Congressman Tom Price, M.D (R-GA), vice chairman of the House Committee on the Budget, introduced the Pro-Growth Budgeting Act (H.R. 1874) today. This legislation would require the Congressional Budget Office (CBO) to analyze the longer-term economic impact of legislation that is estimated to have a budgetary impact of more than 0.25 percent of the Gross Domestic Product (GDP).
By statute, any proposed legislation that meets this threshold will enact a trigger mandating CBO to perform a dynamic analysis that will show the macroeconomic impact of the bill. This analysis will come in an addition to the traditional CBO scoring that will remain unchanged.
"The path to producing real, positive solutions for American families begins with having an accurate accounting of how proposed policies and reforms will impact the economy and the nation's financial future," said Congressman Price. "The Pro-Growth Budgeting Act gives policymakers a dynamic assessment of how legislation under consideration will affect the nation's gross domestic product, job creation, and business investment. Currently, the Congressional Budget Office uses only a "static' model to measure the fiscal impact of a given piece of legislation. That is a model that has proven to be incapable of providing the type of macroeconomic diagnosis folks need to make sure we are pursuing policies that will help generate economic opportunity and bring down the nation's debt. The Pro-Growth Budgeting Act is part of a larger and vital effort to reform the congressional budget process to help policymakers tackle the debt and promote America's entrepreneurial spirit."
"To make good legislation, we need to know what the full effects of that legislation will be," said House Budget Committee Chairman Paul Ryan (R-WI). "That's why I strongly support Vice Chairman Price's proposal. It would give lawmakers the information they need to make good policy."
Congressman Price first introduced this legislation during the 112th Congress. As in the previous Congress, the Pro-Growth Budgeting Act is part of a larger package of budget process reforms being introduced by members of the House Budget Committee. Additionally, Senators Kelly Ayotte (R-NH), Marco Rubio (R-FL), and Ron Johnson (R-WI) have introduced the Pro-Growth Budgeting Act in the U.S. Senate.