text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Pro-Growth Budgeting Act of 2012''.
  
  SEC. 2. MACROECONOMIC IMPACT ANALYSES.
  
      (a) In General.--Part A of title IV of the Congressional Budget Act 
  of 1974 is amended by adding at the end the following new section:
  
            ``macroeconomic impact analysis of major legislation
  
      ``Sec. 407.  (a) Congressional Budget Office.--The Congressional 
  Budget Office shall, to the extent practicable, prepare for each major 
  bill or resolution reported by any committee of the House of 
  Representatives or the Senate (except the Committee on Appropriations 
  of each House), as a supplement to estimates prepared under section 
  402, a macroeconomic impact analysis of the budgetary effects of such 
  bill or resolution for the ten fiscal-year period beginning with the 
  first fiscal year for which an estimate was prepared under section 402 
  and each of the next three ten fiscal-year periods. Such estimate shall 
  be predicated upon the supplemental projection described in section 
  202(e)(4). The Director shall submit to such committee the 
  macroeconomic impact analysis, together with the basis for the 
  analysis. As a supplement to estimates prepared under section 402, all 
  such information so submitted shall be included in the report 
  accompanying such bill or resolution.
      ``(b) Economic Impact.--The analysis prepared under subsection (a) 
  shall describe the potential economic impact of the applicable major 
  bill or resolution on major economic variables, including real gross 
  domestic product, business investment, the capital stock, employment, 
  interest rates, and labor supply. The analysis shall also describe the 
  potential fiscal effects of the bill or resolution, including any 
  estimates of revenue increases or decreases resulting from changes in 
  gross domestic product. To the extent practicable, the analysis should 
  use a variety of economic models in order to reflect the full range of 
  possible economic outcomes resulting from the bill or resolution. The 
  analysis (or a technical appendix to the analysis) shall specify the 
  economic and econometric models used, sources of data, relevant data 
  transformations, and shall include such explanation as is necessary to 
  make the models comprehensible to academic and public policy analysts.
      ``(c) Definitions.--As used in this section--
              ``(1) the term `macroeconomic impact analysis' means--
                      ``(A) an estimate of the changes in economic 
                  output, employment, interest rates, capital stock, and 
                  tax revenues expected to result from enactment of the 
                  proposal;
                      ``(B) an estimate of revenue feedback expected to 
                  result from enactment of the proposal; and
                      ``(C) a statement identifying the critical 
                  assumptions and the source of data underlying that 
                  estimate;
              ``(2) the term `major bill or resolution' means any bill or 
          resolution if the gross budgetary effects of such bill or 
          resolution for any fiscal year in the period for which an 
          estimate is prepared under section 402 is estimated to be 
          greater than .25 percent of the current projected gross 
          domestic product of the United States for any such fiscal year;
              ``(3) the term `budgetary effect', when applied to a major 
          bill or resolution, means the changes in revenues, outlays, 
          deficits, and debt resulting from that measure; and
              ``(4) the term `revenue feedback' means changes in revenue 
          resulting from changes in economic growth as the result of the 
          enactment of any major bill or resolution.''.
      (b) Conforming Amendment.--The table of contents set forth in 
  section 1(b) of the Congressional Budget Act of 1974 is amended by 
  inserting after the item relating to section 406 the following new 
  item:
  
  ``Sec. 407. Macroeconomic impact analysis of major legislation.''.
  
  SEC. 3. ADDITIONAL CBO REPORT TO BUDGET COMMITTEES.
  
      Section 202(e) of the Congressional Budget Act of 1974 is amended 
  by adding at the end the following new paragraphs:
              ``(4)(A) After the President's budget submission under 
          section 1105(a) of title 31, United States Code, in addition to 
          the baseline projections, the Director shall submit to the 
          Committees on the Budget of the House of Representatives and 
          the Senate a supplemental projection assuming extension of 
          current tax policy for the fiscal year commencing on October 1 
          of that year with a supplemental projection for the 10 fiscal-
          year period beginning with that fiscal year, assuming the 
          extension of current tax policy.
              ``(B) For the purposes of this paragraph, the term `current 
          tax policy' means the tax policy in statute as of December 31 
          of the current year assuming--
                      ``(i) the budgetary effects of measures extending 
                  the Economic Growth and Tax Relief Reconciliation Act 
                  of 2001;
                      ``(ii) the budgetary effects of measures extending 
                  the Jobs and Growth Tax Relief Reconciliation Act of 
                  2003;
                      ``(iii) the continued application of the 
                  alternative minimum tax as in effect for taxable years 
                  beginning in 2011 pursuant to title II of the Tax 
                  Relief, Unemployment Insurance Reauthorization, and Job 
                  Creation Act of 2010, assuming that for taxable years 
                  beginning after 2011 the exemption amount shall equal--
                              ``(I) the exemption amount for taxable 
                          years beginning in 2011, as indexed for 
                          inflation; or
                              ``(II) if a subsequent law modifies the 
                          exemption amount for later taxable years, the 
                          modified exemption amount, as indexed for 
                          inflation; and
                      ``(iv) the budgetary effects of extending the 
                  estate, gift, and generation-skipping transfer tax 
                  provisions of title III of the Tax Relief, Unemployment 
                  Insurance Reauthorization, and Job Creation Act of 
                  2010.
              ``(5) On or before July 1 of each year, the Director shall 
          submit to the Committees on the Budget of the House of 
          Representatives and the Senate, the Long-Term Budget Outlook 
          for the fiscal year commencing on October 1 of that year and at 
          least the ensuing 40 fiscal years.''.
  
              Passed the House of Representatives February 2, 2012.
  
              Attest:
  
                                                   KAREN L. HAAS,
  
                                                                   Clerk.
target: Pro-Growth Budgeting Act of 2012 - (Sec. 2) Amends the Congressional Budget Act of 1974 (CBA) to require the Congressional Budget Office (CBO) to prepare for each major bill or resolution reported by any congressional committee (except the congressional appropriations committees), as a supplement to CBO cost estimates, a macroeconomic impact analysis of the budgetary effects of such legislation for the 10-fiscal year period beginning with the first fiscal year for which such estimate was prepared and each of the next three 10-fiscal year periods.
  
  Defines "major bill or resolution" as any bill or resolution whose budgetary effects, for any fiscal year in the period for which a CBO cost estimate is prepared, is estimated to be greater than .25% of the current projected U.S. gross domestic product (GDP) for that fiscal year.
  
  Requires the analysis to describe: (1) the potential economic impact of the bill or resolution on major economic variables, including real GDP, business investment, the capital stock, employment, interest rates, and labor supply; and (2) the potential fiscal effects of the measure, including any estimates of revenue increases or decreases resulting from changes in GDP.
  
  Requires the analysis (or a technical appendix to it) to specify the economic and econometric models used, sources of data, relevant data transformations, as well as any explanation necessary to make the models comprehensible to academic and public policy analysts. (Sec. 3) Amends CBA to require the CBO Director, after the President's budget submission and in addition to the baseline projections, to report a supplemental projection to the congressional budget committees, assuming extension of current tax policy for the fiscal year commencing on October 1 of that year, with a supplemental projection for the 10-fiscal year period beginning with that fiscal year, again assuming the extension of current tax policy.
  
   Defines "current tax policy" as the tax policy in statute as of December 31 of the current year, assuming: (1) the budgetary effects of measures extending the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003; (2) the continued application of the alternative minimum tax (AMT) as in effect for taxable years beginning in 2011, with a specified assumption for taxable years beginning after 2011; and (3) the budgetary effects of extending the estate, gift, and generation-skipping transfer tax provisions of title III of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
  
  Requires CBO to report to such committees, on or before July 1 of each year, the Long-Term Budget Outlook for: (1) the fiscal year commencing on October 1 of that year, and (2) at least the ensuing 40 fiscal years.
feat_title: To amend the Congressional Budget Act of 1974 to provide for macroeconomic analysis of the impact of legislation.