If enacted, SB3895 is likely to have a profound effect on how fiscal policy is shaped in Congress. By requiring the CBO to analyze and predict the inflationary consequences of major legislation, lawmakers will be better informed about the potential economic ramifications of their proposals. This could lead to more cautious legislative practices regarding government spending and could influence the prioritization of certain policies that have been traditionally insulated from rigorous cost scrutiny.
Summary
SB3895, titled the Informed Lawmaking to Combat Inflation Act, proposes amendments to the Congressional Budget and Impoundment Control Act of 1974. The bill mandates that the Congressional Budget Office (CBO) provide inflation estimates for 'major legislation' that is expected to significantly impact the United States' gross domestic product (GDP). This initiative aims to enhance government accountability and transparency regarding the inflationary impacts of potential legislation before it is enacted. The bill specifically defines 'major legislation' as laws projected to affect the budget by at least 0.25% of the GDP.
Contention
However, the proposal may face contention among legislators. Critics may argue that the added requirement for inflation assessments could slow down the legislative process, complicating initiatives that aim to provide urgent assistance or address crises. Supporters, conversely, will likely advocate for the increased oversight as a necessary step to prevent potential economic disruptions stemming from poorly considered legislation. The balance between responsive governance and responsible budgeting may become a focal point of debate surrounding this bill.
Reduce Exacerbated Inflation Negatively Impacting the Nation Act This bill requires the Office of Management and Budget and the Council of Economic Advisers to provide an inflation estimate for each executive order that is projected to cause an annual gross budgetary effect of at least $1 billion. The estimate must determine whether the executive order will have no significant impact on inflation, a quantifiable inflationary impact on the Consumer Price Index, or a significant impact on inflation that cannot be quantified at the time the estimate is prepared. The requirement does not apply to executive orders that (1) provide for emergency assistance or relief at the request of any state or local government or an official of the government, or (2) are necessary for national security or the ratification or implementation of international treaty obligations.
Stop Inflationary Spending Act This bill requires the Congressional Budget Office (CBO) to provide inflation projections for bills that Congress considers using the budget reconciliation process. Specifically, the CBO must estimate the impact on inflation that will occur from implementing each reconciliation bill, including the impact on inflation that will occur during each of the first five years after the enactment of the bill.
RETIREES FIRST Act Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simpler Taxes Act