You shouldn't let the dynamic scoring controversy confuse you into thinking that right now the government produces completely static estimates of how tax policy impacts the economy. The Congressional Budget Office, the Joint Committee on Taxation, and the Treasury Department all incorporate two kinds of dynamic factors into their estimates.nike free running 5.0
Demand-side effects: Lower taxes mean more money in the pockets of households, which boost consumer spending and grows the economy. But on the other hand, higher budget deficits mean higher interest rates, which depresses business investment and purchases of houses and durable goods. Official government tax policy estimates take both of these opposing factors into account — and they generally show that tax cuts boost the economy when the Federal Reserve is keeping interest rates low but not otherwise.air max 95
Behavioral effects: If you raise the gasoline tax, people will consume somewhat less gasoline. If you raise the cigarette tax, people will smoke less and may buy more black market cigarettes. The government is well aware of these things, and attempts to incorporate them into tax estimates.free running 5.0 barefoot cyan
Proponents of dynamic scoring sometimes act as if current practices ignores the way lower tax rates can change behavior, but this simply isn't the case.welcome to my website: m-shoesbox