describ$ 9 clause 7ii71 excise taxes impos$ "u subtitles ,d & ,e ( ! ,int]nal ,rev5ue ,code ( #aihf1 e/ate & gift taxes impos$ "u subtitle ,b ( su* ,code1 cu/oms duties1 & o!r receipts2 7iv7 discretion>y appropriations 7) no *anges to (fsett+ receipts72 7v7 direct sp5d+ & exp5ditures "u ! ,f$]al old-age1 survivors1 & disability insurance b5efits program "u title ,,ii ( ! ,social ,security ,act1 ! ,m$ic>e program "u p>ts ,a & ,b ( title ,,xviii ( ! ,social ,security ,act1 & ,m$ic>e ,prescription ,drug ,cov]age "u "p ,d ( title ,,xviii ( ! ,social ,security ,act2 7vi7 direct sp5d+ & exp5ditures describ$ 9 clause 7v7 & all o!r direct sp5d+ includ+ ! supplem5tal nutrition assi/ance program1 supplem5tal security income b5efits1 *ild1 e>n$ income1 & o!r tax cr$its1 *ild nutrition programs1 ! tempor>y assi/ance = ne$y families program1 h\s+ assi/ance programs1 & civilian & milit>y retirem5t programs2 & 7vii7 discretion>y appropriations & direct sp5d+1 except int]e/ paym5ts on out/&+ ,treasury liabilities4 7,d7 ,dynamic effects ,calculations ( fiscal gap policy options %all incorporate dynamic effects f induc$ *anges 9 labor supply1 national sav+1 & capital =mation1 z relevant to ea* p>ticul> policy option among ^? describ$ 9 subp>agraphs 7,c74 7#h7 ,fiscal gap report 7,a7 ,9 g5]al ,! t]m fiscal gap report means a report t1 9 accordance ) ?is p>agraph-- 7i7 specifies ! am\nt ( explicit debt1 ! implicit debt1 & ! fiscal gap2 7ii7 provides fiscal gap policy options2 & 7iii7 incorporates a fiscal gap s5sitivity analysis4 7,b7 ,sep>ate report+ = tru/ funds 7i7 ,9 g5]al ,a fiscal gap report %all address ea* item specifi$ 9 clauses 7i71 7ii71 & 7iii7 ( subp>agraph 7,a7 sep>ately = ea* social insurance program4 7ii7 ,fiscal gap policy options ,! fiscal gap policy options provid$ = ea* ,f$]al social insurance program %all be limit$ to *anges 9 receipts & exp5ditures f ! applicable tru/ fund4 7iii7 ,calculation 7,i7 ,9 g5]al ,= purposes ( calculations relat+ to ! fiscal gap 9 connection ) a social insurance program1 ! calculations %all be det]m9$ z ! sum (-- 7aa7 ! project$ budget-ye>-end value ( ,treasury securities & o!r assets held 9 ! applicable tru/ fund2 & 7bb7 ! pres5t disc\nt$ value ( annual exp5ditures f ! applicable tru/ fund ov] future fiscal ye>s m9us ! pres5t disc\nt$ value ( receipts paid into ! applicable tru/ fund exclud+ transf]s f o!r ,f$]al funds ov] future fiscal ye>s4 7,,ii7 ,exp5ditures & receipts ,= purposes ( subclause 7,i71 exp5ditures & receipts %all include exp5ditures & receipts project$ ?r\gh ! future fiscal ye> describ$ 9 p>agraph 7#ae77;,b74 7iv7 ,limit+ ,= ea* social insurance program1 a fiscal gap report %all sep>ately address ea* item specifi$ 9 clauses 7i71 7ii71 & 7iii7 ( subp>agraph 7,a7 z specifi$ & aft] limit+ ! calculation "u clause 7iii77,i77bb7 to ! clos$ gr\p ( pa/ & curr5t adult program p>ticipants 7z describ$ 9 p>agraph #aa7;,b77i771 bo? taxpay]s & b5efici>ies4 7,c7 ,sc5>ios ,a fiscal gap report %all address ea* item specifi$ 9 clauses 7i71 7ii71 & 7iii7 ( subp>agraph 7,a7 "u-- 7i7 a basel9e e/imate2 & 7ii7 an alt]native sc5>io e/imate4 7,d7 ,am\nts ,a fiscal gap report %all provide in=mation ) respect to ea* item specifi$ 9 clauses 7i71 7ii71 & 7iii7 ( subp>agraph 7,a7-- 7i7 9 pres5t-disc\nt$ doll>s2 7ii7 z p]c5tages ( pres5t-disc\nt$ value ( future gross dome/ic product project$ ?r\gh ! future fiscal ye> describ$ 9 p>agraph 7#ae77;,b72 & 7iii7 z a p]c5tage ( ! am\nt ( taxes project$ to be collect$ "u sections #adja7;b71 #caja7;b71 & #caaa7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf ?r\gh ! future fiscal ye> describ$ 9 p>agraph 7#ae77;,b74 7#i7 ,fiscal gap s5sitivity analysis 7,a7 ,9 g5]al ,! t]m fiscal gap s5sitivity analysis means e/imates ( *anges to ! fiscal gap am\nts specifi$ 9 p>agraph 7#h77;,d7 calculat$ "u alt]native economic & demographic assumptions = a giv5 sc5>io describ$ 9 p>agraph 7#h77;,c74 7,b7 ,requir$ alt]natives ,! alt]native economic assumptions = any fiscal gap s5sitivity analysis %all include ! foll[+3 7i7 ,project$ annual rate ( population gr[? t is #be basis po9ts l>g] & #be basis po9ts small] ?an ! basel9e population gr[?-rate projection specifi$ "u p>agraph 7#ae77;,c74 ,9 mak+ ! e/imates1 ! applicable ag5cy may use reasonable alt]native symmetric basis po9t v>iations ar\nd basel9e population-gr[? projections consi/5t ) unc]ta9ty associat$ ) und]ly+ gr[? compon5ts ( f]tility1 mortality1 & immigration rates4 7ii7 ,project$ annual rates ( labor productivity gr[? t is #ej basis po9ts l>g] & #ej basis po9ts small] ?an ! basel9e labor productivity gr[?-rate projection specifi$ "u p>agraph 7#ae77;,c74 ,9 mak+ ! e/imates1 ! applicable ag5cy may use reasonable alt]native1 symmetric basis-po9t v>iations ar\nd basel9e labor-productivity gr[? rates consi/5t ) unc]ta9ty associat$ ) und]ly+ compon5ts ( inflation rates1 te*nological *ange1 capital int5sity1 & labor effici5cy4 7iii7 ,project$ disc\nt rates t are #ge basis po9ts l>g] & #ge basis po9ts small] ?an ! basel9e long-t]m disc\nt rate projection specifi$ "u p>agraph 7#ae77;,d74 ,9 mak+ ! e/imates1 ! applicable ag5cy may use reasonable alt]native1 symmetric basis-po9t v>iations z appropriate ar\nd basel9e int]e/ rate projections consi/5t ) unc]ta9ty associat$ ) long-t]m gov]nm5t borr[+ rates4 ,all int]e/ rate v>iations report$ %all be consi/5t ) ma9ta9+ a net positive av]age long-t]m int]e/ rate aft] subtract+ ! long-t]m av]age labor productivity gr[? rate ( ! economy ( ! ,unit$ ,/ates4 7#aj7 ,g5]ation ,! t]m g5]ation means a #a-ye> bir? cohort ( individuals ( a giv5 g5d] born dur+ a giv5 fiscal ye>4 7#aa7 ,g5]ational acc\nt 7,a7 ,9 g5]al ,! t]m g5]ational acc\nt means ! actu>ially pres5t-valu$ am\nt p] capita = a giv5 g5]ation ( annual net ,f$]al tax burd5s dur+ t g5]ation's rema9+ lifetime "u a p>ticul> ,f$]al fiscal policy4 7,b7 ,ages ,a report reg>d+ g5]ational acc\nts %all include g5]ational acc\nts =-- 7i7 select$ individual g5]ations born n less ?an #ah ye>s be=e ! report2 & 7ii7 select$ individual g5]ations born or :o w be born aft] ! date t is #ah ye>s be=e ! report1 includ+ ^? born aft] ! budget ye>4 7,c7 ,calculation ,g5]ational acc\nts ( *ildr5 & future g5]ations describ$ 9 subp>agraph 7,b77ii7 %all be calculat$ su* t-- 7i7 _! total ov] all memb]s equals ! sum (-- 7,i7 ,treasury liabilities project$ to be out/&+ at ! end ( ! budget ye>2 & 7,,ii7 ! pres5t value ( project$ discretion>y 7non-transf]7 ,f$]al sp5d+ m9us ! sum ( ! g5]ational acc\nts ( adult g5]ations describ$ 9 subp>agraph 7,b77i72 7ii7 ! ratio ( ! g5]ational acc\nt ( males ( ea* g5]ation among *ildr5 & future g5]ations describ$ 9 subp>agraph 7,b77ii7 to ! g5]ational acc\nt ( females born 9 ! same ye> is set equal to ! ratio ( ! g5]ational acc\nts ( males & females born #ah ye>s be=e ! calculation2 & 7iii7 ! g5]ational acc\nts ( memb]s ( *ildr5 & future g5]ations describ$ 9 subp>agraph 7,b77ii7 increases ) ! ye> ( _! bir?s at ! project$ gr[? rate ( labor productivity4 7#ab7 ,g5]ational acc\nt policy effects 7,a7 ,9 g5]al ,! t]m g5]ational acc\nt policy effects means ! *anges to ! g5]ational acc\nts ( adults describ$ 9 p>agraph 7#aa77;,b77i7 & *ildr5 & future g5]ations describ$ 9 p>agraph 7#aj77;,b77ii7 & to ! g5]ational net-tax-burd5 gap f *anges to p>ticul> 7comb9ations (7 ,f$]al taxes & to p>ticul> 7comb9ations (7 ,f$]al exp5ditures4 7,b7 ,dynamic effects ,calculations ( g5]ational acc\nts policy options %all incorporate dynamic effects f induc$ *anges 9 employm5t1 national sav+1 & capital =mation1 z relevant to ea* p>ticul> policy option describ$ 9 p>agraph 7#g77;,c74 7#ac7 ,g5]ational acc\nt report 7,a7 ,9 g5]al ,! t]m g5]ational acc\nt report means a report t1 9 accordance ) ?is p>agraph1 includes g5]ational acc\nts & a discussion ( g5]ational acc\nt policy effects4 7,b7 ,sc5>ios ,a g5]ational acc\nt report %all address g5]ational acc\nts1 includ+ net ,f$]al tax burd5s1 "u-- 7i7 a basel9e e/imate2 & 7ii7 an alt]native sc5>io e/imate4 7#ad7 ,g5]ational net-tax-burd5 gap ,! t]m g5]ational net-tax-burd5 gap means ! ratios ( ! g5]ational acc\nt ( males & females born #ag ye>s be=e ! budget ye> to ! g5]ational acc\nts ( males & females1 respectively1 born #ah ye>s be=e ! budget ye> m9us #a times #ajj4 7#ae7 ,implicit debt 7,a7 ,9 g5]al ,! t]m implicit debt means ! diff]5ce betwe5-- 7i7 ! disc\nt$ pres5t value ( project$ annual ,f$]al sp5d+ dur+ ! p]iod ( ! budget ye> & n less ?an ! ensu+ #ge fiscal ye>s1 exclud+ sp5d+ = net int]e/ & pr9cipal paym5ts on ,treasury liabilities2 & 7ii7 ! disc\nt$ pres5t value ( ,f$]al tax & non-tax receipts dur+ ! p]iod ( ! budget ye> & n less ?an ! ensu+ #ge fiscal ye>s4 7,b7 ,projection p]iod ,annual ,f$]al non9t]e/ sp5d+ & receipts us$ to calculate implicit debt %all be project$ ?r\gh a future fiscal ye>1 at lea/ #ge ye>s beyond ! budget ye>1 & su* t ! accrual to ! fiscal gap by ext5d+ ! calculation by #a additional fiscal ye> is )9 #j4a p]c5t ( ! fiscal gap )\t ext5d+ ! calculation by #a fiscal ye>4 7,c7 ,f$]al budget projections ,! gr[? ( ,f$]al non9t]e/ sp5d+ & receipts ov] future fiscal ye>s %all be consi/5t ) ! basel9e projections ( population gr[?1 g5]al price inflation 7,p]sonal ,consumption ,exp5ditures index71 & labor-productivity-gr[? factors includ+ te*nological *ange1 capital int5sity1 & labor effici5cy1 z det]m9$ by ! applicable ag5cy4 7,d7 ,disc\nt rates ,= purposes ( calculat+ ! implicit debt1 ! disc\nt rates %all be ! int]e/ rate projections ( ! ,congressional ,budget ,(fice ov] ! projection horizon on ,treasury bonds ) prospective maturity ( at lea/ #bj ye>s & long]4 7#af7 ,net ,f$]al tax burd5 ,! t]m net ,f$]al tax burd5 means ! diff]5ce betwe5 ,f$]al taxes paid & transf] paym5ts receiv$4 7#ag7 ,social insurance program ,! t]m social insurance program-- 7,a7 means a social insurance program t is fund$ out ( a ,f$]al tru/ fund2 & 7,b7 includes ! ,f$]al old-age1 survivors1 & disability insurance b5efits program "u title ,,ii ( ! ,social ,security ,act1 ! ,m$ic>e program "u p>ts ,a & ,b ( title ,,xviii ( ! ,social ,security ,act1 & ! ,m$ic>e ,prescription ,drug ,cov]age "u "p ,d ( title ,,xviii ( ! ,social ,security ,act4 7#ah7 ,treasury liabilities ,! t]m ,treasury liabilities means ! face am\nt ( obligations issu$ "u *apt] #ca ( title #ca1 ,unit$ ,/ates ,code1 & ! face am\nt ( obligations ^: pr9cipal & int]e/ are gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t 7except gu>ante$ obligations held by ! ,secret>y ( ! ,treasury7--z 9 section #caja7;b7 ( title #ca4 4 #c4 ,,cbo annual report 7a7 ,requirem5t 7#a7 ,9 g5]al ,! ,congressional ,budget ,(fice %all produce a fiscal gap & g5]ational acc\nt+ analysis1 :i* %all be report$ z a sep>ate section )9 its annual ,long-,t]m ,budget ,outlook4 7#b7 ,def9itions ,9 ?is subsection1 ! t]ms fiscal gap & g5]ational acc\nt h ! mean+s giv5 su* t]ms 9 subsection 7h7 ( section #bjb ( ! ,congressional ,budget ,act ( #aigd 7#b ,u4,s4,c4 #fjb71 z add$ by section #b4 7b7 ,public report ,! ,director ( ! ,congressional ,budget ,(fice %all po/ ! report describ$ 9 subsection 7a7 on ! ,congressional ,budget ,(fice public website4 #d4 ,,gao annual report 7a7 ,requirem5t 7#a7 ,9 g5]al ,! ,comptroll] ,g5]al %all produce annually a report on fiscal gap & g5]ational acc\nt+ analysis consi/5t ) ! assumptions ( ! ,gov]nm5t ,acc\ntability ,(fice ) respect to basel9e projections ( population gr[?1 g5]al price inflation 7,p]sonal ,consumption ,exp5ditures index71 & labor-productivity-gr[? factors includ+ te*nological *ange1 capital int5sity1 & labor effici5cy4 7#b7 ,def9itions ,9 ?is subsection1 ! t]ms fiscal gap & g5]ational acc\nt h ! mean+s giv5 su* t]ms 9 subsection 7h7 ( section #bjb ( ! ,congressional ,budget ,act ( #aigd 7#b ,u4,s4,c4 #fjb71 z add$ by section #b4 7b7 ,public report ,! ,comptroll] ,g5]al %all po/ ! report describ$ 9 subsection 7a7 on ! ,g5]al ,acc\ntability ,(fice public website4 #e4 ,! ,presid5t's budget ,section #aaje ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a71 by add+ at ! end ! foll[+3 7#dj7 an analysis includ+-- 7,a7 a fiscal gap report & a g5]ational acc\nt report1 includ+ *anges 9 ! fiscal gap & g5]ational acc\nts relative to ! basel9e e/imates = purposes ( ea* report2 7,b7 ,f$]al deficits z ( ! end ( ! fiscal ye> t is #ge ye>s aft] ! budget ye>1 "u a basel9e e/imate & an alt]native sc5>io e/imate2 & 7,c7 out/&+ ,treasury liabilities z ( ! end ( ! fiscal ye> t is #ge ye>s aft] ! budget ye>1 "u a basel9e e/imate & an alt]native sc5>io e/imate4 2 & 7#b7 by add+ at ! end ! foll[+3 7i7 7#a7 ,= purposes ( subsection 7a77#dj71 ! t]ms alt]native sc5>io e/imate1 basel9e e/imate1 fiscal gap1 fiscal gap report1 g5]ational acc\nt1 g5]ational acc\nt report1 & ,treasury liabilities h ! mean+s giv5 su* t]ms 9 section #bjb7;h7 ( ! ,congressional ,budget ,act ( #aigd 7#b ,u4,s4,c4 #fjb7;h774 7#b7 ,= purposes ( subsection 7a77#dj71 ! t]ms def9$ 9 p>agraph 7#a7 %all be calculat$ us+ ! assumptions ( ! ,presid5t ( basel9e projections ( population gr[?1 g5]al price inflation 7,p]sonal ,consumption ,exp5ditures index71 & labor-productivity-gr[? factors includ+ te*nological *ange1 capital int5sity1 & labor effici5cy4 4