"YES" on the Pro-Growth Budgeting Act
"YES" on the Pro-Growth Budgeting Act
Next week, the House will vote on the Pro-Growth Budgeting Act of 2011 (H.R. 3582). The bill would require the Congressional Budget Office (CBO) to include a dynamic score, in addition to a static score, for any "major bill or resolution." A dynamic analysis would include potential economic impacts (i.e., impact on economic growth, employment, etc.) and the subsequent impact on government revenue.
There is near universal agreement that the federal government's tax and spend policies have an impact on America's economy, but Congress's official "scorekeeper" does not address those impacts. As a result, Congress often debates legislation without understanding the full economic impact.
The static score contains an inherent budget bias against pro-growth tax cuts, which history has shown to be incorrect. By requiring a full "macroeconomic impact analysis" for major legislation, the Pro-Growth Budgeting Act will give Congress—and the American people—a complete and accurate analysis of what is being proposed and debated by Congress. In addition to transparency, dynamic scoring will force Congress to come to terms with their impact on the U.S. economy.
Heritage Action supports H.R. 3585 and will include it as a key vote on our scorecard.
Related:
Heritage Action's Scorecard
Heritage Testimony: It is Time to Include Dynamic Economic Analysis
"YES" on the Pro-Growth Budgeting Act