Overview
Title
To amend section 1105(a) of title 31, United States Code, to require that annual budget submissions of the President to Congress provide an estimate of the cost per taxpayer of the deficit and of the public debt.
ELI5 AI
The bill wants the President to tell each taxpayer how much money they're responsible for when the country spends more than it earns, like when you owe a friend candy because you didn't have enough to pay for a toy.
Summary AI
H.R. 6889, known as the “True Cost Act,” proposes changes to section 1105(a) of title 31 of the United States Code. The bill requires the President's annual budget submissions to Congress to include an estimate of how much each taxpayer is responsible for in terms of the national deficit and public debt. This means that the budget should show taxpayers the share of the deficit and debt that each person would need to cover based on their filed income taxes for the year. The bill was introduced by Ms. Maloy and referred to the Committee on the Budget.
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AnalysisAI
Summary of the Bill
The proposed legislation, titled the "True Cost Act," aims to amend section 1105(a) of title 31 of the United States Code. The bill mandates that the President's annual budget submissions to Congress include specific estimates. These estimates would detail the cost per taxpayer of any budget deficit and the public debt. In essence, this legislation seeks to provide greater transparency by illustrating the financial burden of national fiscal policies on individual taxpayers.
Significant Issues
One of the critical issues with this bill is the lack of clarity concerning the calculation and presentation of these estimates. The bill requires an estimation of the "pro rata cost" of the deficit and public debt per taxpayer, but it fails to specify the methodologies or assumptions that should be used to calculate these figures. This lack of clarity may result in confusion and different interpretations, a problem that could be exacerbated without clear guidelines or accountability on who is responsible for the estimates.
Moreover, the bill does not make it explicit whether these estimates should be embedded within the President's budget submission or presented as an independent document. This ambiguity poses challenges for seamless implementation and potentially dilutes the intended transparency.
Impact on the Public
The bill's overall aim is to make financial data more accessible to the public, allowing taxpayers to better understand their individual share in the nation's debt and deficit. If effectively implemented, this could lead to increased public literacy regarding national fiscal policies. In theory, it would empower citizens to engage in more informed discussions about federal expenditure and fiscal responsibility.
However, if the methodologies used to compute these estimates are unclear or inconsistent, the information might lead to misunderstanding or mistrust among taxpayers. This could inadvertently result in confusion rather than the intended transparency and empowerment.
Impact on Stakeholders
For individual taxpayers, the bill offers an opportunity to better gauge their fiscal load concerning national economic policies. Having a clearer picture of how much each taxpayer is metaphorically "on the hook" for could prompt greater civic engagement and influence voter behavior concerning fiscal policy decisions.
On the other hand, government officials and economists responsible for generating these estimates need clear guidelines and methodologies. Without well-defined procedures, there could be additional administrative burdens and potential disputes over the accuracy of the projected figures. This could delay budget submissions and complicate decision-making processes.
For policymakers, the bill presents both a challenge and an opportunity. It could be a tool for promoting fiscal transparency and accountability, but it also raises questions about potential implications for political discourse, particularly in an environment where national debt and budget deficits are hotly debated issues.
In conclusion, while the "True Cost Act" seeks to foster transparency and accountability in federal budgeting, the effectiveness of these goals hinges on resolving several ambiguities and smoothing out implementation strategies.
Issues
The bill's requirement for estimates of the 'pro rata cost of such deficit' and 'pro rata cost of the public debt' may lack clarity due to unspecified methodology or assumptions, leading to potential confusion for taxpayers and readers. This is especially significant given its implications for public understanding of national debt and deficit. [Section 2]
The text does not specify who is accountable for making these estimates, which could lead to responsibility ambiguities regarding preparation and verification of such estimates, potentially affecting the reliability of the information presented to Congress and the public. [Section 2]
There is a lack of clarity on whether the estimates are to be included directly in the President's annual budget submission or within another document. This ambiguity in the bill could impair its implementation and effectiveness in providing transparency. [Section 2]
The term 'taxpayers who will file individual income tax returns' remains undefined within the bill, possibly leading to different interpretations about who is included in the estimation, such as salaried employees versus business owners. This could affect the accuracy and public perception of the policy's intended reach and fairness. [Section 2]
The bill does not introduce any oversight or review process for the estimates, which raises issues about the accuracy and reliability of the figures and the transparency of the procedure used to generate them, thus possibly impacting public trust. [Section 2]
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this bill states that it will be known as the “True Cost Act.”
2. Requirement in budget submission with respect to the cost per taxpayer of the deficit Read Opens in new tab
Summary AI
The section requires that when the government's budget is expected to have a deficit, it must include an estimate of how much this will cost, on average, to each taxpayer. Additionally, it requires an estimation of each taxpayer's share of the public debt, regardless of whether there is a deficit.