.

    Section 301(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
631(a)) is amended--
            (1) in paragraph (6), by--
                    (A) striking ``For'' and inserting ``for''; and
                    (B) striking ``and'' after the semicolon;
            (2) in paragraph (7), by--
                    (A) striking ``For'' and inserting ``for''; and
                    (B) striking the period; and
            (3) by adding after paragraph (7) the following:
            ``(8) calculations for the immediately preceding fiscal 
        year of the impact of the resolution on the net present value 
        of the Government's overall liabilities and commitments over--
                    ``(A) a 75-year horizon; and
                    ``(B) an indefinite time horizon;
        as determined using the methodology of section 331(e)(3)(A)(i) 
        of title 31, United States Code.''.

SEC. 8. POINT OF ORDER ESTABLISHED AGAINST LEGISLATION ADVERSELY 
              AFFECTING NET PRESENT VALUE OF GOVERNMENT'S OVERALL 
              LIABILITIES AND COMMITMENTS.

    (a) Report.--Section 308(a)(1) of the Congressional Budget Act of 
1974 (2 U.S.C. 639(a)(1)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (C), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) calculations under current policies of the 
                impact on the net present value of the Government's 
                liabilities and commitments of any measure with an 
                adverse impact greater than exceeds 0.25 percent of the 
                present discounted value of all future payroll taxes 
                over 75 years or an indefinite period as determined 
                using the methodology of section 331(e)(3)(A)(i) of 
                title 31, United States Code. The assumptions and 
                details of the methods used in making this calculation 
                shall be consistent with those utilized in the 
                financial statement published under section 331(e) of 
                title 31, United States Code, unless the responsible 
                official or agency elects to make calculations based on 
                other assumptions and methods for which a detailed 
                explanation and rationale is presented.''.
    (b) Point of Order.--Section 312 of the Congressional Budget Act of 
1974 (2 U.S.C. 643) is amended by adding at the end the following:
    ``(g) Negative Impact on Net Present Value of Government's Overall 
Liabilities and Commitments.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill or resolution (or 
amendment, motion, or conference report on that bill or resolution) 
that changes direct spending or revenues that would, when considered 
together with any other legislation passed by that House or enacted 
prior to such consideration during that calendar year, cause an adverse 
impact on the net present value of the Government's overall liabilities 
and commitments incurred by that measure over 75 years or an indefinite 
time horizon that is greater than 1.25 percent of the present 
discounted value of all future payrolls. The calculation required by 
this subsection shall assume that the legislative measure subject to 
the point of order will be a permanent change in law and disregard any 
changes in the terms of the legislative measure and any formula or 
mechanism for adjustments in the recommendations beyond the date of 
enactment to the extent that such change, formula, or mechanism 
increases the net present value of the Government's overall liabilities 
or commitments over 75 years or an indefinite time horizon.''.
    (c) 60 Votes.--Section 904 of the Congressional Budget Act of 1974 
(2 U.S.C. 621 note) is amended--
            (1) in subsection (c)(1), by inserting ``312(g),'' before 
        ``313''; and
            (2) in subsection (d)(2), by inserting ``312(g),'' before 
        ``313''.

SEC. 9. TRUSTEES REPORT OF LIABILITIES.

    Section 201(c) of the Social Security Act (42 U.S.C. 401(c)) is 
amended by adding at the end the following: ``In such report the 
Trustees shall include a calculation of the present value of projected 
benefits to current participants, minus the present value of projected 
revenues from current participants and current trust fund balances (the 
Closed Group Unfunded Obligation), including all supplemental 
information required by Federal Financial Accounting Standard No. 17 
Social Insurance. The report shall also include the net present value 
calculations related to the Trust Funds specified in section 3 and such 
other supplemental information as the Trustees deem appropriate. In the 
annual report and other public statements regarding Trust Fund 
solvency, the Trustees shall give prominence to the Closed Group 
Unfunded Obligation and also the annual change in the Closed Group 
Unfunded Obligation. To the extent that the annual performance of the 
Social Security system is consolidated into Federal budgetary 
aggregates reported by the Congressional Budget Office, the General 
Accounting Office, or the Office of Management and Budget, annual 
changes in the Closed Group Unfunded Obligation shall be included.''.

SEC. 10. TREASURY DEPARTMENT ANALYSIS OF TAX PROVISIONS PRESENT VALUE.

    (a) Present Value.--Not later than 6 months after the date of 
enactment of this Act, the Secretary of Treasury shall analyze and 
report to Congress regarding the methodology and utility of preparing 
calculations of the net present value of specific provisions of the 
Internal Revenue Code of 1986 that defer tax liability or cause long-
term revenue effects that are not captured in a cash flow estimate over 
5 or 10 years.
    (b) Long-Term.--Not later than 12 months after the date of 
enactment of this Act, the President shall submit to Congress a 
calculation under current policies of the impact on the net present 
value of the Government's overall liabilities and commitments over 75 
years and over an indefinite time horizon for current tax expenditures 
and any tax legislative recommendation included in the Budget of the 
United States that have an adverse impact greater than exceeds 1.25 
percent of the present discounted value of all future payrolls over 75 
years and over an indefinite time horizon.

SEC. 11. BAR USE OF EXPEDITED PROCEDURES TO ENACT LEGISLATION THAT 
              AGGRAVATES THE BUDGET DEFICIT OR REDUCES THE BUDGET 
              SURPLUS.

    Section 310 of the Congressional Budget Act of 1974 (2 U.S.C. 641) 
is amended by adding at the end the following:
    ``(i) Limitation to Budget Enforcement.--It shall not be in order 
in the Senate or House of Representatives to consider any 
reconciliation bill or resolution reported pursuant to a concurrent 
resolution on the budget that increases the deficit or reduces the 
surplus for the budget year, for the total period of years covered by 
the concurrent resolution on the budget or that changes direct spending 
or revenues causing an adverse impact on the net present value of 
United States Government liabilities and commitments over 75 years or 
an indefinite time horizon.''.

SEC. 12. REINSTATEMENT OF PAY-AS-YOU-GO ENFORCEMENT.

    (a) Statutory Enforcement.--
            (1) In general.--Section 252 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 902) is 
        amended--
                    (A) in subsection (a), by striking ``enacted before 
                September 30, 2002,'';
                    (B) in subsection (b), by striking ``enacted before 
                September 30, 2002,''; and
                    (C) by adding at the end the following:
    ``(f) Declaration of War.--Notwithstanding any other provision of 
this Act, subsection shall apply in any fiscal year unless a 
declaration of war is in effect.''.
            (2) Pay-as-you-go adjustment.--Upon the enactment of this 
        section, the Director of the Office of Management and Budget 
        shall change any balance of direct spending and receipts 
        legislation for fiscal year 2003 under section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 to 
        zero.
    (b) Pay-As-You-Go Rule in Congress.--
            (1) Point of order.--
                    (A) In general.--It shall not be in order in the 
                Senate or the House of Representatives to consider any 
                direct spending or revenue legislation that would 
                decrease the on-budget surplus, increase the on-budget 
                deficit, or cause an on-budget deficit for any one of 
                the three applicable time periods as measured in 
                subparagraphs (E) and (F).
                    (B) Applicable time periods.--For purposes of this 
                paragraph the term ``applicable time period'' means any 
                one of the three following periods:
                            (i) The first year covered by the most 
                        recently adopted concurrent resolution on the 
                        budget.
                            (ii) The period of the first five fiscal 
                        years covered by the most recently adopted 
                        concurrent resolution on the budget.
                            (iii) The period of the five fiscal years 
                        following the first five fiscal years covered 
                        in the most recently adopted concurrent 
                        resolution on the budget.
                    (C) Direct-spending legislation.--For purposes of 
                this paragraph and except as provided in subparagraph 
                (D), the term ``direct-spending legislation'' means any 
                bill, joint resolution, amendment, motion, or 
                conference report that affects direct spending as that 
                term is defined by and interpreted for purposes of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985.
                    (D) Exclusion.--For purposes of this paragraph, the 
                terms ``direct-spending legislation'' and ``revenue 
                legislation'' do not include--
                            (i) any concurrent resolution on the 
                        budget; or
                            (ii) any provision of legislation that 
                        affects the full funding of, and continuation 
                        of, the deposit insurance guarantee commitment 
                        in effect on the date of the enactment of the 
                        Budget Enforcement Act of 1990.
                    (E) Baseline.--Calculations prepared pursuant to 
                this paragraph shall--
                            (i) use the baseline used for the most 
                        recently adopted concurrent resolution on the 
                        budget; and
                            (ii) be calculated under the requirements 
                        of subsections (b) through (d) of section 257 
                        of the Balanced Budget and Emergency Deficit 
                        Control Act of 1985 for fiscal years beyond 
                        those covered by that concurrent resolution on 
                        the budget.
                    (F) Prior surplus.--If direct spending or revenue 
                legislation decreases the on-budget surplus, increases 
                the on-budget deficit, or causes an on-budget deficit 
                when taken individually, then it must also decrease the 
                on-budget surplus, increase the on-budget deficit, or 
                cause an on-budget deficit when taken together with all 
                direct spending and revenue legislation enacted since 
                the beginning of the calendar year not accounted for in 
                the baseline under subparagraph (E)(i).
            (2) Waiver.--This subsection may be waived or suspended in 
        the Senate only by the affirmative vote of three-fifths of the 
        Members, duly chosen and sworn.
            (3) Appeals.--Appeals in the Senate from the decisions of 
        the Chair relating to any provision of this subsection shall be 
        limited to 1 hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the bill or 
        joint resolution, as the case may be. An affirmative vote of 
        three-fifths of the Members of the Senate, duly chosen and 
        sworn, shall be required in the Senate to sustain an appeal of 
        the ruling of the Chair on a point of order raised under this 
        subsection.
            (4) Determination of budget levels.--For purposes of this 
        subsection, the levels of new budget authority, outlays, and 
        revenues for a fiscal year shall be determined on the basis of 
        calculations made by the Committee on the Budget.
            (5) Declaration of war.--This subsection shall not apply in 
        any fiscal year in which a declaration of war is in effect.
Honest Government Accounting Act of 2003 - Requires, in a current annual report from the Secretary of the Treasury to the President and Congress on the overall financial position of the U.S. Government, the preparation of a net present value calculation of all major Government liabilities and commitments, including outstanding debt held by the public and all social insurance entitlements such as Social Security and Medicare. Requires each calculation to: (1) be prepared for both a 75-year horizon and an indefinite time horizon; and (2) include the financial and demographic assumptions and details of the methods used in making the calculations.

Mandates that if the total of debt held by the public added to the net present value calculation of the overall liabilities and commitments of the Government exceeds 1.25 percent of the present discounted value of all future payrolls no later than September 15, 2005, the President shall submit to Congress and the Commission on Long-Term Government Liabilities and Commitments (established herein) a plan to reduce that percentage to 1.25 or less. Establishes such Commission to make recommendations to the President and Congress for ensuring that such percentage is no greater than 1.25 percent as of September 11, 2011. Requires the President to report to Congress on any legislative recommendations included in the President's budget which have an adverse impact greater than 0.25 percent of the present discounted value of all future payrolls over 75 years or over an indefinite time horizon, as well as a plan to bring the percentage back to 1.25 by September 11, 2011.

Amends the Congressional Budget Act to require budget resolutions to include calculations for the immediately preceding fiscal year of the impact of the resolution on the net present value of the Government's overall liabilities and commitments for both the 75-year and indefinite time horizon. Establishes a point of order against legislation that adversely affects the 1.25 percent by 0.25 percent or more. Directs the Secretary to analyze and report to Congress on the methodology and utility of preparing calculations of the net present value of specific provisions of the Internal Revenue Code that defer tax liability or cause long-term revenue effects that are not captured in a cash flow estimate over five or ten years. Bars the use of expedited procedures to enact legislation which has an adverse impact on the budget deficit or reduces the budget surplus.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to reinstate the "pay-as-you-go" budgetary requirements of such Act.
A bill to ensure that the Government fully accounts for both its explicit liabilities and implicit commitments and adopts fiscal and economic policies that enable it to finance and manage these liabilities and commitments, to honor commitments to the Baby Boom and subsequent generations with regard to social insurance programs, and to provide for the national defense, homeland security, and other critical governmental responsibilities.