Rep. Aaron Schock (R-Ill.) recently introduced a bill that would incorporate long-term fiscal impact and gap analysis into the legislative process when budget bills are under consideration.
The bill, the Intergenerational Financial Obligations Reform Act, was referred to the House Budget Committee and has companion legislation in the Senate that was introduced by Sen. John Thune (R-S.D.).
“The INFORM Act is a smart tool Congress can use to gain a better understanding of the long-term financial decisions we are making when considering legislation; especially in light of a $17 trillion national debt,” Schock said. “To fully grasp the impact legislation will have on future generations of Americans we need to see inside a window larger than 10 years, this bill will give us the view we need.”
The INFORM Act would mandate fiscal gap and generational accounting analysis by the Congressional Budget Office, the Government Accountability Office and the Office of Management and Budget during the budgeting and legislative process.
The proposed bill defines fiscal gap analysis as the calculation of the difference between projected government revenue and expenditures. The calculations would exceed the current 10-year budget window. The legislative language also defines generational accounting as a calculation of the difference between taxes paid and benefits received for every generation.
“This kind of legislation makes sense and is needed so that future generations can understand the fiscal strain put on them by policies being crafted in Washington,” Schock said.