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“YES” on H.R. 3582, the Pro-Growth Budgeting Act.
February 2, 2012
NTU urges all Representatives to vote “YES” on H.R. 3582, the "Pro-Growth Budgeting Act." Introduced by Rep. Tom Price (R-GA), this bill would require the Congressional Budget Office (CBO) to conduct a full “macroeconomic impact analysis,” also known as “dynamic scoring,” on any legislation that would have a budgetary impact of more than .25 percent of Gross Domestic Product (GDP).
NTU has long supported dynamic scoring as a means of providing taxpayers and policymakers with a more complete picture of the effects of a piece of legislation. Currently, CBO primarily employs a “static scoring” method, which makes revenue estimates with the unrealistic assumption that behaviors will not substantially change with alterations in tax policy. Such an assumption often results in overestimations of lost revenue due to tax cuts because it fails to account for the higher economic growth resulting from less burdensome tax policies. Likewise, it tends to overestimate revenue gained from tax hikes because it does not factor in legal tax avoidance strategies.
Although NTU would prefer to see a lower GDP threshold for legislation to receive a dynamic score, the Pro-Growth Budgeting Act is a positive step toward introducing a measure of accuracy and honesty in the budget process.
Roll call votes on H.R. 3582 will be significantly weighted in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Government Affairs Manager Brandon Greife at (703) 683-5700