H.R.991 - Cost Estimates Improvement Act (119th Congress)
Summary
H.R.991, the Cost Estimates Improvement Act, seeks to amend the Congressional Budget Act of 1974. The amendment would require the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) to include the costs of servicing the public debt in their cost estimates for proposed legislation.
The bill aims to provide a more comprehensive understanding of the financial implications of new legislation.
By including debt servicing costs, lawmakers would have a clearer picture of the long-term financial impact of their decisions.
Expected Effects
The primary effect of this bill would be to change how the CBO and JCT prepare cost estimates. All estimates would now include the cost of servicing the public debt.
This could lead to a more accurate assessment of the true cost of legislation.
It may also influence legislative decisions by highlighting the long-term financial implications of increased borrowing.
Potential Benefits
- Provides a more complete picture of the financial impact of legislation by including debt servicing costs.
- May lead to more fiscally responsible decision-making by Congress.
- Increases transparency and accountability in the budgeting process.
- Could help to reduce the national debt over time by making the cost of borrowing more apparent.
- Enhances the accuracy of budget forecasts.
Most Benefited Areas:
Potential Disadvantages
- May make some legislative proposals appear more expensive, potentially hindering worthwhile projects.
- Could add complexity to the cost estimation process, potentially slowing it down.
- The inclusion of debt servicing costs is already considered during budget debates, so the impact may be marginal.
- Relies on the accuracy of CBO and JCT estimates, which are subject to uncertainty.
- May be perceived as a political tool to discourage spending.
Constitutional Alignment
The bill aligns with the constitutional principle of fiscal responsibility, although the Constitution does not explicitly address budgetary procedures. Article I, Section 8 grants Congress the power to borrow money on the credit of the United States. This power implies a responsibility to manage debt prudently.
The bill does not infringe upon any specific constitutional rights or limitations. It primarily concerns the internal procedures of Congress in evaluating the financial impact of legislation.
Requiring more comprehensive cost estimates can be seen as promoting a more informed exercise of Congress's legislative powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).