Congressman Aaron Schock (IL-18), today, has introduced the Inter-generational Financial Obligations Reform Act, INFORM Act, designed to incorporate long-term fiscal impact and fiscal gap analysis into the budgeting and legislative process.
Schock’s legislation would expand the projection out to a 75 year horizon in order to allow Congress to better understand the fiscal impact of legislation and how it would affect projected long term spending versus long term tax receipts. This projection now expands only a 10-year budget window.
“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.” said Schock. “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.”
Inter-generational accounting calculates the difference between taxes paid and benefits received for each living generation and future generations, to evaluate the liabilities transferred from one generation to the next.
The INFORM Act has been introduced in the U.S. Senate by Senators John Thune (R-SD), Rob Portman (R-OH), Tim Kaine (D-VA) and Chris Coons (D-DE).