To require the Congressional Budget Office and the Joint Committee on Taxation to use dynamic economic modeling in addition to static economic modeling in the preparation of budgetary estimates of proposed changes in Federal revenue law.

This bill would require the Congressional Budget Office (CBO) and the Joint Committee on Taxation to change how they calculate the projected costs of major tax legislation. Currently, these agencies primarily use "static" modeling, which assumes that changes in tax law do not significantly alter overall economic growth. This legislation would mandate the use of "dynamic" modeling for any tax change expected to have a fiscal impact of $250 million or more, requiring analysts to account for how taxpayers and businesses might change their behavior in response to new laws.

For citizens, the practical impact of this bill is a shift in how the federal government evaluates the long-term cost of tax cuts or tax increases. Proponents of this method argue it provides a more accurate picture of how tax changes influence the national economy and job creation, while critics often express concern that it relies on uncertain assumptions. Ultimately, the bill aims to provide lawmakers with additional data regarding the potential "feedback effects"—such as increased or decreased tax revenue resulting from changes in economic activity—before they vote on significant financial legislation.