Congressional Bill
119th CONGRESS
2d Session
H.R. ___
To amend the Congressional Budget and Impoundment Control Act of 1974 and the Internal
Revenue Code of 1986 to require the Congressional Budget Office
and the Joint Committee on Taxation to prepare and publicly
disclose household-level fiscal impact statements for legislation
that would change Federal tax liability or reduce Federal benefit
programs used to offset revenue changes, and for other purposes.
_______________________________________________________
IN THE HOUSE OF REPRESENTATIVES
Mr./Ms. [___] introduced the following bill;
which was referred to the Committee on
[Rules/Budget/Ways and Means]
_______________________________________________________
A BILL
To amend the Congressional Budget Act of 1974 and the Internal
Revenue Code of 1986 to require the Congressional Budget Office
and the Joint Committee on Taxation to prepare and publicly
disclose household-level fiscal impact statements for legislation
that would change Federal tax liability or reduce Federal benefit
programs used to offset revenue changes, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Tax Forecast Transparency
Act of 2026".
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Congressional Budget Act of 1974 (Public Law
93-344; 2 U.S.C. 601 et seq.) established the
Congressional Budget Office to provide Congress with
objective budgetary and economic analysis, yet current
law does not require household-level distributional
impact analyses of tax legislation to be prepared or
made publicly available before a vote.
(2) The Joint Committee on Taxation provides official
revenue estimates for all tax legislation considered by
Congress, but distributional analysis showing the
effects of tax law changes across income groups is not
a legally required task and is produced only upon
request.
(3) Tax legislation frequently contains provisions
that phase in, phase out, sunset, or are triggered by
economic conditions over multiple years, such that the
impact on a household in the first year of enactment
may differ substantially from the impact in subsequent
years.
(4) Tax reductions are frequently offset, in whole
or in part, by reductions in Federal benefit programs,
including but not limited to programs providing
healthcare, nutrition assistance, education funding,
and housing assistance, and the net fiscal effect of
such combined changes on households at each income
level may differ significantly from the effect of the
tax change alone.
(5) The people of the United States are entitled to
know, before their elected representatives vote on
legislation that changes their tax liability, the full
and honest fiscal impact of such legislation on
households at every income level, in every State, and
over a meaningful time horizon.
(6) Transparency in the legislative process is
essential to democratic accountability, and Members of
Congress cannot be held accountable for the fiscal
consequences of their votes if those consequences are
not clearly disclosed to the public in advance.
SEC. 3. DEFINITIONS.
In this Act:
(1) COVERED LEGISLATION.--The term "covered
legislation" means any bill, joint resolution,
amendment, conference report, or amendment between the
Houses that--
(A) would result in a change in Federal revenue
(as estimated by the Joint Committee on Taxation
or the Congressional Budget Office) of
$1,000,000,000 or more over the 5-fiscal-year
period beginning with the first fiscal year for
which the legislation would be effective; or
(B) would result in a change in Federal revenue
of any amount and contains or is considered
contemporaneously with legislation that would
reduce direct spending for one or more covered
Federal benefit programs.
(2) COVERED FEDERAL BENEFIT PROGRAM.--The term
"covered Federal benefit program" means any of the
following:
(A) The Medicare program under title XVIII of
the Social Security Act (42 U.S.C. 1395 et seq.).
(B) The Medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.).
(C) The supplemental nutrition assistance
program under the Food and Nutrition Act of 2008
(7 U.S.C. 2011 et seq.).
(D) Premium tax credits and cost-sharing
reductions under sections 36B and 1402 of the
Patient Protection and Affordable Care Act (26
U.S.C. 36B; 42 U.S.C. 18071).
(E) The supplemental security income program
under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.).
(F) Federal Pell Grants under section 401 of
the Higher Education Act of 1965 (20 U.S.C.
1070a).
(G) The program of block grants for States for
temporary assistance for needy families under part
A of title IV of the Social Security Act (42
U.S.C. 601 et seq.).
(H) The special supplemental nutrition program
for women, infants, and children under section 17
of the Child Nutrition Act of 1966 (42 U.S.C.
1786).
(I) Federal housing assistance programs under
the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), including the program for
tenant-based rental assistance under section 8 of
such Act (42 U.S.C. 1437f).
(J) The Children's Health Insurance Program
under title XXI of the Social Security Act (42
U.S.C. 1397aa et seq.).
(K) Any other Federal program providing direct
benefits to individuals that the Director of the
Congressional Budget Office, in consultation with
the Chief of Staff of the Joint Committee on
Taxation, determines to be appropriate for
inclusion, based on the scope and nature of the
covered legislation.
(3) HOUSEHOLD IMPACT STATEMENT.--The term
"Household Impact Statement" means the analysis
required under section 4 of this Act.
(4) INCOME CATEGORY.--The term "income category"
means each of the following categories of expanded
income (as defined by the Joint Committee on
Taxation):
(A) Less than $10,000.
(B) $10,000 to $20,000.
(C) $20,000 to $30,000.
(D) $30,000 to $40,000.
(E) $40,000 to $50,000.
(F) $50,000 to $75,000.
(G) $75,000 to $100,000.
(H) $100,000 to $200,000.
(I) $200,000 to $500,000.
(J) $500,000 to $1,000,000.
(K) $1,000,000 and over.
(5) NET HOUSEHOLD FISCAL IMPACT.--The term "net
household fiscal impact" means the combined effect on a
household of--
(A) any change in Federal tax liability
(including income taxes, payroll taxes, and excise
taxes); and
(B) any change in the value of benefits received
under covered Federal benefit programs, expressed
as a dollar amount.
SEC. 4. HOUSEHOLD IMPACT STATEMENT REQUIRED FOR COVERED
LEGISLATION.
(a) Preparation of Household Impact Statement.--
(1) IN GENERAL.--For any covered legislation, the
Director of the Congressional Budget Office, in
coordination with the Chief of Staff of the Joint
Committee on Taxation, shall prepare a Household Impact
Statement in accordance with this section.
(2) TIMING.--
(A) COMMITTEE-REPORTED LEGISLATION.--In the case
of covered legislation ordered reported by a
committee of the Senate or the House of
Representatives, the Household Impact Statement
shall be completed and made publicly available not
later than 72 hours before the covered legislation
is scheduled for consideration on the floor of the
respective House.
(B) AMENDMENTS AND SUBSTITUTES.--In the case of
a manager's amendment, amendment in the nature of a
substitute, or conference report that constitutes
covered legislation, the Household Impact Statement
shall be completed and made publicly available not
later than 72 hours before a vote on adoption of
such amendment or conference report.
(C) RECONCILIATION LEGISLATION.--In the case of
a reconciliation bill or resolution under section
310 of the Congressional Budget Act of 1974 (2
U.S.C. 641) that constitutes covered legislation,
the Household Impact Statement shall be completed
and made publicly available not later than 72 hours
before the covered legislation is scheduled for
consideration on the floor of the respective House.
(b) Contents of Household Impact Statement.--Each
Household Impact Statement shall include the following:
(1) FIVE-YEAR DISTRIBUTIONAL FORECAST.--A
year-by-year estimate, for each of the 5 fiscal years
beginning with the first fiscal year for which the
covered legislation would be effective, of the change
in Federal tax liability for each income category,
expressed as--
(A) the aggregate change in Federal tax
liability for all tax filing units in such income
category;
(B) the average change in Federal tax liability
per tax filing unit in such income category; and
(C) the change in the average Federal tax rate
for tax filing units in such income category.
(2) IDENTIFICATION OF SCHEDULED CHANGES.--A clear
and specific identification of any provision in the
covered legislation that would--
(A) sunset, expire, or terminate during or after
the 5-fiscal-year period described in paragraph
(1);
(B) phase in or phase out during such period;
(C) change rates, thresholds, or eligibility
criteria during such period based on a schedule
established in the legislation;
(D) be triggered by an economic indicator,
revenue target, or other contingency; or
(E) revert to prior law upon expiration,
including a description of the tax liability that
would result under such prior law for each income
category.
(3) BENEFIT OFFSET ANALYSIS.--If the covered
legislation includes, or is considered
contemporaneously with, provisions that would reduce
direct spending for one or more covered Federal benefit
programs, the Household Impact Statement shall
include--
(A) for each covered Federal benefit program
affected, a year-by-year estimate for each of the
5 fiscal years described in paragraph (1) of the
aggregate reduction in benefits for households in
each income category;
(B) the average reduction in benefits per
affected household in each income category for each
such fiscal year;
(C) the number of individuals estimated to lose
eligibility for, or experience a reduction in
benefits under, each covered Federal benefit
program, disaggregated by income category; and
(D) a net household fiscal impact calculation
for each income category for each such fiscal year,
showing the combined effect of the change in tax
liability under paragraph (1) and the change in
benefits under this paragraph, expressed as--
(i) the aggregate net fiscal impact for all
households in such income category;
(ii) the average net fiscal impact per
household in such income category; and
(iii) a clear statement, for each income
category, of whether the net fiscal impact is
positive (a net gain) or negative (a net cost)
for households in such category.
(4) STATE-LEVEL ANALYSIS.--For each of the 50
States and the District of Columbia, an estimate of--
(A) the aggregate change in Federal tax
liability for tax filing units in such State for
each of the 5 fiscal years described in paragraph
(1);
(B) the average change in Federal tax liability
per tax filing unit in such State for each such
fiscal year; and
(C) if a benefit offset analysis is required
under paragraph (3), the aggregate net household
fiscal impact for households in such State for each
such fiscal year.
(5) PLAIN-LANGUAGE SUMMARY.--A plain-language
summary, written at a reading level accessible to the
general public (not higher than an 8th-grade reading
level, as measured by the Flesch-Kincaid readability
test or a comparable standard), that--
(A) describes the overall effect of the covered
legislation on households at each income category
in each year of the 5-fiscal-year period;
(B) identifies any year in which a tax reduction
provided in the first year is reduced, eliminated,
or reversed for any income category;
(C) identifies any income category for which the
net household fiscal impact (taking into account
both tax changes and benefit changes) is negative
in any year of the 5-fiscal-year period; and
(D) includes a statement in the following form:
"If you earn between $[lower bound] and $[upper
bound], this legislation is estimated to [increase/
decrease] your Federal taxes by an average of
$[amount] in [year]. Taking into account changes to
[program names], your net [gain/cost] is estimated
to be $[amount] in [year]."
(c) Methodology and Assumptions.--
(1) TAX ESTIMATES.--All estimates of changes in
Federal tax liability shall be prepared by the Joint
Committee on Taxation using the microsimulation models
and methodology described in the most recent edition of
the Joint Committee on Taxation's overview of revenue
estimating procedures.
(2) BENEFIT ESTIMATES.--All estimates of changes in
benefits under covered Federal benefit programs shall
be prepared by the Congressional Budget Office using
its standard estimating methodology.
(3) COORDINATION.--The Director of the
Congressional Budget Office and the Chief of Staff of
the Joint Committee on Taxation shall jointly establish
procedures for coordinating the preparation of
Household Impact Statements, including procedures for
reconciling differences in assumptions, income
classifications, and time periods.
(4) ASSUMPTIONS DISCLOSED.--Each Household Impact
Statement shall include a clear disclosure of all
material assumptions used in preparing the estimates,
including assumptions regarding--
(A) economic growth, inflation, and interest
rates;
(B) behavioral responses of taxpayers;
(C) participation rates in covered Federal
benefit programs; and
(D) the interaction between tax provisions and
benefit eligibility.
SEC. 5. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF
1974.
(a) Additional Duties of the Congressional Budget
Office.--Section 202 of the Congressional Budget Act of
1974 (2 U.S.C. 602) is amended by adding at the end the
following:
"(h) Household Impact Statements.--
"(1) IN GENERAL.--The Director shall, in
coordination with the Chief of Staff of the Joint
Committee on Taxation, prepare Household Impact
Statements for covered legislation as required under
section 4 of the Tax Forecast Transparency Act of
2026.
"(2) DEFINITIONS.--For purposes of this subsection,
the terms 'covered legislation' and 'Household Impact
Statement' have the meanings given such terms in
section 3 of the Tax Forecast Transparency Act of
2026.".
(b) Public Access.--Section 203 of the Congressional
Budget Act of 1974 (2 U.S.C. 603) is amended by adding at
the end the following:
"(e) Household Impact Statements.--The Director shall
make each Household Impact Statement prepared under section
202(h) available to the public on the website of the
Congressional Budget Office and the Joint Committee on Taxationin a searchable, downloadable,
and machine-readable format not later than the time such
statement is transmitted to prepare andthe relevant committee or
publicly disclose a five-year household impact forecast for any
legislation that would alter Federal tax liability or reduce Federal
benefit programs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr./Ms. __________ introduced the following bill; which was referred
to the Committee on the Budget, the Committee on Ways and Means,
and the Committee on Rules
_______________________________
A BILL
To amend the Congressional Budget and Impoundment Control Act of 1974
and the Internal Revenue Code of 1986 to require the Congressional
Budget Office and the Joint Committee on Taxation to prepare and
publicly disclose a five-year household impact forecast for any
legislation that would alter Federal tax liability or reduce Federal
benefit programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Five-Year Tax Forecast
Transparency Act of 2026".chamber.".
SEC. 2. FINDINGS.6. AMENDMENT TO THE INTERNAL REVENUE CODE OF 1986.
Congress finds the (a) Additional Duty of the Joint Committee on
Taxation.--Section 8022 of the Internal Revenue Code of
1986 (26 U.S.C. 8022) is amended by adding at the end the
following:
(1) The American people have"(5) HOUSEHOLD IMPACT STATEMENTS.--
"(A) IN GENERAL.--The Joint Committee shall, in
coordination with the Director of the Congressional
Budget Office, prepare the tax liability components
of Household Impact Statements for covered
legislation as required under section 4 of the Tax
Forecast Transparency Act of 2026.
"(B) DISTRIBUTIONAL ANALYSIS REQUIRED.--The
distributional analysis prepared by the Joint
Committee under subparagraph (A) shall include, for
each income category (as defined in section 3(4) of
the Tax Forecast Transparency Act of 2026), the
information described in section 4(b)(1) of such
Act.
"(C) PUBLIC AVAILABILITY.--Notwithstanding any
other provision of law, the distributional analysis
and other information prepared by the Joint
Committee under this paragraph shall be made
publicly available at the same time and in the same
manner as the Household Impact Statement of which
it is a fundamental right to
understand the full fiscal consequences of legislation
enacted by their elected representatives before such
legislation is voted upon.
(2) Tax legislation frequently contains provisions
that phase in, phase out, sunset, or trigger changes in
tax rates, credits, deductions, or exemptions over
multiple years, such that the impact on households in the
first year of enactment may differ substantially from the
impact in subsequent years.
(3) Tax reductions are frequently offset, in whole or
in part, by reductions in Federal benefit programs,
including but not limited to programs under the
Supplemental Nutrition Assistance Program, Medicaid,
Medicare, Federal student financial assistance, and other
programs upon which American households depend.
(4) Existing law does not require the Congressional
Budget Office or the Joint Committee on Taxation to
produce or publicly disclose a year-by-year distributional
analysis showing the combined net household impact of tax
changes and related benefit reductions across income
groups and States.
(5) Distributional analysis by the Joint Committee on
Taxation is currently performed on a discretionary basis
and is not a legally mandated component of the legislative
process for tax legislation.
(6) Without comprehensive, publicly available
forecasts, Members of Congress and the American public
cannot make fully informed judgments about whether proposed
legislation will, on net, benefit or harm households at
each income level over the duration of the legislation's
effects.part.".
SEC. 3. DEFINITIONS.7. POINTS OF ORDER.
(a) In the House of Representatives.--
(1) POINT OF ORDER.--It shall not be in order in
the House of Representatives to consider covered
legislation unless the Household Impact Statement
required under section 4 has been publicly available
for not less than 72 hours.
(2) WAIVER.--The point of order described in
paragraph (1) may be waived or suspended in the House
of Representatives only by a specific provision in a
special rule reported by the Committee on Rules, and
any such special rule shall include a statement
explaining why the Household Impact Statement was not
available.
(b) In the Senate.--
(1) POINT OF ORDER.--It shall not be in order in
the Senate to proceed to the consideration of covered
legislation unless the Household Impact Statement
required under section 4 has been publicly available
for not less than 72 hours.
(2) WAIVER.--The point of order described in
paragraph (1) may be waived or suspended in the Senate
only by an affirmative vote of three-fifths of the
Members, duly chosen and sworn.
(3) APPEAL.--An affirmative vote of three-fifths of
the Members, duly chosen and sworn, shall be required
to sustain an appeal of the ruling of the Chair on a
point of order raised under this Act:subsection.
(c) DISPOSITION OF POINT OF ORDER IN THE SENATE.--
(1) COVERED LEGISLATION.--The term "covered
legislation" meansIN GENERAL.--If a point of order is sustained
under subsection (b), the covered legislation shall be
returned to the calendar until such time as the
Household Impact Statement has been publicly available
for not less than 72 hours.
(2) SESSION DAYS.--For purposes of this section,
the 72-hour period shall be calculated based on
calendar hours, not legislative days.
SEC. 8. ONLINE HOUSEHOLD IMPACT TOOL.
(a) Establishment.--Not later than 1 year after the
date of enactment of this Act, the Director of the
Congressional Budget Office, in consultation with the Chief
of Staff of the Joint Committee on Taxation, shall
establish and maintain a publicly accessible, interactive
online tool (referred to in this section as the "Household
Impact Tool") on the website of the Congressional Budget
Office.
(b) Functionality.--The Household Impact Tool shall
allow any bill, joint resolution, amendment,
conference report,individual to--
(1) select covered legislation that is pending
before or amendment between the Houses that--
(A) would amend any provision of the Internal
Revenue Code of 1986 inhas been passed by either House of Congress;
(2) enter the individual's State of residence and
approximate income category; and
(3) receive a manner that would increase
or decrease Federal tax liability for any class of
individual taxpayers;
(B) would modify, reduce, or eliminate funding
for, or eligibility for, any Federal benefit program;
or
(C) contains any combination of the provisions
described in subparagraphs (A) and (B).
(2) FEDERAL BENEFIT PROGRAM.--The term "Federal
benefit program" means any program that provides direct
payments, subsidies, tax expenditures, vouchers, or
in-kind benefits to individuals or households, including
but not limited to--
(A) the supplemental nutrition assistance program
under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
(B) the program of medical assistance under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.);
(C) the Medicare program under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.);
(D) Federal Pell Grants under section 401 of the
Higher Education Act of 1965 (20 U.S.C. 1070a);
(E) premium tax credits under section 36B of the
Internal Revenue Code of 1986 (26 U.S.C. 36B);
(F) the earned income tax credit under section 32
of the Internal Revenue Code of 1986 (26 U.S.C. 32);
(G) the child tax credit under section 24 of the
Internal Revenue Code of 1986 (26 U.S.C. 24);
(H) housing assistance programs under the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(I) the supplemental security income program
under title XVI of the Social Security Act (42 U.S.C.
1381 et seq.);
(J) the program of block grants for States for
temporary assistance for needy families under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.); and
(K) any other Federal program identified by the
Director of the Congressional Budget Office as
providing direct or indirect financial benefits to
individuals or households.
(3) FIVE-YEAR HOUSEHOLD IMPACT FORECAST.--The term
"Five-Year Household Impact Forecast" means the analysis
required under section 4 of this Act.
(4) INCOME GROUP.--The term "income group" means each
of the following categories of annual household income:
(A) Less than $15,000.
(B) $15,000 to $30,000.
(C) $30,000 to $50,000.
(D) $50,000 to $75,000.
(E) $75,000 to $100,000.
(F) $100,000 to $150,000.
(G) $150,000 to $200,000.
(H) $200,000 to $500,000.
(I) $500,000 to $1,000,000.
(J) $1,000,000 and above.
(5) NET HOUSEHOLD IMPACT.--The term "net household
impact" means the combined effect on a householdplain-language estimate of--
(A) anythe estimated change in the individual's
Federal tax liability
(including income taxes, payroll taxes, and excise
taxes); and for each year of the
5-fiscal-year period covered by the Household
Impact Statement;
(B) anythe estimated change in the value of
benefits the individual may receive under covered
Federal benefits
received benefit programs for each such year; and
(C) the estimated net household fiscal impact
for each such year.
(c) Disclaimer.--The Household Impact Tool shall
prominently display a disclaimer stating that the estimates
provided are based on averages for the selected income
category and State and do not constitute individualized tax
or for which the household wouldfinancial advice.
(d) Accessibility.--The Household Impact Tool shall
comply with section 508 of the Rehabilitation Act of 1973
(29 U.S.C. 794d) and shall be eligible,
expressed in dollar terms.
(6) SUNSET PROVISION.--The term "sunset provision"
means any provision of covered legislation that would
cause a tax rate, credit, deduction, exemption, or
benefit level to expire, revert, or change automatically
on a specified date or upon the occurrence of a specified
condition.
(7) PHASE-OUT PROVISION.--The term "phase-out
provision" means any provision of covered legislation
under which a tax benefit or program benefit is gradually
reduced or eliminated as a taxpayer's income increases
above a specified threshold.
(8) TRIGGER PROVISION.--The term "trigger provision"
means any provision of covered legislation under which a
tax rate, credit, deduction, exemption, or benefit level
changes automatically upon the occurrence of a specified
economic condition, including but not limited to changes
in the gross domestic product, the unemployment rate, or
the Federal debt-to-GDP ratio.
SEC. 4. FIVE-YEAR HOUSEHOLD IMPACT FORECAST REQUIREMENT.
(a) Amendment to the Congressional Budget Act of 1974.--available in English and
Title IV of the Congressional Budget and Impoundment Control
Act of 1974 (2 U.S.C. 651 et seq.) is amended by inserting
after section 402 the following new section:
"SEC. 403. FIVE-YEAR HOUSEHOLD IMPACT FORECAST.
"(a) Requirement.--
"(1) IN GENERAL.--For any covered legislation (as
defined in section 3 of the Five-Year Tax Forecast
Transparency Act of 2026) that is reported by any
committee of the House of Representatives or the Senate,
or that is proposed as an amendment on the floor of either
House, the Director of the Congressional Budget Office,
in consultation with the Chief of Staff of the Joint
Committee on Taxation, shall prepare and make publicly
available a Five-Year Household Impact Forecast not later
than 72 hours before such legislation is scheduled for a
vote by the full House of Representatives or the full
Senate, as applicable.
"(2) RECONCILIATION AND OMNIBUS LEGISLATION.--In the
case of any reconciliation bill under section 310 of this
Act, or any omnibus legislation containing provisions
described in subparagraph (A), (B), or (C) of section
3(1) of the Five-Year Tax Forecast Transparency Act of
2026, the Five-Year Household Impact Forecast shall be
prepared for each such provision individually and for the
legislation as a whole.
"(b) Contents of Forecast.--Each Five-YearSpanish.
(e) Data Format.--All data underlying the Household
Impact ForecastTool shall include the following:
"(1) YEAR-BY-YEAR TAX IMPACT ANALYSIS.--For each of
the 5 fiscal years beginning with the first fiscal year
in which the covered legislation would take effect, an
estimate of the change in Federal tax liabilitybe made available in open, machine-
readable formats for a
representative household in each income group (as defined
in section 3(4) of the Five-Year Tax Forecast
Transparency Act of 2026), disaggregated by--
"(A) filing status (single, married filing
jointly, married filing separately, and head of
household); and
"(B) State of residence, reflecting differences
in State and local tax deductibility, cost of living,
and other factors that cause the Federal tax impact
of legislation to varydownload by State.
"(2) IDENTIFICATION OF SUNSET, PHASE-OUT, AND
TRIGGER PROVISIONS.--A clear and specific identification
of each sunset provision, phase-out provision, and trigger
provision (as defined in section 3 of the Five-Year Tax
Forecast Transparency Act of 2026) contained in the
covered legislation, including--
"(A) the date or condition upon which each such
provision takes effect;
"(B) the specific change in tax rates, credits,
deductions, exemptions, or benefit levels that would
result; and
"(C) the estimated dollar impact of each such
provision on a representative household in each
income group for each year of the forecast period.
"(3) BENEFIT REDUCTION OFFSET ANALYSIS.--If the
covered legislation includes any provision that would
reduce, eliminate, or restrict eligibility for any Federal
benefit program (as defined in section 3(2) of the
Five-Year Tax Forecast Transparency Act of 2026), the
forecast shall include--
"(A) an identification of each Federal benefit
program affected and the estimated reduction in
benefits, expressed in aggregate dollar terms and as
a per-household average, for each income group and
for each of the 5 fiscal years of the forecast
period;
"(B) a comparison, for each income group and for
each year of the forecast period, of--
"(i) the estimated tax reduction (if any)
provided by the covered legislation; and
"(ii) the estimated reduction in Federal
benefits resulting from the covered legislation;
expressed as a net household impact in dollar
terms; and
"(C) a clear statement, in plain language, for
each income group, indicating whether the net
household impact of the covered legislation is
positive (the household is better off), negative (the
household is worse off), or neutral for each year of
the forecast period.
"(4) STATE-BY-STATE ANALYSIS.--A summary table
showing, for each of the 50 States and the District of
Columbia, the estimated net household impact for a
representative household in each income group for each
year of the forecast period.
"(5) CUMULATIVE FIVE-YEAR SUMMARY.--A cumulative
five-year summary for each income group showing--
"(A) the total estimated change in Federal tax
liability over the 5-year period;
"(B) the total estimated change in Federal
benefits received over the 5-year period; and
"(C) the total net household impact over the
5-year period.
"(6) PLAIN LANGUAGE SUMMARY.--A plain language
summary of the Five-Year Household Impact Forecast,
written at a reading level accessible to the general
public (not higher than an 8th-grade reading level as
measured by the Flesch-Kincaid readability test), that--
"(A) describes the overall effect of the covered
legislation on households in each income group;
"(B) identifies any year in which a household in
any income group would experience a net negative
impact after initially experiencing a net positive
impact; and
"(C) identifies any sunset, phase-out, or trigger
provision that would cause the impact of the
legislation to change materially after the first year
of enactment.
"(c) Methodology.--
"(1) COORDINATION.--The Director of the Congressional
Budget Office and the Chief of Staff of the Joint
Committee on Taxation shall jointly develop and publish
the methodology to be used in preparing Five-Year
Household Impact Forecasts not later than 180 days after
the date of enactment of the Five-Year Tax Forecast
Transparency Act of 2026.
"(2) BENEFIT VALUATION.--In estimating the value of
Federal benefits for purposes of the net household impact
calculation, the Director shall--
"(A) use the market value or cash-equivalent
value of benefits, as applicable;
"(B) account for differences in benefit
utilization rates across income groups and States;
and
"(C) include both direct benefits (such as cash
payments and tax credits) and indirect benefits (such
as premium subsidies and in-kind assistance).
"(3) TAX INCIDENCE.--In estimating changes in Federal
tax liability, the Chief of Staff of the Joint Committee
on Taxation shall account for--
"(A) the direct statutory incidence of tax
changes on individual taxpayers;
"(B) the estimated economic incidence of changes
in corporate taxes, excise taxes, and payroll taxes
on households, consistent with the distributional
methodology of the Joint Committee on Taxation; and
"(C) behavioral responses to tax changes, to the
extent such responses are incorporated in
conventional revenue estimates.
"(4) ASSUMPTIONS.--The forecast shall clearly state
all material economic assumptions used, including
assumptions regarding inflation, wage growth, employment
levels, and interest rates, and shall be consistent with
the most recent baseline projections of the Congressional
Budget Office.
"(5) UPDATES.--If covered legislation is amended in a
material respect after the initial Five-Year Household
Impact Forecast is prepared, the Director shall prepare
and publish an updated forecast not later than 48 hours
before any subsequent vote on the amended legislation.
"(d) Public Availability.--
"(1) PUBLICATION.--Each Five-Year Household Impact
Forecast shall be--
"(A) published on the public website of the
Congressional Budget Office;
"(B) transmitted to the Speaker of the House of
Representatives, the President pro tempore of the
Senate, and the chairmen and ranking members of the
Committee on the Budget, the Committee on Ways and
Means, and the Committee on Finance;
"(C) entered into the Congressional Record; and
"(D) made available in a machine-readable, open
data format suitable for analysis by the public,
researchers, and the press.
"(2) TIMING.--No Five-Year Household Impact Forecast
shall be treated as satisfying the requirements of this
section unless it has been publicly available for not
fewer than 72 hours before the first vote on the covered
legislation by the full House of Representatives or the
full Senate.
"(e) Prohibition on Waiver.--The requirements of this
section may not be waived by unanimous consent, suspension of
the rules, or any special rule or order of the House of
Representatives or the Senate, except upon a two-thirds vote
of the Members present and voting in the applicable House.".
(b) Conforming Amendment.--The table of contents of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by inserting after the item relating to section 402
the following:
"Sec. 403. Five-Year Household Impact Forecast.".the public.
SEC. 5. POINT OF ORDER.9. REPORTING REQUIREMENTS.
(a) InAnnual Report.--Not later than March 1 of each
year, the Director of the Congressional Budget Office shall
submit to the Committee on the Budget of the Senate, the
Committee on the Budget of the House of Representatives.--Representatives,
the Committee on Finance of the Senate, and the Committee
on Ways and Means of the House of Representatives a report
that includes--
(1) the number of Household Impact Statements
prepared during the preceding calendar year;
(2) the average time required to prepare each such
statement;
(3) any methodological changes made during the
preceding year; and
(4) recommendations for improving the accuracy,
timeliness, or accessibility of Household Impact
Statements.
(b) Retrospective Accuracy Review.--
(1) IN GENERAL.--ItGENERAL.--Not later than 3 years after the
date of enactment of any covered legislation for which
a Household Impact Statement was prepared, the Director
of the Congressional Budget Office, in coordination
with the Chief of Staff of the Joint Committee on
Taxation, shall notprepare and make publicly available a
retrospective accuracy review comparing--
(A) the estimates contained in the Household
Impact Statement with the actual fiscal effects of
the covered legislation, to the extent such actual
effects can be in order in the
House of Representativesdetermined; and
(B) any significant deviations between estimated
and actual effects, together with an explanation of
the factors contributing to consider any covered
legislation unless a Five-Year Household Impact Forecast
meeting the requirements of section 403 of the
such deviations.
(2) PUBLIC AVAILABILITY.--Each retrospective
accuracy review under this subsection shall be made
publicly available on the website of the Congressional
Budget and Impoundment Control Act of 1974
(as added by section 4 of this Act) has been publicly
available for not fewer than 72 hours.
(2) DISPOSITION OF POINT OF ORDER.--A point of order
under paragraph (1) may be raised by any Member of the
House of Representatives. If the point of order is
sustained, the covered legislation shall be recommitted to
the committee of jurisdiction with instructions to ensure
that the Five-Year Household Impact Forecast is prepared
and made publicly available before the legislation is
again reported.
(b) In the Senate.--
(1) IN GENERAL.--It shall not be in order in the
Senate to proceed to the consideration of any covered
legislation unless a Five-Year Household Impact Forecast
meeting the requirements of section 403 of the
Congressional Budget and Impoundment Control Act of 1974
(as added by section 4 of this Act) has been publicly
available for not fewer than 72 hours.
(2) SUPERMAJORITY WAIVER.--The point of order
established under paragraph (1) may be waived or
suspended only by an affirmative vote of two-thirds of
the Members of the Senate duly chosen and sworn.
(3) APPEAL.--An affirmative vote of two-thirds of
the Members of the Senate duly chosen and sworn shall be
required to sustain an appeal of the ruling of the Chair
on a point of order raised under paragraph (1).Office.
SEC. 6. AMENDMENT TO DUTIES10. AUTHORIZATION OF THE JOINT COMMITTEE ON
TAXATION.APPROPRIATIONS.
Section 8022 of the Internal Revenue Code of 1986 (26(a) Congressional Budget Office.--There are authorized
U.S.C. 8022) is amended--
(1)to be appropriated to the Congressional Budget Office such
sums as may be necessary to carry out the additional duties
imposed by redesignating paragraph (4)this Act, including the development and
maintenance of the Household Impact Tool under section 8.
(b) Joint Committee on Taxation.--There are authorized
to be appropriated to the Joint Committee on Taxation such
sums as paragraph (5);
and
(2)may be necessary to carry out the additional duties
imposed by inserting after paragraph (3) the following
new paragraph:
"(4) FIVE-YEAR HOUSEHOLD IMPACT FORECASTS.--
"(A) IN GENERAL.--To prepare, in coordination
with the Director of the Congressional Budget Office,
the tax liability components of each Five-Year
Household Impact Forecast required under section 403
of the Congressional Budget and Impoundment Control
Act of 1974, including distributional analyses
disaggregated by income group, filing status, and
State of residence.
"(B) MANDATORY DISTRIBUTIONAL ANALYSIS.--
Notwithstanding any prior practice or convention, the
preparation of distributional analyses under this
paragraph shall be a mandatory duty of the Joint
Committee with respect to all covered legislation (as
defined in section 3 of the Five-Year Tax Forecast
Transparency Act of 2026), and shall not be subject
to the discretion of any Member, committee, or staff.
"(C) PUBLIC DISCLOSURE.--All distributional
analyses prepared under this paragraph shall be made
publicly available simultaneously with the Five-Year
Household Impact Forecast of which they form a
part.". Act.
SEC. 7. ONLINE HOUSEHOLD IMPACT TOOL.11. RULEMAKING.
(a) Establishment.--Not later than 1 year after the dateExercise of Rulemaking Powers.--Sections 7(a) and
of enactment7(b) of this Act, the Director of the Congressional
Budget Office, in consultationAct are enacted by Congress--
(1) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such they shall be considered as part of the
rules of each House, respectively, and such rules
shall supersede other rules only to the extent that
they are inconsistent therewith; and
(2) with the Chief of Staff of the
Joint Committee on Taxation, shall develop and maintain a
publicly accessible, interactive online tool (referredfull recognition of the constitutional
right of either House to in
this sectionchange such rules (so far as the "Household Impact Calculator") that
allows
relating to such House) at any individualtime, in the same
manner, and to estimate the net household impact of
the same extent as any covered legislation for which a Five-Year Household
Impact Forecast has been prepared.
(b) Functionality.--The Household Impact Calculator shall
allow a user to input--
(1) the user's State of residence;
(2) the user's filing status;
(3) the user's approximate annual household income;
(4) the number of dependents in the user's household;
and
(5) whether the user's household currently receives
benefits from any Federal benefit program identified in
the Five-Year Household Impact Forecast;
and shall generate an estimate of the user's net household
impact for each year of the 5-year forecast period, based
on the data contained in the applicable Five-Year
Household Impact Forecast.
(c) Privacy.--The Household Impact Calculator shall not
collect, store, or transmit any personally identifiable
information. All calculations shall be performed locally on
the user's device or through anonymized server-side
processing that retains no user data.
(d) Accessibility.--The Household Impact Calculator shall
comply with section 508 of the Rehabilitation Act of 1973
(29 U.S.C. 794d) and shall be available in English and
Spanish.
(e) Authorization of Appropriations.--There are
authorized to be appropriated to the Congressional Budget
Office $10,000,000 for fiscal year 2027, and other rule of
such sums as
may be necessary for each fiscal year thereafter, to carry
out this section.House.
SEC. 8. ANNUAL RETROSPECTIVE ACCURACY REPORT.
(a) Requirement.--Beginning not later than 2 years after
the date of enactment of this Act, and annually thereafter,
the Director of the Congressional Budget Office shall prepare
and publish a report comparing--
(1) the estimates contained in each Five-Year
Household Impact Forecast prepared during the preceding
5-year period; with
(2) the actual household impacts, to the extent such
data are available from the Internal Revenue Service, the
Bureau of Labor Statistics, the Census Bureau, and other
Federal statistical agencies.
(b) Contents.--Each report under subsection (a) shall
include--
(1) an assessment of the accuracy of prior forecasts,
disaggregated by income group and State;
(2) an identification of the primary sources of
forecast error; and
(3) recommendations for improving the methodology
used in preparing Five-Year Household Impact Forecasts.
(c) Public Availability.--Each report under this section
shall be published on the public website of the Congressional
Budget Office and transmitted to the committees identified in
section 403(d)(1)(B) of the Congressional Budget and
Impoundment Control Act of 1974 (as added by section 4 of
this Act).
SEC. 9. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed to--
(1) limit or modify the existing authority of the
Congressional Budget Office under section 202 or 402 of
the Congressional Budget and Impoundment Control Act of
1974 (2 U.S.C. 602, 653) to prepare cost estimates or
other analyses;
(2) limit or modify the existing authority of the
Joint Committee on Taxation under section 8021 or 8022 of
the Internal Revenue Code of 1986 (26 U.S.C. 8021, 8022)
to conduct investigations, prepare revenue estimates, or
perform other analyses;
(3) require the disclosure of any information that is
protected from disclosure under section 6103 of the
Internal Revenue Code of 1986 (26 U.S.C. 6103) or any
other provision of law; or
(4) create any private right of action against the
United States, any agency or instrumentality thereof, or
any officer or employee thereof.
SEC. 10. SEVERABILITY.
If any provision of this Act, or the application of such
provision to any person or circumstance, is held to be
unconstitutional or otherwise invalid, the remainder of this
Act, and the application of such provision to other persons
and circumstances, shall not be affected thereby.
SEC. 11.12. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b),
this Act shall take effect on the date that is 180 days
after the date of enactment of this Act.
(b) Online Tool.--Section 8 shall take effect on the
the date that is 1 year after the date of enactment of this
Act.
(b) Point of Order.--Section 5 of this Act shall take
effect on the date that is 1 year after the date of enactment
of this Act, to allow the Congressional Budget Office and the
Joint Committee on Taxation sufficient time to develop the
methodology and capacity required to prepare Five-Year
Household Impact Forecasts.
(c) Application.--The requirements of this Act shall
apply to any covered legislation introduced or reported on or
after the applicable effective date underdescribed in subsection (a) or
(b).(a).
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